Fixed Vehicle Costs
Quick definition
Fixed vehicle costs are ownership expenses, such as insurance, registration, and depreciation, that aren't affected by miles driven.
Full definition
Fixed vehicle costs are the expenses of owning or leasing a vehicle that generally aren't affected by miles driven. Examples include insurance, registration fees, vehicle property taxes, and depreciation or lease payments.
These costs exist even when a vehicle is driven infrequently. In a FAVR program, the fixed payment covers the business-use share of projected ownership costs for the program's standard vehicle.
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