Not sure if this is posted in the correct forum or not, figured it's campfire conversation!

I'm currently working for a company traveling daily for work in my personal vehicle and being reimbursed for "business" mileage only at the govn't rate of $0.55/mile or something like that. Average about 20k / year.
I'm looking at changing jobs, doing the same type of work, same travel and being offered a company car. The company pays for the car, insurance, gas, maintenance, business and personal mileage.

Has anyone ever been in this situation before? I know I make some $ on the mileage but is the company car worth more $? Any advise or experiences would be appreciated.

I'd rather the headache be all theirs.

If there is no restriction on personal use, I would take the company car every time.

I have done both. Company car, unlimited personal use. My car, with monthly allowance and fuel.

If you are going to have another vehicle anyway, the allowance/mileage might be better.

If you think about it though are you really making any money after you figure the maintenance, insurance and car payments that go along with using your personal vehicle? On the other the other hand having a company vehicle where all of that is taken care of seems like a pretty nice deal. Now do you need a personal vehicle for anything in particular such as a truck for hauling things? Now if any vehicle you they give you will do then I say go for it and eliminate the expenses of using your vehicle for business use. I had a family member that was a sales person and when he retired it was the first time since he was 18 that he needed to purchase a vehicle and insurance.

Exactly.

Back in the sixties, when Dad traveled for a company, he received a weekly expense allowance to use as he pleased. He ate simply, stayed cheap, and managed to clear enough after those expenses and his car expenses to keep trading each year.

How often would you get a new company car? Every 4 years?

That's $80,000 you'd get in mileage reimbursements over the same timeframe. I'd have a hard time believing you are paying that much on gas, maintenance and insurance - so it sounds like you'd be money ahead doing the reimbursement.

I'd say do the mileage reimbursement and take a couple guided hunts.

Don't forget the IRS in all this.

I do also own a pick-up truck for hunting, fishing, and other trips to camp and similar.

I've been offered both.. and picked using my own every time..

the reason for it is stated by mudstud....the IRS...

the real choice is do you get the write off or the company get the write off...

you need to figure your taxes both ways based on past years and see what comes out best.


The smartest I ever saw, was a buddy I worked with, was based down in Texas....we got a monthly allowance, and they also paid for all the fuel we used...

This guy went out and rented a car for the week, and became a preferred customer down at Hertz or Avis.. so he ended up getting real low rates for the week...

was always driving a new car, never had to worry about maintenance or tires.. changed for whatever fit his needs for the week or month...and he was always driving top shelf stuff... preferred customer free upgrades etc...

said at the worst, his vehicle needs might have cost him $50 a month....

not bad when you consider putting on 1000 plus miles a week...

4 years at 20k miles per year at $0.55 / , mile is $44,000
Still a lot of $

Almost all of the fabricators and contractors here give out company trucks like candy. One of the contributing factors recently for turning down a job was that I was going to have to use my own truck, it's just not done here. They paid 0.53 per mile but still I didn't want to wear out my truck for company business.

20K miles per year is probably half what the IRS depreciation is bases on, so you probably be a little ahead with a company car but you probably aren't talking about big money. What kind of car would you have as a company car? If it is something the size of a Ford Focus,I'd buy my own car.

I get 56.5 cents per mile from the company. The company lets me use their card for gas but I must deduct the difference from my mileage check. Works well for me. I get an extra 12-1800 bucks per month.

Actually it's $44,000 over 4 years just for the mileage. Not sure how much gas, repairs, oil changes, insurance, and a car note would run over 4 years, but I would bet it would be more than $11,000 a year for your own car. I'd let them give me a car and never look back

Clyde

Choice of cars. Ford fusion, Chevy impala, ford Taurus, or ford escape.

I have done both but currently have the company car. Our car plan is a new car every year ( Ford Escape or Fusion at my level) and we get a gas card to go with it.

We have to declare personal miles on the car, but the company pays for them as well. (we just do a guess at the end of the year)

I typically do 40-50K a year on the car and figure 12-15K of that is personal. Thats a terrific benefit, the savings of not having a registration/insurance/gas/repairs on a personal car is a big benefit.

The other benefit of the company car is the reporting is so much easier. like I said the only thing I have to do is enter a guess for my annual personal miles once a year.

Back in the days when I had reinbursement, there was a monthly report.

If you are reimbursed for using your vehicle you are supposed to inform your insurance company which will raise your rate. If you don't and have an accident and the insurance company finds out it won't go well.

Another thing to think about, at least here almost all company vehicles are trucks and 75% of those the users get exclusive use of themand get to take them home. So lots of guys have a work truck they take home provided by the company and then get a fuel effecient/cheap car so they have a truck and a car. So that saves you from having to buy your own truck for personal use.

Pull up to a hunting camp here in season and 1/2 the trucks are white with a sign for a company on the door.

The only 1 of those I have driven is a Taurus, the 1 I drove was a great car, I select a Taurus & not look back.

I have spent most of my life on the otherside of the desk. If an employee had 2 wreaks in his company car we fired him because the insurance company whould require it.

If you have a serious accident, and the damages out pace your coverages, YOU will be liable for what is left over after the insurance quits paying (if they pay)not the company. With the cost of care today, that could very likely cause bankruptcy for the most average joe.

The job is with an insurance company so I would imagine the coverage is decent! Hope so.

I would take a company car and drive the hell out of it.

But if you drive a small fuel efficient car take the mileage. If you drive a truck use theirs.

to me it boils down to this
1. can you use it on personal use?
2. what are the insurance limits/rqmts?
3. Need to put pencil to paper with the exact car you would get from the company vs the exact car you would personally buy (mileage, insurance, etc).
4. Can other people drive the company car (wife?).

Until you figure all that out, it is purely conjecture. I had the option of driving a company vehicle vs the IRS mileage and in my situation, the IRS mileage was always better.

1. New company. Yes I can drive it for personal use and personal gas is also paid for by the company.
2. The new company pays insurance. My current company I pay insurance
3. I get choice of cars. Impala, fusion, taurus, or escape. I currently drive a personal Toyota matrix for my current company
4. Not sure about other people driving it.

Back when I was working for the Arkansas Highway Department, some of us took our work truck home on the weekends and went directly to the job instead of going to the office on Mondays directly home on Fridays. Any day that I did not have an overnight stay in a Motel I had to pay income tax on what the IRS considered the worth of me driving the truck to the job and home. That was just for the ones considered management and not the peons that drove a company truck. I also had to fill out a form for when I used it for overnight travel or it came out of my check automatically. miles

1. the fact they pay your personal fuel may sway it the way of a company car.
2. they pay insurance, but it is your personal insurance or their insurance? And what are the liability maximums and who pays beyond that. Cant put that on the ledger, but it is something to consider.
3. seems like good vehicles. do you like them? that is important. how about a truck, do you need one? will you own one anyway (and be paying insurance, registration, etc).
4. prolly should see what happens if your wife (assuming you have one) gets into an accident as the driver. My step mother has a company car and my dad cant drive it at all. Dont want to risk your job over your wife getting in a fender bender while getting a gallon of milk.

just my thoughts, hope something in there may have given you some little bit of value.

I currently own a truck for camp and hauling stuff, a car for work (I'm currently paid mileage), and my wife owns a car. I would sell my car, and keep my truck and her car.

I did the mileage reimbursement what my fortune 500 company gave me wouldn't pay for fuel and oil changes I did myself. If it was such a great deal every company in America would force you to take the company car. Only high execs had the cars it was a perk.

Just wondering who has taken the mileage route for a while. I can see that I make $50-$300/month with the mileage reimbursement depending on how much i drive that month and that will be much more once the car is paid off in two years at $300/month. But at that point ill be nearing 200k miles when things may start going wrong with the car and or need a new car shortly. In the long run, through the life of car being paid mileage, do you really make out ahead?

The money made in the previous post is after deducting insurance costs, tires, gas, oil changes, etc.

Common Core math?

I've had a company car for nearly 15 years. Gas, insurance and maintenance all paid for by the company. I am responsible for tracking personal miles and reporting it which hits as income. But it's all up to me.....
No hassles like I would guess you are going through trying to track and get reimbursed. I'd go company car every, it's a great benefit. Gas prices can go up and down, doesn't bother me a bit....drives my wife crazy when I ask her what the gas prices are

Dont know but can't you write off depreciation on the car as a business expense also?

I'd take the company car. Get a Taurus if you can.

Check on whether the insurance is covered for your spouse to drive, etc. and what the limits are. Then I'd talk with your agent to make sure you're good for any umbrella coverage requirements, etc. if applicable.

I get reimbursed for my mileage but can rent if I want. I rent if going more than a few hundred miles, but the hassle or renting for shorter trips isn't worth it to me. I end up a wash, but I'm driving a truck.

I've primarily had Taurus' and Explorers...I'd recommend either one.

I'd second this idea. I had a part time job several years back that required a lot of travel. No long trips, but 100 miles/day running around to several nearby towns was common. I was reimbursed for mileage and meals. It wasn't worth it driving my truck. But after I bought a 15 year old Honda for $1000 I earned more every day in expenses than I was paid in salary. Used that car for 2 years and never spent a dime on it in repairs. Just gas and oil, sold it for $700 after the job played out.

If I had an older (pretty much depreciated) car, I'd take the $0.55 per mile and pile the miles on my own car - and pocket the profit. If the car were new, I save the wear and tear and take the company car.

Company Car route takes out the unknown things that always happen.Flat tires,hit and run dents,major repairs,etc.Having had it both ways,I like them to take the risks.
If you buy a car for them and lose your job,you are stuck with a car.

That's a no brainer. A car "company" car to use as your own is far more valuable than any "mileage". Like NathanL stated, it's pretty much a given around here.

Had it both ways and you should let them give you a car. The first time you blow a $3500 transmission away from home and you also have to pay the $450 tow to your mechanic, that $0.55 a mile seems pretty slim.
George

Well on a few contracts I was given an old airport car to haul myself around in. Last year it was a Buick, I kind of liked the car. I never had anybody provide anything near what you are all talking about. I used my own car on on some jobs and got paid for milage but that was always a zero sum gain. You just wear out your car at a faster rate. Any job that requires me to do excessive driving or driving to do the job and in my own vehicle I pass on. I learned the hard way what a loosing deal it can be.

Take the company car but make sure it is not listed as an income on you. Some will try. Use your own vehicle for private use, hench the IRS connection

+2. Not interested in trying to manage such [bleep] to a profit.

I've done both. I'm with Steelie, take the company car.


maddog

I have done both, and it really depends on a lot of factors.

From '92- '03 I did mileage with an average of 165-180k per year.

Yes, 165k - 185k per year.

For most of that time I drove Toyota, 4x4, extended cab, long bed, 4cyl, fiberglass shell with 2,000lbs. overload springs.
My normal load was around 1,100lbs. 1/3 of the time I was pulling a trailer totaling another 1,000 lbs.

I got a new Toy every year. My trades were usally withing $1,500 of what I paid new. Ky. coon hunters were waiting for my trade ins.

I made good money on the deal. As most of it was freeway miles the cost per mile was pretty low.

The company provided an insurance rider to cover me on the way to and from jobs.

If doing it now, with the current costs, I'd go company car everytime.

I could of had a company vehicle, but i went with my own. As we get 950 a month flat rate, .54 cents a mile and a fuel card the co provides! We come out smelling like a rose. We pay for tires, oil changes, etc.

+1001

I also have done it both ways with company use cars. Much prefer that the company own the car.

Dear God, I'm being chastised by a bus driver... don't know if I'll ever recover from the shame.

A bus driver that can multiply.

A bus driver that can get a billion dollar ship built on schedule.

Yep. I've done both and would much rather have the company car unless my personal veh. was a junker and I'm making money on it.

I luckily have a company car and gas card. If I need something I make a phone call or toss it on the card.

I had a company vehicle for almost 4 years, someone in our accounting department decided it is cheaper to rent vehicles from week to week. I switched to using my own truck, it works out that I get back about double what I spen on gas in a week. For now it seems to be working out for me, it saves a lot of hassle moving stuff in and out of the rental vehicles every Monday and Friday. I would rather have the company vehicle but the extra $250-$300 a week does help, granted I have not had any major breakdowns either.

If it were me I would take the company provided vehicle though.

I'm traveling quite a bit for work this past year. Knew it was only going to last a year and debated about buying something different to gain some MPG over my reg. daily driver or just putting the miles on it.

Ended up finding/buying a Chevy Cavalier dirt cheap. Did a complete tune up on it. Found some like new tires on Craiqs list and in the last six months I've put close to 11,000 miles on it.

Car paid for itself already, gets 33-34 mpg on avg. and when I'm done with my travel in a few months I'll probably make 50% on what I paid for the car. Other than the tune up, I've changed the oil a couple of times.

Money in the bank as far as I'm concerned

I did it both ways many, many times. It just depends on the deal. I do like driving my choice of vehicles and at the end of the day, have the vehicle paid for by someone else. Now you have equity in a - albeit depreciating - asset.

No comparison. I drove a county vehicle to work as part of my job. Wasn't a long commute, only about 30 miles one way, but the road went over steepest curviest mountains anywhere. Wore three vehicles out from a Dodge truck, to a Jeep Cherokee to a Ford Explorer over 12 years. Needed the vehicle due to being a district supervisor that required emergency and communication radios and emergency equipment. Mileage reimbursement at the time was $0.32 per mile ONE WAY for using a private vehicle, they only paid for half the mileage. The real expense was brakes and suspension, the wheels were seldom going straight, brakes wore out quickly. The Cherokee did the best, although I was left with no front brake pads on one call. Motor pool did all repairs and maintenance, oil and gas were available at the office or by county credit card when traveling out of district. I would have had to buy at least one vehicle on my own during that time if not for the 'company" car. When I retired I bought a new diesel pickup for cash with the money I saved.