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Question about negotiating a corpoarte car or auto allowance

Posted on 5/6/13 at 11:53 pm
Posted by GoldenSombrero
Member since Sep 2010
2651 posts
Posted on 5/6/13 at 11:53 pm
Current job is about to require me to do more driving and less flying. I work in sales but do not have car or auto allowance in my package, my previous territory wasn't drivable.

I have 2 options, rent a car every week or expense my mileage. I'm not thrilled about either of them.

Does anyone have any experience with doing a corporate car lease? Would that be cheaper for my company than renting a car every week? Or should i try to negotiate a car allowance? What's a reasonable amount?
Posted by MNCscripper
St. George
Member since Jan 2004
11709 posts
Posted on 5/7/13 at 9:01 am to
quote:

negotiate a car allowance


Get a maintenance budget as well
Posted by PlanoPrivateer
Frisco, TX
Member since Jan 2004
2788 posts
Posted on 5/7/13 at 12:41 pm to
quote:

I have 2 options, rent a car every week or expense my mileage


I'm not sure that I understand. The new company will rent a car every week for you?
Posted by GoldenSombrero
Member since Sep 2010
2651 posts
Posted on 5/7/13 at 2:06 pm to
Yeah, I'm renting a car every week now anyways because I fly 100% of the time. Going forward it'll be 50/50 driving and flying.

Posted by alexanderjcoop
Mobile, AL
Member since Nov 2009
37 posts
Posted on 5/7/13 at 2:15 pm to
If you have the choice drive your own and get them to pay you the government rate for the mileage you drive. We had this option for years before forcing everyone into a company car.

Driving your own and getting reimbursed allows you to stay out of an uncomfortable mid-priced company car, usually basic and drive your own, hopefully more comfortable model at a truly fair rate. I hate company cars :
Posted by Golfer
Member since Nov 2005
75052 posts
Posted on 5/7/13 at 2:18 pm to
I'd let them pay for the rental. Make friends with the branch manager near you and he/she should give you the hook-up since you're renting from them all the time. You'll always have the best vehicle, even if it isn't in your booking class.

I have to rent a car about every 2-3 weeks from the same branch and they flag my request each time...usually in an SUV or a full-size car that's loaded.
Posted by PlanoPrivateer
Frisco, TX
Member since Jan 2004
2788 posts
Posted on 5/7/13 at 4:45 pm to
Ok so they will rent a car every week either out of town or in town. If you go this route then you need a second car for the weekend don’t you? That’s assuming you normally work Monday – Friday. That also means they still need to rent you a car the 50% of the time you fly out of town.

For me it would come down to what Golfer said. If you can get a deal with your local rental branch then that might be the way to go. You should be able to get an upgrade if you are renting from them an average of every other week and maybe you’re using the same rental company when you fly. Plus your company probably lets you expense gasoline for a rental whether in town or not.

If you decide to go the mileage route make sure you know what the rate is. The government allows $.565 per mile for business miles in 2013. I have a company car but some in my company who don’t (mostly part timers) have to use their own cars and my company doesn’t pay the full rate. Another problem with the mileage route is that you usually can’t count the mileage from home to your first stop as business miles. In all likelihood you will have to keep a log.
Posted by bamanmemphis
Member since Sep 2009
648 posts
Posted on 5/7/13 at 8:53 pm to
Renting a car that often is brutal. Our company did that for awhile, but was changed pretty quickly.

If you chose that route make sure you have someone you can count on to drop off and pick up,
Posted by GoldenSombrero
Member since Sep 2010
2651 posts
Posted on 5/7/13 at 10:01 pm to
quote:

Renting a car that often is brutal. Our company did that for awhile, but was changed pretty quickly.

If you chose that route make sure you have someone you can count on to drop off and pick up,



Yeah it is. Plus it's just another expense I have to track, receipts, etc.
Posted by GoldenSombrero
Member since Sep 2010
2651 posts
Posted on 5/7/13 at 10:03 pm to
Yeah I need to do this. One positive for renting is I have about a month of free rental days with National. haha. Which is nice when going on vacation.
Posted by Chris Farley
Regulating
Member since Sep 2009
4180 posts
Posted on 5/7/13 at 10:10 pm to
Go for either the car allowance or getting paid mileage(if gov rate). Unless your car eats gas or is a complete money pit, you will net gain making .55/mile and the benefits of the car allowance are obvious. You don't personally gain much from renting a car every week and it's probably more expensive to your employer as well.
Posted by MikeD
Baton Rouge
Member since Jan 2004
7207 posts
Posted on 5/7/13 at 10:44 pm to
I would go with getting the reimbursement.
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