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Company taking company provided car

Old 06-21-2017, 07:40 PM
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Default Company taking company provided car

Completely understand the financial side, and the burden of responsiblutly they open themselves up too.

What I don't understand is why no communication has been attempted in any fashion to explain why ? I digress...


Does anyone here have, or work for a company that uses Motus as their mileage tracker and reimbursement for work ? If so how has the program been? What is your average out of pocket expense AFTER reimbursement ?

We have to have a car within 5 years of new to qualify. Our flexible rate is based on fuel and fluctuations in that expense. We get a fixed monthly payment based on how many miles you average, and what size vehicle you need to perform your job duties. Anywhere from 380-450.


Currently I have a Toyota Sienna, 2017 just got it 4-5 months ago. I've put 25k on it in that time. I get around.
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Old 06-21-2017, 07:48 PM
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What sort of work? Is the vehicle a mode of transportation for your professional duties (sales, etc.), or a means of product delivery? Vastly different liability/insurance implications.

Haven't used that company specifically, but did use runziemer (sp?) in a previous job. Had to have a 4 year model year old or newer vehicle and averaged 60k per year. It was basically a wash.

The upside was being able to use my day to day vehicle all the time with no accountability other than mileage reporting. We also were able to drop having to run company logos as part of the deal which I viewed as a major plus.
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Old 06-21-2017, 07:58 PM
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I manage all the sales and ops for my company, in my position. So my vehicle is used for everything. I was asked to write off some personal and commuting miles every 6 months. Not an issue, always averaged 10-15 % of total Mileage, between the two.

They're taking everyone's vehicles across the company. It was part of our comp package when hired or promoted.

Yeah I've found a few silver linings to it. They allowed our spouses to drive our vehicles.

The only difference now, is I'm liable for it all upfront. It feels more like I'm loaning my company money honestly. There's been a lot of changes as of late, so maybe I'm just seeing the glass half empty.
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Old 06-21-2017, 08:07 PM
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Originally Posted by 1 McKee View Post
I manage all the sales and ops for my company, in my position. So my vehicle is used for everything. I was asked to write off some personal and commuting miles every 6 months. Not an issue, always averaged 10-15 % of total Mileage, between the two.

They're taking everyone's vehicles across the company. It was part of our comp package when hired or promoted.

Yeah I've found a few silver linings to it. They allowed our spouses to drive our vehicles.

The only difference now, is I'm liable for it all upfront. It feels more like I'm loaning my company money honestly. There's been a lot of changes as of late, so maybe I'm just seeing the glass half empty.
Definitely valid concerns. Biggest thing you have to size up is whether or not you have stability/commitment to the position and company. Also need to decide if this is a move of desperation on the part of the company from a financial standpoint, or just shifting some stuff around to satisfy the bean counters. I would definitely not give her a high paying job over providing the vehicle, but at the same time would not sign the note on a vehicle to work for a company that I was not committed to or that may fold at anytime.

What sort of restrictions are they putting on your choice of vehicles, and what other conditions regarding it apply?
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Old 06-21-2017, 09:06 PM
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A couple of items I forget earlier.

Make sure you have gap insurance if you are financing. Absolutely imperative giving your mileage per year.

Also price insurance at the required liability levels required by the plan, for the specific vehicle you desire to purchase. Most require 350k liability minimum and a designation of business use on the policy.

Carefully choose your vehicle based on longevity tendencies of the specific vehicle/drivetrain combination more so than fuel mileage. Pick something known for reliably going 200K+ miles without drivetrain issues.
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Old 06-21-2017, 09:59 PM
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My company used to provide cars/trucks, but now we reimburse mileage at the IRS rate (abt $0.55/mile).

We consulted our accountant, and there are a few benefits to mileage reimbursement when compared to a flat monthly fee:

- mileage reimbursement is an expense for the company, so it's a write off
- $0.55/mile is very generous - it more than covers the cost of fuel/repair/tires/oil/depreciation for most vehicles
- a flat monthly fee would have been W2 income for employees and isn't a write off
- employees can drive what they want instead of the Oldsmobuick that we would have provided.

The downside, is that employees feel like they are "making money" at that rate, and do not hesitate to drive all over God's creation instead of being efficient with their time.
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Old 06-22-2017, 12:36 AM
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I travel quite a bit for work myself. I can either expense my mileage or rent a car when I travel.

If I expense it, I get .40/mile. After doing the math I bought an older 2007 Impala for $2200 and I drive the heck out of it. Last year I put just shy of 28K on the car. At that rate I was reimbursed about $11000 while spending around $2600 in gas according to my records.

Sometime things work out
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Old 06-22-2017, 03:43 AM
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Originally Posted by RMSail View Post
My company used to provide cars/trucks, but now we reimburse mileage at the IRS rate (abt $0.55/mile).

We consulted our accountant, and there are a few benefits to mileage reimbursement when compared to a flat monthly fee:

- mileage reimbursement is an expense for the company, so it's a write off
- $0.55/mile is very generous - it more than covers the cost of fuel/repair/tires/oil/depreciation for most vehicles
- a flat monthly fee would have been W2 income for employees and isn't a write off
- employees can drive what they want instead of the Oldsmobuick that we would have provided.

The downside, is that employees feel like they are "making money" at that rate, and do not hesitate to drive all over God's creation instead of being efficient with their time.
The flat fee is a write off for the company as wages since it is included in their W2.
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Old 06-22-2017, 04:01 AM
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Are they only reimbursing you the 380-450 total including gas? Im not familiar with moths but I'm in a similar position. 10 years ago company went away from company vehicles for liability reasons. We now get $600 a month on expense report, plus they reimburse 100% fuel cost. We are responsible for tracking mileage business and personal. I aver 10-15% personal and drive 50k miles a year. My reimbursement is barely enough to cover payment, ins, plates. Pretty much all maint and repairs is out of pocket.

At the end of the year the my average reimbursement comes out to 40 cents a mile and I take the difference between that and govt rate off taxes. Although this doesn't help much if you don't have a lot of other deductions.
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Old 06-22-2017, 04:02 AM
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Originally Posted by RMSail View Post

- $0.55/mile is very generous - it more than covers the cost of fuel/repair/tires/oil/depreciation for most vehicles
Generous for a modern commuter car ($35K cost new, 25MPG, fairly reliable, etc.). My guess is that for a modern pickup of the variety favored by the vast majority of THT posters, it is break even at best.
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Old 06-22-2017, 04:09 AM
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While I was working, I had a company furnished auto for 33 of 36 years. Definitely a huge perk. Also a huge expense for any business. I was on 24/7 on call so company saw fit for a vehicle.
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Old 06-22-2017, 04:11 AM
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Originally Posted by SeaJay View Post
Generous for a modern commuter car ($35K cost new, 25MPG, fairly reliable, etc.). My guess is that for a modern pickup of the variety favored by the vast majority of THT posters, it is break even at best.
At best for sure. Not unreasonable if you only do a few reimbursed miles per year, but if you are a daily road warrior and required to drive something late model, you can take a bath quickly at the gov. rate.
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Old 06-22-2017, 04:49 AM
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I found my old Runzheimer reimbursement info hiding in an old tax folder on my computer.

in 2009-2010 I was getting $579/month flat rate, plus gas reimbursement based on the AAA gas price rate divided by 10. Was required to have an extended or 4 door full size truck, with a minimum towing capacity of 6,000 lbs. Worked out pretty well for those of us that bought new trucks at deep discounts when gas was $4.00+ a gallon. Also helped that I was in SC where the lowest gas in the nation is, but with gas reimbursement being based on AAA national average. In that regard, the higher the gas prices were, the better off I was.

Pretty much everyone was only listing their commuting miles as their personal miles, and didn't catch any crap for that at all. Not sure how it would withstand an audit. I had a second vehicle at the time, and lived in my sales territory, so I turned in next to nothing, with the justification that I used my second truck for all personal use/weekends.
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Old 06-22-2017, 04:56 AM
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For mileage tracking, I have seen my clients use an app called Mile IQ. Seems pretty good.
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Old 06-22-2017, 04:58 AM
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I've been on both sides of this. As an employee, I've done both mileage reimbursement and company vehicles. Currently as an employer, I provide company vehicles (a few service vans).

Having always been in field operations, I typically run a vehicle specifically for work. I had a Corolla that I put 180k miles on before replacing it. If you are reimbursed for a significant amount of mileage, it works out well in your favor. The scheme in the OP situation is an attempt to limit that. As others have stated, you have to consider carefully your situation to determine if it is worth it to you.

The last company I worked for practically tried to scam the field personnel by limiting reimbursement. Management had it in their heads that they were only liable for limited mileage from the field engineers travel. Lets just say I disabused them of that notion. They were trying to hide behind their misinterpretation of IRS regulation but I sent the CFO the documentation from the IRS and billed them for every mile and hours door to door. We worked from our home offices so we had no commute miles and this was the source of confusion for management. We were not legally qualified for exempt status so were paid hourly. I didn't make any friends at the management level but my income level for the next two years went up substantially. Eventually they bought everyone company vehicles as most of the field guys were billing nearly $1500 a month in mileage. They had attempted to limit monthly reimbursement to $800. Getting paid while traveling to client sites certainly changed my perspective on sitting in traffic.

As an employer, I provide service vehicles for my staff. I factor in mileage in my bids just like any other job cost. When I broke out the numbers for last year I was at a small net gain which in the longer term should cover unexpected large repair costs in the aggregate. Not sure why the companies I've worked for didn't just do the same. It is easy enough to factor in average travel mileage when bidding work out.
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Old 06-22-2017, 05:05 AM
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Originally Posted by Trollin4Tuna View Post
The flat fee is a write off for the company as wages since it is included in their W2.
But we also have to pay FICA (Medicare and SS). It's a big disadvantage for the employee, as it's taxable income.
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Old 06-22-2017, 05:12 AM
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Originally Posted by autobaun70 View Post
At best for sure. Not unreasonable if you only do a few reimbursed miles per year, but if you are a daily road warrior and required to drive something late model, you can take a bath quickly at the gov. rate.
Our reps drive about 25k miles per year and receive about $13k for that. Much better than some $500/month flat rate! You can easily find a decent, new/newer car that'll cost less than that to own and operate. Now, if you choose to drive an F350 Powerstroke Platinum edition to commute to your customers and do our work, that additional cost of ownership is your "problem".

But... some choose to own vehicles like that, and we are paying a big portion of that ownership cost with our reimbursement.
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Old 06-22-2017, 05:28 AM
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Originally Posted by RMSail View Post
Our reps drive about 25k miles per year and receive about $13k for that. Much better than some $500/month flat rate! You can easily find a decent, new/newer car that'll cost less than that to own and operate. Now, if you choose to drive an F350 Powerstroke Platinum edition to commute to your customers and do our work, that additional cost of ownership is your "problem".

But... some choose to own vehicles like that, and we are paying a big portion of that ownership cost with our reimbursement.
The restrictions on the specific vehicle are what make or break the deal. In my case it was a requirement that it be a full size, fairly nice truck. As soon as the 4'th birthday came around for the vehicle, reimbursement dropped to fuel only. I would have gladly taken the IRS rate instead, as I was pushing 50K/year. Factor in a full size truck that was averaging 11 - 13 mpg due to constant towing, and it was all a wash.

The runzhmier plan wasn't horrible, as long as you could tolerate the risk of a job change. Only shitty part was a lot of the managers like to used the sales staff as delivery drivers as to avoid running the big trucks & hourly employees. Thankfully a decree came down from corporate that this practice was to be severely limited.
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Old 06-22-2017, 05:33 AM
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Originally Posted by autobaun70 View Post
The restrictions on the specific vehicle are what make or break the deal. In my case it was a requirement that it be a full size, fairly nice truck. As soon as the 4'th birthday came around for the vehicle, reimbursement dropped to fuel only. I would have gladly taken the IRS rate instead, as I was pushing 50K/year.

The runzhmier plan wasn't horrible, as long as you could tolerate the risk of a job change. Only shitty part was a lot of the managers like to used the sales staff as delivery drivers as to avoid running the big trucks & hourly employees. Thankfully a decree came down from corporate that this practice was to be severely limited.
We struggle with the idea of placing restrictions on what type of car/truck they drive. One guy drove a 15 year old minivan and we ended up paying him $96,000 over the years that he owned it.

The idea of paying the full IRS rate for a 4 year old or newer vehicle (and a lower rate for older vehicles) is temping, as we would like our reps to show up at customer sites in something that looks "professional". The rusted out minivan wasn't worth it (to us) to pay that kind of reimbursement.
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Old 06-22-2017, 05:40 AM
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IRS rate is .535 for 2017, no?
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