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re: How much is a company car worth annually??
Posted on 1/31/17 at 2:18 pm to MSG
Posted on 1/31/17 at 2:18 pm to MSG
Great feedback... so it's basically worth $8k to $11k after taxes... this covers the note, insurance, maintenance and depreciation. Add $2-$5k for gas. $10k to $16k total after taxes? Or $1100 to $1800 per month pretax?
1
Posted on 1/31/17 at 2:21 pm to Cash
No but it's a large corporation with a fleet car service for those who want to use it...
Posted on 1/31/17 at 2:22 pm to MarlinMan
quote:
Great feedback... so it's basically worth $8k to $11k after taxes... this covers the note, insurance, maintenance and depreciation. Add $2-$5k for gas. $10k to $16k total after taxes? Or $1100 to $1800 per month pretax?
my truck cost my company around $18,000 per year and thats gas, note and insurance.
that does not include service, maintenance, depreciation, etc
This post was edited on 1/31/17 at 2:25 pm
Posted on 1/31/17 at 2:24 pm to MarlinMan
My current company offers a car OR $10k a year. Just a perk.
I take the allowance. I'll own a nice SUV after 4rys or so.
I don't drive for work. Maybe 10k miles a year on this vehicle.
I take the allowance. I'll own a nice SUV after 4rys or so.
I don't drive for work. Maybe 10k miles a year on this vehicle.
Posted on 1/31/17 at 2:27 pm to LSUfan20005
Thanks for the feedback y'all... that's exactly what I needed to know... I'll keep y'all posted as to what happens...
Posted on 1/31/17 at 2:27 pm to Panny Crickets
quote:
You pay to drive a company car?
Happens a lot. It's a minimal amount for personal use and you get all maintenance, tires, fuel, mileage, and insurance. I pay 300.00/mo for mine. I get a new one every two years.
I figured it out one time and it equates to approximately 15-18,000.00 depending on type of vehicle you get. They give us Limited Ford Explorers 4WD or F-150's.
This post was edited on 1/31/17 at 2:31 pm
Posted on 1/31/17 at 2:36 pm to Weekend Warrior79
But I do. Mileage is on my personal vehicle and I am not reimbursed for those miles. My tax attorney says and guarantees otherwise.
Posted on 1/31/17 at 3:53 pm to shawnlsu
quote:
My truck note is paid for by the company so it is mine, but I had to buy/finance it. All my gas, whether company use or not, is paid for
quote:
I am not reimbursed for those miles
Not a tax attorney, but was sitting through an IRS audit with a client when I was just starting out, and I believe the IRS views this differently. My understanding is that the only way you would be able to do so is if you are claiming all of these payments (car note & gas) as income. Then, you would be able to claim some of your repairs & maintenance and the mileage could be deductible as long as it is over 2% of your AGI.
The scenario was very similar: Client was claiming mileage on his tax returns, but also received an allowance from the company. The allowance was not being reported on his tax returns, so the IRS essentially viewed it as he was trying to double dip as the company was basically paying for it with the allowance.
Posted on 1/31/17 at 3:57 pm to RockyMtnTigerWDE
quote:
Happens a lot. It's a minimal amount for personal use and you get all maintenance, tires, fuel, mileage, and insurance. I pay 300.00/mo for mine. I get a new one every two years.
Yeah but $300 and $350 is not a minimum amount for personal use. You can literally lease a ford fusion like the OP said for $209/ month plus $2509 down, which is $69/ month over 36 months. Let's say insurance is $75/ month. That means the OP is paying $350/ month to his company for a car he could lease for $354.
Posted on 1/31/17 at 4:16 pm to baldona
I drive a 2017 F150 XLT 4x4 that listed for $48k. I pay $50 per month for personal use. Everything else is covered. Certainly worth $1000 per month minimum
Posted on 1/31/17 at 4:19 pm to WG_Dawg
quote:
believe that's called "your car".
They pay all his gas and maintenance?
I'd take that deal in a heartbeat. Drive the company car into the ground and keep my personal car for personal use.
Posted on 1/31/17 at 4:30 pm to baldona
quote:
Yeah but $300 and $350 is not a minimum amount for personal use. You can literally lease a ford fusion like the OP said for $209/ month plus $2509 down, which is $69/ month over 36 months. Let's say insurance is $75/ month. That means the OP is paying $350/ month to his company for a car he could lease for $354.
I may be missing something here, but at the end of the lease you have no value or equity in the car just like the arrangement he has with his company. A lease normally does not cover general repairs, tires, wipers, ect, like his company. And a lease does not cover unlimited miles and fuel like his company. Am I missing something? It seems like a decent deal depending on miles driven per year for non-work stuff.
The company probably has much better insurance than you are quoting for $75/month plus they take away much of the liability that he would have if the car was in his name. depending on how often he gets to trade up and how many personal miles a year he is putting on the car it could be a good deal. I would say that this is a neutral to good deal based of not knowing all the specifics.
If he bought the Fusion for $25,000
Drives 15k for work and 25k for personal use
The car's worth after 4 years and 160k miles is ~$5,000 per KBB
That is a loss of $20k
Personal fuel @ $2.35/gal @ 25mpg over 4 years is $9,400
Insurance @ $100/month for 4 years is $4,800
3 sets of tires would be $1,200
Changing oil at 6k would be 27 oil changes @ $40 per for $1,080
$100 / year for wipers, etc is $400
That is a total of $36,880 so roughly $768 per month or a savings to him of $418 / month.
Now if he only puts on 15k miles per year of personal use that would still be roughly $655 per month or a savings to him of $305 / month.
Like I said I may be missing something. I know that you can claim certain things and blah blah blah, but the truth is it would be very hard to overcome $3,660 - $ 5,000 / per year in savings. It looks like a good deal but not great for him. If he could own the car, not lease it he could get somewhat closer to even but still not there yet.
Posted on 1/31/17 at 4:34 pm to MarlinMan
So $350 includes insurance and gas?
Posted on 1/31/17 at 5:58 pm to OweO
Yes. I pay for maintenance. I drive @ 35k miles per year with 15k being personal..
Posted on 1/31/17 at 6:01 pm to RockyMtnTigerWDE
quote:
Happens a lot. It's a minimal amount for personal use and you get all maintenance, tires, fuel, mileage, and insurance.
My wife had a similar deal with her old pharma sales job. She paid a couple of hundred bucks a month and all that stuff was covered. Matter of fact, I was even able to drive the car. I think businesses started doing this because the IRS started cracking down on employee cars. I mean, that could be an untaxed benefit worth at least $10,000 a year, and way more if they hook you up with a luxury car.
Posted on 1/31/17 at 6:18 pm to CHEDBALLZ
quote:the correct answer
$10,000-$12,000 yr
Posted on 1/31/17 at 6:31 pm to MarlinMan
I get 600 a month plus it's mileage rate
Posted on 1/31/17 at 6:57 pm to baldona
quote:
Yeah but $300 and $350 is not a minimum amount for personal use. You can literally lease a ford fusion like the OP said for $209/ month plus $2509 down, which is $69/ month over 36 months. Let's say insurance is $75/ month. That means the OP is paying $350/ month to his company for a car he could lease for $354.
You need more time to marinate your thoughts. Come back with something more convincing than this.
Posted on 1/31/17 at 7:25 pm to MarlinMan
quote:
'm in sales and have a Ford Fusion with gas card. I pay $350/month and can drive anywhere with no limits on mileage or gas on the card.
Same exact set up at my company except it's a Chevy Malibu this time (was a Ford Explorer last vehicle)and I only have to pay $100/month. Get a new car every 1.5 yrs too.
ETA: the $100 month includes all gas(business & personal use), maintainence, insurance etc. Unlimited mileage. Even includes car wash membership to a chain of carwashes up here. I still have a personal car, but I find myself using the company car mostly, especially on road trips. I can decline the car and keep my $100 a month, but why would I?
This post was edited on 1/31/17 at 7:37 pm
Posted on 1/31/17 at 9:08 pm to The Rodfather
quote:
I may be missing something here, but at the end of the lease you have no value or equity in the car just like the arrangement he has with his company. A lease normally does not cover general repairs, tires, wipers, ect, like his company. And a lease does not cover unlimited miles and fuel like his company. Am I missing something? It seems like a decent deal depending on miles driven per year for non-work stuff.
The only benefit to him is his personal use. The company has to pay for his work mileage one way or another, or else that's an expense to him. If you lease a car for 3 years there is very very little maintenance outside of oil changes the first 50k miles.
So the main benefit he is getting is free gas and oil changes. If he gets 30mpg for 15,000 miles at $2.25/ gallon that's $1,125/ year benefit plus 2-3 oil changes. So $110/ month.
I have great insurance for like $45/ month. So if he can't get it for $75 he is doing something seriously wrong.
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