What would you do if you had a $10,000 a year car allowance? I'm assuming taxes will be taken out of the allowance also. Never have leased a car, always paid for them, but trying to decide if it would be beneficial to just lease one. Won't be driven a ton, for instance wife's current 2012 Highlander only has 78K miles on it.

This post was edited on 1/14/20 at 10:00 am

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Posted by JohnDoe00

Houston, TX

Member since Feb 2019

814 posts

Posted on 1/14/20 at 10:03 am to Shotgun Willie

Keep what you have and profit.

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Posted by bayou choupique

the banks of bayou choupique

Member since Oct 2014

1818 posts

Posted on 1/14/20 at 3:32 pm to JohnDoe00

dont lease it. as the other poster mentioned profit off of the allowance.

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Posted by LSUtigerME

Walker, LA

Member since Oct 2012

3789 posts

Posted on 1/14/20 at 7:23 pm to Shotgun Willie

What are the rules for the vehicle allowance? Is it just a flat bonus, effectively increasing your salary?

Many allowances require the vehicle to fewer than X miles, be less than 3-5 years old, etc. Depending on the restrictions, it may make sense to lease it. If there’s no restrictions, just keep what you have if it’s reliable.

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Posted by eng08

Member since Jan 2013

5997 posts

Posted on 1/14/20 at 7:58 pm to LSUtigerME

Yeah, but if your car looks nice - do they actually enforce those? Not that I’ve seen. Put the $ in the bank.

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Posted by LSUfan20005

Member since Sep 2012

8807 posts

Posted on 1/15/20 at 6:20 am to LSUtigerME

I’ve never had any terms with a car allowance, it’s simply a perk that the company doesn’t have to layer annual raises on. It’s a separate line on my pay stub.

Personally, I’d buy. You’ll have an owned asset within a few years and then can pocket going forward.

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