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Started By
Message
re: Company car w/ gas card OR $1k monthly allowance + fed mileage rate
Posted on 6/27/24 at 7:29 am to DeltaTigerDelta
Posted on 6/27/24 at 7:29 am to DeltaTigerDelta
quote:
A car allowance benefits the company, not you. Whoever is on the hook for providing the vehicle gets the short end of the stick. That is why so few companies provide a car these days.
Certainly, but if you buy a sedan like a Honda accord or even a domestic you’ll have $3,000/ month or $36,000/ year for a $25,000 vehicle to put on 36,000 miles a year.
Sedans can get 35 mpg without being a hybrid. New tires is maybe $900.
If you want a truck and to look cool then certainly that’s not going to last. Everyone looks at possible expenses like it’s a personal vehicle and they want to look cool. It’s a work vehicle you could possibly make some pretty good money on.
Buy one with 30,000 miles and trade it in every 3-4 years.
0
Posted on 6/27/24 at 7:32 am to Wildcat98USA
Get an EV or hybrid. Cheap to fuel so you can maximize the fed rate
This post was edited on 6/27/24 at 8:42 am
Posted on 6/27/24 at 7:38 am to Wildcat98USA
Take the Company car w/ gas card unless;
You have a high mile personal car with over 100k miles and don't care about the miles. That's a money maker.
You have a high mile personal car with over 100k miles and don't care about the miles. That's a money maker.
Posted on 6/27/24 at 7:42 am to boudinman
I do 40-50k miles per year on my company vehicle and gas card program. It's a tool to me but if I need a pickup I have one that I can use. The money I make with that tool allows me to drive a fun vehicle if I want to own that. frick an allowance.
Posted on 6/27/24 at 7:53 am to Wildcat98USA
They are willing to pay for an asset that you own (and get to choose), and finance the variable cost through the mileage deduction.
All else equal this isn’t a very hard decision. Insurance and liability is really the only thing that would make me think twice.
All else equal this isn’t a very hard decision. Insurance and liability is really the only thing that would make me think twice.
Posted on 6/27/24 at 7:54 am to soccerfüt
quote:
I’m an excellent driver…
Sure soccerFRUIT
Posted on 6/27/24 at 7:56 am to Nado Jenkins83
quote:
I get 800 a month car allowance and work from home.
Same, though I do travel for business at least a couple times a month.
Posted on 6/27/24 at 7:58 am to Darth_Vader
Take the money and run!
Posted on 6/27/24 at 8:07 am to boudinman
quote:
Take the company car, and set aside $500 in savings a month you're not payying towards a vehicle note. In 60 months you will have $30,000 in a savings account.
But you would be saving this with the mileage and allowance.
And still have that $500 from your paycheck
500/mont fir car, $210/ month in gas. This is with average gas at $3.50/gallon and you in a hybrid.
So you’ve still got 2k a month to save.
Btw this is all assuming he does drive 3k miles a month for work.
His allowance is really 3k a month, not just the 1k
Maxing out a Roth is $583/month. The guy will still have money left over for repairs and maintenance while growing his savings and not spending a dime if his paycheck.
This post was edited on 6/27/24 at 8:20 am
Posted on 6/27/24 at 8:09 am to AndyCBR
quote:
A vehicle is a rapidly depreciating asset that costs you money every mile you drive, let someone else bear that expense.
Did you completely miss the part that the company is paying the mileage rate? At 3k miles + $1k allowance, that is essentially $3k/month (with $2k tax free reimbursement). I don’t see any way the could match that value providing a car to you.
Let them pay you to buy a reasonable, fuel efficient vehicle and you can actually build wealth off this deal.
Posted on 6/27/24 at 8:17 am to OceanMan
It depends on the company car provided. A lot of these guys are in O&G or rough neck sales related to that and want a $80,000 truck with upgrades to hide their small pecker.
Sure you get 16mpg on a lifted truck with $2,000/ set tires then your $3,000/ month won’t be a net positive.
Only 30mpg at 3,000 miles a month and $3.20/ gallon is $320/ month.
Oil change is $75. That outs your monthly routine driving at $400.
You can get a car for $400/ month. Insurance is $250/ or less and likely closer to $150. If you can’t cash flow $1,000/ month here providing your own vehicle it’s a personal poor financial decision.
Sure you get 16mpg on a lifted truck with $2,000/ set tires then your $3,000/ month won’t be a net positive.
Only 30mpg at 3,000 miles a month and $3.20/ gallon is $320/ month.
Oil change is $75. That outs your monthly routine driving at $400.
You can get a car for $400/ month. Insurance is $250/ or less and likely closer to $150. If you can’t cash flow $1,000/ month here providing your own vehicle it’s a personal poor financial decision.
Posted on 6/27/24 at 8:29 am to baldona
quote:
You can get a car for $400/ month. Insurance is $250/ or less and likely closer to $150. If you can’t cash flow $1,000/ month here providing your own vehicle it’s a personal poor financial decision
I currently pay less than $500/month with my note and insurance on a year 22. I’m averaging 30.1 mog rt now. He can get a newer used hybrid that gets 50mpg and cost less than my car did new.
A guy earlier in the thread noted he pays more for insurance on his company vehicle for personal use than I do on my personal vehicle.
This post was edited on 6/27/24 at 8:31 am
Posted on 6/27/24 at 9:15 am to Wildcat98USA
If you go the mileage option, you best buy a notebook and log your odometer miles. Why? Expect an IRS tax audit coming your way, and you had better have a log record.
Posted on 6/27/24 at 9:26 am to Wildcat98USA
I had close to the same offering, I took the money and chose my own vehicle.
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