Company owned vehicle vs. Vehicle allowance

[thewoobie]

I was just curious to see if anyone had experienced the use of a company vehicle and the use of a 'vehicle allowance'. I may be coming into a situation with work where I would be driving a considerable distance (~150 miles round trip each day) and I would be getting a company vehicle. However, I was wondering if anyone has gone the vehicle allowance route. My reason for wanting to explore that option is the fact that then I would be getting a truck which I could use for both work and personal use. From my experiences most company vehicles have strict insurance limitations and you cannot use the vehicle for personal use.

If anyone has done this, how was the issue of a down payment handled? I'm really just looking at options to present to my employer at this point.

Thanks, Matt

[Mack]

What happened to the most reliable engine on the road, parts 1 and 2?

[kPs]

Depends on the amount you will be given for an allowance.

Me? I just opted for an allowance so I could get something to fit my family.. Just bought an unlimited today! I drove a co vehicle for 3+ years, my allowance is pretty comparable to the savings from the co truck. I guess it really depends on what they will give you.

That and if you work 49 weeks of the year, that is 36K miles on your truck.. that is a LOT of miles on a personal vehicle.

[ScaldedDog]

I've had a company car with unlimited personal use since '98, and it's a pretty good deal. I figure it's worth roughly $10K/year, even though I have to pay $100/month for the personal use. We can optionally choose to pay for upgraded cars, but I'm too cheap so I drove Taurus' until I thought I'd puke. No complaints about the current Fusion, though.

Having the company sled is what's allowed me to have a tow rig, as I wouldn't want to drive a big truck all the time.

That said, I was talking to a coworker today who used to drive 2000 miles per week(!) when he was a contractor to us, and made a ton of money on the mileage. Then we hired him and he got a company car, but he'd rather have the mileage.

Mark

[boardmike]

Go for the company vehicle. I had a car allowance with one job for a couple years and it defenitely wasn't as good. There is no down payment issue to discuss, you don't get one. You could try to get a signing bonus to cover this but I have never heard of a company giving a down payment. Most times with an allowance you get the ammount put in your check once a month. Some companies will give you a gas card but it only covers gas and not other services like oil changes. You will be responsible for vehicle maintenance, title and insurance. You will make some money back on taxes for mileage (deduct gas cost if you get a company gas card) but I found that it really wasn't worth it with the mileage depreciation on the vehicle.
I've had company vehicles for over 14 years and it's great. You don't have to worry about repairs, wear and tear, title, insurance and depreciation. Most companys charge you a fee for personal use, it is a flat fee or a percentage or mileage charged at a certain rate, both are taken out of your check. Sometimes you will get a choice of vehicle or can influence their decision. Most times it is a taurus type sedan or a mini van. I lucked out, I had a mini van and my boss was in town for the 2006 pre-holiday blizard where we almost died driving in it, in Feb. I received a new 2007 Durango, my first cool company car.

Find out how much the allowance is and look into the personal use subject. Do all the math and go with what makes sense.

[clemsonkrawler]

I have a 2006 Dodge Crew cab CTD company truck. They pay everything.... gas, insurance, repairs. Plus if you tell YOUR insurance company you drive a company truck, your insurance might go down. A freind of mine gets a vehicle allowance. He could get a small eco-car and come out OK on it... but he drives an expensive SUV and it actually costs him a few hundred a month wth gas, taxes, and insurance.

[Jesse]

I had a company Expedition for a few years. The hardest part was convincing them that I needed a big 4x4 for job sites, snow, mud, hauling clients without getting stuck, and so on. I then took it skiing, off-roading (shhhh, don't tell the boss), weekend camping, etc. They paid insurance, repairs, and all of the other stuff. I did have to pay a little extra for having it and also for personal miles, but that was still cheaper than paying for my own rig, insurance, repairs and then getting the pittance of an allowance. Go for the company rig. I get an allowance now for my 5.9 ZJ (which I love to drive) but I'd rather have the benefits of the company rig....

[MtnRunner]

I've had both. The company rig was nice since they paid for everything. But, I was stuck with a Ford Escape. I now have the car allowance...but it doesn't come close to paying for the car payment, insurance, and maint. They do pick up business gas though. I do like being able to have whatever rig I want though and the ability to mod it.

[jredmond]

go with the company truck. I have a friend that got a Chevy 2500 4 door and they pay for everything unless he drives it out of state, then he has to pay for gas out of his own pocket. He even pulls his boat with it across several states.

If you do have a personal use issue just buy a high mileage truck and only use it for towing. This way the value of the 2nd vehical wont loose that much due to depreciation and the out of pocket expence for upkeep on the 2nd truck will be cheep since it will not be used that much.

[Leon Phelps]

Company vehicle hands down will beat just about any pittance they will offer for you to beat the hell out of your personal vehicle. Now if You buy a work beater (honda, toyota, etc...) then you may stand to pocket a few bucks a month.

[wileec]

Remember that if you go with the allowance you can not also deduct the mileage on taxes at the end of the year. Just a thought. I would also go the company route especially if you have a voice in the choice of vehicle.

[Jeffro600]

Company vehicle: Youll probably be stuck with a fleet kinda car...think Taurus, Malibu, Focus or some other cheezy Domestic. You wont have to pay for repairs, insurance or gas. You can drive it like a rental and not feel bad cuz its not yours. Once its done with it, change jobs or get fired, its gone.

Allowance: You get to pick what YOU want. Most insurance companies require you to carry extra coverage for something that will be used for work purposes other than getting to and from. Youll be responsible for insurance and probably gas unless they give you mileage too. Youll also probably be responsible for repairs unless you can sweet talk that into the deal too. Youll be paying for something that you will own and once your done, its yours.

Both have their pros and cons...if they offer mileage and enough money to cover the car and insurance, id go that way personally. If you have a choice of vehicle for the company way, id go that route.

[Mack]

Now if You buy a work beater (honda, toyota, etc...) then you may stand to pocket a few bucks a month.


He's got one of each; the former doesn't run, and the latter barely :flipoff2:

Woobie's line of work is in construction, and he works for a small firm. He'd more then likely have his choice, and it would more then likely be a truck.

[Leon Phelps]

He's got one of each; the former doesn't run, and the latter barely :flipoff2:

Woobie's line of work is in construction, and he works for a small firm. He'd more then likely have his choice, and it would more then likely be a truck.

In that case, take the company vehicle, beat the shit out of it, turn it in after a few years and get another one. :thumbsup:

[thewoobie]

Thanks for the replies.

As Mack noted, I work construction so my hopes would be that a company vehicle would be a truck. In which case I was hoping to pay a little extra to get a truck I enjoy and can use on my own terms. I was just trying to avoid having two trucks at home as well as the Runner if I were to get a company vehicle as well as purchase a truck for my own use later on down the road.

I have researched and looked at the pros/cons of both, had a company work truck before, etc. but was just curious to see what people have experienced first hand.

Thanks, Matt