# Mileage reimbursement vs company car: Cost analysis

> Detailed analysis comparing actual costs between reimbursing employee mileage and providing company car.

**Author:** Camila Ribeiro — Field Operations Editor  
**Published:** 2025-10-20  
**Updated:** 2025-10-20  
**URL:** https://quilometragem.com/blog/mileage-reimbursement-vs-company-car-cost-analysis

**TL;DR:** Detailed analysis comparing actual costs between reimbursing employee mileage and providing company car.

- Deciding between mileage reimbursement or company car is strategic financial decision.
- Reimbursement seems R$ 3,500 cheaper/year at first glance.
- - Under 15,000km/year per person: REIMBURSEMENT - >25,000km/year: COMPANY CAR - 15-25,000km/year: ANALYZE CASE BY CASE Use Quilometragem to track current km of each employee before deciding.

## Mileage Reimbursement vs Company Car: Cost Analysis

Deciding between mileage reimbursement or company car is strategic financial decision.[^irs-2025] Let's look at real numbers.

## Company Car — Annual Costs
- Acquisition: R$ 80,000 (20% year 1 depreciation = R$ 16,000)
- Insurance: R$ 4,500/year
- IPVA: R$ 2,400/year
- Maintenance: R$ 3,000/year
- Fuel (20,000km, R$ 6/L, 12km/L): R$ 10,000/year
- Total: R$ 35,900/year for 1 vehicle

REIMBURSEMENT - Annual Costs:
- 20,000km × R$ 1.50/km = R$ 30,000/year
- Administrative management: R$ 2,400/year (app + HR time)
- Total: R$ 32,400/year per employee

## First Glance vs Full Analysis

Reimbursement seems R$ 3,500 cheaper/year at first glance. But consider:

1. FLEXIBILITY:
   - Company car: employee uses only when needed, company saves on low km
   - Reimbursement: pays only what's actually driven

2. SCALE:
   - 1 employee: reimbursement cheaper
   - 5+ employees driving a lot: fleet may be more economical
   - Fleet allows volume discounts, corporate contracts

3. TAXATION:
   - Company car: 100% deductible if exclusive for work
   - Reimbursement: deductible if well documented
   - Personal use of company car: becomes taxable benefit

4. RISK:
   - Company car: company assumes accident, theft risk
   - Reimbursement: employee assumes, company only reimburses km

## Recommendation by Mileage Band

- Under 15,000km/year per person: REIMBURSEMENT
- >25,000km/year: COMPANY CAR
- 15-25,000km/year: ANALYZE CASE BY CASE

Use Quilometragem to track current km of each employee before deciding. Real data > estimates.

## Frequently asked questions

### When is reimbursement cheaper than a company car?

For employees driving less than 15,000 km per year, reimbursement is usually financially advantageous for the company.

### When does an in-house fleet pay off?

Above 25,000 km per employee per year and five total vehicles, fleets negotiate volume discounts and better amortize depreciation.

### How to decide between models?

Model both scenarios per employee using real mileage data and weigh flexibility, risk and tax impact before the verdict.

## Sources

- [IRS — Standard Mileage Rates for 2025](https://www.irs.gov/tax-professionals/standard-mileage-rates) — Internal Revenue Service (2026-04-28)
- [IRS — Personal use of employer-provided vehicles](https://www.irs.gov/government-entities/federal-state-local-governments/taxable-fringe-benefit-guide) — Internal Revenue Service (2026-04-28)