Flat rate car allowances fail drivers because they're unfair. A $500 car allowance doesn't mean the same thing to two drivers in two different states, or even drivers in rural versus urban areas. From gas to insurance, the cost of driving varies widely across regions—so the value of a vehicle reimbursement should too.
𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝗱𝗼𝗲𝘀𝗻’𝘁 𝗰𝗼𝘀𝘁 𝘁𝗵𝗲 𝘀𝗮𝗺𝗲 𝗲𝘃𝗲𝗿𝘆𝘄𝗵𝗲𝗿𝗲. Gas in some states can be almost twice as expensive as in others. Plus, gas is a primary determinant of total vehicle expenses. Other costs, like insurance, are regionally-sensitive too. But if you give your whole team a flat-rate allowance, drivers in Texas the same sum as drivers in California, some people are going to come up short. $500 a month doesn’t mean the same thing to two people, one of whose gas bills is twice the price. See this short clip below of a recent podcast I did explaining these issues. #fairreimbursement #Cardata #podcast #allowance
