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Company taking company provided car


Company taking company provided car

Old 06-23-2017, 06:37 AM
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I've been on both sides of the company car/mileage reimbursement table (as an employee and employer):

A company car is great. You don't have to worry about anything. Drive it like a rental car, park in tight spots, and who cares if the check engine light comes on and a piston rod goes through the block of the engine? It's all taken care of. The downside, is that you have to drive what someone else decides is right for you. I had Oldsmobuicks and Chevy Luminas back in the day, and they were quite dorky. But "free". Zero worries.

The nice thing about mileage reimbursement, is that you can drive what you want and get most or all of the expense covered. I switched to BMWs at that point.

From an employer perspective, I prefer to reimburse for mileage, as I don't want the liability of having a fleet of cars out there worrying about employees' weekend trips or the possibility of the company being somehow liable for accidents/drinking/driving/etc. It's also fair on both sides of the table: we only pay for business miles.
Old 06-23-2017, 06:38 AM
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Originally Posted by RyanL11 View Post
Companies don't want their employees pulling up to a customer in a pos, and if they are paying, they can do what they want.

I personally have a company car, and it states that we have to make sure it's clean at all times and free of any damage. When you're working for a large company, appearance means something. Just like I have to keep a professional appearance and dress appropriately.
100% agree!
Old 06-23-2017, 08:04 AM
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I worked for a company that had a couple of hundred company cars. They were leased on a two year rotation with a base number of miles. When they were turned in, we'd pay extra for the average number of miles if we were over the base mileage. If we were under the mileage allotment, we'd be reimbursed.

Our gasoline went on a Wright Express credit card that required we put in our car's mileage. Management could easily track where they were on mileage with that info.

Monthly reports would be made on our personal mileage--transmitted on the internet. And we'd get a tax bill for at year end for inputed income on the personal mileage. Everyone just made up numbers on the form--not keeping close track of personal mileage.

Things went smoothly operating this way. I'd hate to have had to use a personal car for 50K miles per year as there's just no easy way to get out of a 2 year car with 100K miles. Regular lease programs would be charging $.15 per mile over 12,000 miles per year--$11,400 to turn the car in. The numbers just don't work out well.

What's so bad about traveling 1000 miles per week is that we also had a 40 hour per week job to do. Since we were on salary, our workday was 12 hours every day (including driving)--without hourly compensation for overtime. They owed providing us with a decent car in good condition.
Old 06-23-2017, 08:50 AM
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My solution was 1-2 year old off lease cars. Find a source for something you like (in my case VW Jetta's) and buy with <20k miles post initial depreciation. Drive 75k. Rinse and repeat.

I would generally have only routine maintenance, and one set of tires per car. Worst case I would trade it for the next one, but I keep my stuff nice so there was generally someone I knew or at the company who'd buy it from me retail. Always came out with zero out of pocket.

I also segregated car reimbursement money in a separate account used for all things car. People who complain are usually ones who spend car money on vacation, then bitch when a cost appears and hits their cash flow.

Best part was my truck stayed clean and low mileage in the garage.
Old 06-23-2017, 09:18 AM
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Originally Posted by RMSail View Post
But we also have to pay FICA (Medicare and SS). It's a big disadvantage for the employee, as it's taxable income.
I know. I was just correcting the statement that it isn't a write off.
Old 06-23-2017, 11:41 AM
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Originally Posted by dr_bw View Post
I use my own personal vehicle for work (state employee). Sometimes I wish I drove a Prius because the $0.535/mile reimbursement would look a whole lot better than after having driven my GMC Sierra. I think one thing to aim for is a balance between upfront cost for the vehicle and cost of ownership. Seriously, buying a gently used Prius may make a lot of sense (I can't believe those words just came out of my mouth). Kind of like the earlier poster who bought the 2007 Impala for a song. He's making money every time he drives, which is a good thing because that car is going to need to be treated as a disposable item with the mileage being put on it.

Good luck with the change. I've never had the benefit of a company car so I don't know what I am missing. I am sure you will adapt.

buy a Mitsubishi Mirage... I can get 50MPG on non-ethanol gas..
Great commuter cars..
Old 06-23-2017, 12:54 PM
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This seems to be what a lot of companies are doing. I have a friend of mine that made a big stink about the company he worked for when they did the same thing. He was told to turn in his company car at the end of the month with no explanation. They told him to buy a car & the company pays for fuel & oil changes but does not pay for any maintenance, tires, or his insurance. He refused to turn the company car in because the car was part of his original compensation package. Sadly they found a reason to fire him & he sued them & lost.

Companies just don't give a dam about their employees any more. I worked for Emerson Electric for 17 years & my last full year I brought in $3.2M of GROSS PROFIT & in the end it didn't matter they let 55 of my fellow colleagues go the same day. They subcontracted all of our jobs to people from the Philippines. They paid them 2/3 less money than we all made! F'in a-holes just didn't care as long as they could hire people for ALOT LESS MONEY!

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