Case Study: Beverage Distributor saves $420K with Cardata FAVR reimbursement

Beverage Distributor Transitions to a FAVR program and saves $420K

Beverage Distributor, a company with about 150 drivers, was struggling with the cost and administrative burden of a traditional vehicle program. They were paying a taxable $600 monthly car allowance and using fuel cards to cover work-related gas expenses, which drove up costs and created inefficiencies.

Cardata implemented a Fixed and Variable Rate (FAVR) reimbursement program to replace the allowance and fuel card system. The switch helped Beverage Distributor save $420,000 in tax and fuel card costs in one year, while also reducing admin work and cutting fuel overspend from non-work-related usage.