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The Value of a Company Vehicle As Salary Comp.

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The Value of a Company Vehicle As Salary Comp.

Old 02-06-2010, 02:25 PM
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Question The Value of a Company Vehicle As Salary Comp.

What does one feel the value of a company supplied vehicle and gas card is worth as part of a compensation package in the northeast??
What is considered normal for a monthly vehicle allowance should one use their own POV?

Thanks
Bruce H.
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Old 02-06-2010, 02:32 PM
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IMO it really depends on how much driving you are doing. I put about 1000 to 1250 miles per month on my company vehicle and my estimation is that it saves me approx. 7 to 10 thousand dollars a year for utilizing this vehicle with gas and tolls and maintenance etc. BTW I am in NJ and occasionally travel to NY city or PA but rarely.
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Old 02-06-2010, 02:32 PM
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I am sure it is much higher in NE but around here I am told most companies say a company auto is worth 10K per year at least
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Old 02-06-2010, 02:33 PM
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When I worked for a large GC in DC area I was taxed on approx. $6000 of the company vehicle I drove, each year. When I used my vehicle, I got $800/mo. but I paid my own fuel, which was no big deal since I was going to and from the same place. If I had to travel elsewhere for business, I was paid mileage.
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Old 02-06-2010, 06:00 PM
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I am in NJ. I would guestimate a company car to be worth $9k to me. While I do contribute to the monthly cost, I am able to use the car for personal use and my wife is also insured to use the car for personal use. Other than my monthly contribution, I have no other out of pocket expenses.

An easier way to figure this out would be to calculate the following:

$300-$400 monthly car payment
$100 monthly insurance expense
$200+ monthly gas expense
$25-$100 monthly "maintance" expenses (lower when car is newer but higher in the 3rd and 4th year
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Old 02-06-2010, 06:03 PM
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When I had a company vehicle in the mid 90's in Kentucky I valued it at around 5k so with inflation and location 10k could be accurate. My company paid all gas and expenses and provided me a new car every 2 years. It was really nice. I was taxed on any miles above what I reported as business miles.
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Old 02-06-2010, 06:13 PM
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I had a company car with my last job (left Dec 31st) now I drive one of my cars to the new gig, that said it was a blessing and a pain my company keep tight logs and for every personal mile you drove it cost you .25 per mile. If you had a fender bender in the car you were subjected to a DOT breath and pee test within 4 hours business hours or not.

I never got in it on my off time just not worth the issues when there is 4 other cars to drive...

I did not put any value in it as I was an outside salesman and would not have considered driving my personal car those miles... 18K in 6 months.


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Old 02-06-2010, 07:09 PM
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I feel the vehicle is $15k i don't have to make to give the $5k to taxes and the $10k it would cost me annually.
I have a company car that i pay nothing for and i rack up 36k miles annually.
It''s the major reason i keep my job.
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Old 02-07-2010, 07:29 AM
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I place the value in the 10-12K range for a 4WD truck and 7-9K for a well equipped car per year. This includes the cost of insurance. Gas use is extra. It's also important to remember that these are pretax dollars.

A good friend is in sales, must buy a car to certain specifications, puts 35K miles a year on it, pays all repairs, ect. I think he's getting screwed as they pay the IRS rate. He's happy most of the time about it so I guess that's all that matters.
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Old 02-07-2010, 09:50 AM
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Depending on the vehicle,

$600 - $1,000 / moth.

That's from the low being a Honda Civic Ford Focus to the high being a full size 4x4 diesel truck
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Old 02-10-2016, 12:15 PM
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Default Company Vehicle value

Cars about $12,000.00 and Trucks about $15,000.00 in the Great State of Texas. Exclusive of the gas card that accompanies the vehicle.
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Old 02-10-2016, 12:46 PM
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It all depends on what the vehicle is.
We get our choice of $45k-$65k vehicles as part of an all-in allowance of $1,200/month.
I have a 2015 Jeep Grand Cherokee Overland (MSRP $53k).
The 3-year no money upfront lease cost is $690/month, insurance is another $140/month, gas is $200/month (at $2.40/gal) and maintenance is maybe another $40/month.
I am a little under the allowance, but I prefer the Jeep over pretty much everything that costs less than $70k.
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Old 02-10-2016, 12:49 PM
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At the former large company I worked for- I had a company vehicle, ford escape, unlimited personal use, fuel card, new vehicle every 36mo or 70k whichever came first. They valued it at $10k per year. Using your own vehicle and taking the $$ was not an option. Vehicles had to be clean, low mileage and presentable.
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Old 02-10-2016, 12:50 PM
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Seeing how the thread is 6+years old, I think the OP got the answer by now.
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Old 02-10-2016, 12:54 PM
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left a company where we were given a company truck and the expense card to cover everything and unlimited personal use.

the new company is 1250 a month car allowance.........that 15K does not come close to covering the cost of my own vehicle..... I am driving the same vehicle the last company let me drive.......around 42K to buy............

I would say it's more like 18K a year in old Lousiana
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Old 02-10-2016, 02:52 PM
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My company gives me a new 4x4 truck every two years. I can drive it as much as I want for personal use. They pay the gas, insurance, and maintenance. As much as I drive it, it is an easy $15k a year if not more. A new GMC Z71 is around $45k here new. Insurance is about $900 a year. Gas is a bunch. I do pay the IRS tax on it BTW.

Last edited by cwhite6; 02-11-2016 at 06:31 AM.
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Old 02-10-2016, 03:15 PM
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Back inthe early 90's the truck with company logos was valued at $5000. Since that time until the early 2000's any personal,miles were included. The feds caught on and logs had to be kept and we were charged for our personal use. Finally the company went to $1200/month allowance plus fuel and we had to own a late model truck or SUV. The next company I went to only paid a flat $600/month including gas. Currently I keep a log and am reimbursed at the Fed rate of .54/mile (down from .57-1/2 per mile).

I guess it depends on the vehicle that is supplied. I liked the f-150 4x4 supercrew alot better than the taurus wagon or windstar.
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Old 02-10-2016, 06:40 PM
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It's considered a taxable fringe benefit by the IRS. So it may not be quite as good as it sounds, employer should be withholding from your paycheck. There are a couple of scenarios to determine how the value of the perk is determined by the IRS, one sets the value at $0.56 per mile. You'll likely need to keep a log of business vs personal use.
http://gtm.com/business/tax-rules-fo...pany-vehicles/
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Old 02-10-2016, 07:58 PM
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I have had a company vehicle for 20 years now and it's a fantastic benefit. I put in my monthly personal vehicle usage and I get taxed on that. I put on about 3K miles a month and my personal usage is very small because my company vehicle is usually loaded with everything I may need. My wife calls my car my apartment.

I know some people complain about their vehicle but unless they made me drive a stupid looking Fiat or something I got nothing to say. The company I work for now takes $135/month out of my check for the company vehicle but it's a brand new Equinox so how could I complain.

I agree that the average value would be around $10K per year.
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