As part of your company's FAVR program implementation, it must adhere to the IRS FAVR guidelines. These guidelines require your employer to choose a standard automobile (Kliks refers to this as Standard Vehicle) to base your Fixed and Variable reimbursement rates.


The Standard Vehicle (example: Sedan, SUV, Truck, etc.) is the vehicle your company has selected to calculate your FAVR rate. The vehicle type that was selected is one that allows you to conduct your job responsibilities. 


Note, you are not required to drive a vehicle that matches your standard vehicle, you can drive any vehicle that enables you to perform your job with your company and adheres to the IRS FAVR requirements your employer has selected, namely number of years of vehicle ownership and factors related to the cost of the car when new (MSRP).