How to Money · Monday, June 29, 2026
Jesse inquires about the FAVOR (Fixed and Variable Rate Reimbursement) program for company-provided vehicles and whether leasing makes financial sense given the program's parameters. The hosts discuss how to optimize the reimbursement and suggest driving a newer used car might be more financially advantageous than leasing.
“My question is about cars. I currently own a twenty twenty two or have four prime. I have no payments. My company utilizes the Favor program or the fixed and Variable rate Reimbursement program, allowing tax free reimbursement.”
“I am currently incompliance with the program, but at the beginning of twenty twenty seven, my vehicle will pass out of the compliance window. Of a vehicle being four years old or less, a monthly payment is calculated based on location, and then a variable rate is paid out for each mile driven.”
“Have you worked with the Favor program before in twenty twenty seven? Does the math say, take the decrease in monthly payments to keep using a vehicle owned outright? Do I sell the vehicle and buy a new or used car and keep me in compliance for another a year or two? Or lease based on the rolling nature of the program.”
“Leasing has always been a bad choice for me financially, But based on my new situation, could it make sense?”