Divide the difference by the number of years you plan to keep the vehicle. Finance Charges - Note interest charges if you borrowed money to buy the vehicle. 2000 Edition 2000 Chevrolet Cavalier LS 4-cyl. 1998 Edition 1998 Chevrolet Cavalier LS 4-cyl. Although some firms continue to provide vehicles to full-time business travelers, a growing number of employees use their own vehicles for company business.
Companies use three primary methods to reimburse employees for business use of personal vehicles.
Flat Mileage Allowance - Many companies provide a flat allowance per mile, plus allowances for such charges as tolls and parking. The system involves a minimum of bookkeeping and office control, but it can result in overpayment or underpayment when compared to actual driving costs. This, too, may result in overpayment or underpayment when compared to actual driving costs. Because employees who use their own vehicles for company business also use their vehicles for personal driving, reimbursement should not amount to 100 percent of the total costs.