How does my car affect my reimbursement?

First of all, your car will have no impact on your fixed and variable reimbursements. This is because your reimbursements are based on your company's standard vehicle profile, not the actual car you own and drive for work. That said, if your car isn't compliant, it can still affect your gross and net reimbursements.

Let's break this down, starting with your standard vehicle profile.

Standard vehicle profile

Every company that works with Cardata chooses at least one "standard vehicle profile." Then, each of their drivers get assigned to one of these vehicle profiles. The type of vehicle that you're assigned will generally reflect the type of vehicle you need to do your job.

Your reimbursement is calculated based on the cost of owning and operating your assigned standard vehicle profile, not your actual vehicle. For example, if you own a Tesla and drive it for work, but your standard vehicle is based on a Hyundai, you will be reimbursed as if you drive a Hyundai. This is why your car won't impact your fixed and variable reimbursements.

If I'm reimbursed based on a standard vehicle profile, why do I need to share my car information?

If your car isn't considered tax compliant, as per FAVR tax rules, your net reimbursement (reimbursement amount after taxes) or gross reimbursement (reimbursement before taxes) may be impacted.

This is why we ask you to submit your car information even though your reimbursement is based on a standard vehicle profile—it helps us determine whether your car is in compliance.

Cars may not be considered tax compliant for the following reasons:

  • The vehicle is too old.
  • The vehicle has too many miles on it.
  • The vehicle was purchased for less than 90% of the MSRP (manufacturer-suggested retail price) of the company’s standard vehicle. For example, if the company’s standard vehicle has an MSRP of $50,000, the vehicle a drives owns must cost at least $40,000 in order to be compliant.

If you are out of compliance, either your net or gross reimbursement will be impacted: 

  1. Your net reimbursement

    Throughout the quarter, you’ll collect your reimbursements in full. When the quarter comes to an end, your reimbursements will be tested for tax eligibility. If your car is out of compliance, you will be retroactively taxed for the quarter’s reimbursements. 

  2. Your gross reimbursement

    Your company may enforce an in-house age or odometer rule. In this case, your employer may choose to deduct funds directly from your reimbursements. 

Make sure you carefully read your company vehicle policy and ensure that you're driving a compliant car to get tax-free reimbursements. If you're ever concerned about whether or not you're compliant, our support team is available at