Company truck or vehicle allowance

[Chapap]

I’ve been offered a choice. A company truck to be used for company purposes only, or a vehicle allowance. Taking the company truck would certainly be easier, but the idea of them paying for my truck is tempting. Anyone have experience with vehicle allowances? The allowance will be $510 after tax. That’s a decent new/newish truck… or a ton of ranger parts. Very tempting.

My main concern is insurance. I’ve inquired about it, but probably won’t receive a reply till Monday. From what I read, it appears that’s on me. That could be 3 digits a month for a policy add on.

concern two is gas, but I’m assuming I’ll get a gas card. I could see some months having a gas bill higher than that.

 

[rubydist]

$510 a month is fairly low for a vehicle allowance. That's roughly a $25k purchase price. Not much of a truck for that price in today's world. Unless they are going to give you a pos for the company truck, I think that is a much better choice.

 

[bobbywalter]

Scope of work?



Miles expected?
Small car... Van ....all terrain and weather??


I would take the company ride ... Commercial insurance for a one man op can get out of hand...

Drive your junk after work.

Some months my fuel bill is 5 grand

 

[Chapap]

Scope of work?



Miles expected?
Small car... Van ....all terrain and weather??


I would take the company ride ... Commercial insurance for a one man op can get out of hand...

Drive your junk after work.

Some months my fuel bill is 5 grand

5 grand a month??? What’s that… 20k miles? Yeah I won’t be even close to that.

My thoughts right now. A civic would be fine 90% off the time, but really wouldn’t cut it… waiting for the reply for scope. I guess I really didn’t have all my ducks ready when I started this thread.

I’d say a Maverick would be dandy. I’d bet average 500-1000 mi per month. Heck a top trim maverick lease would be attractive, but if the company doesn’t insure me completely, I’d say it’s simply not enough to work with.

 

[bobbywalter]

10k...long month.


But depends on where your at.


Some places cheap gas is 4.30

If you don't need to haul large stuff...or tow. The Maverick is perfect. Very cost effective. I have been able to drive a few around now and think they are great.

 

[55trucker]

Speak with your insurance agent & discuss the different fee structure for a *personal* policy vs a *commercial* policy. The Premiums will not be the same. The deductibles will not be the same. When I was a contract operator the policy had to be written by an underwriter that specifically provided commercial policies.
Many personal underwriters will not even write a commercial policy so you may have to search for a new insurance provider. If you were to use the vehicle for business use & get into an accident (not letting your provider know what you're using the personal vehicle for) you could find yourself on the hook for all expenses.

 

[Chapap]

Speak with your insurance agent & discuss the different fee structure for a *personal* policy vs a *commercial* policy. The Premiums will not be the same. The deductibles will not be the same. When I was a contract operator the policy had to be written by an underwriter that specifically provided commercial policies.
Many personal underwriters will not even write a commercial policy so you may have to search for a new insurance provider. If you were to use the vehicle for business use & get into an accident (not letting your provider know what you're using the personal vehicle for) you could find yourself on the hook for all expenses.

I read that Uber and door dash require insurance. I bet there’s a lot of folks who get royally screwed and didn’t even realize they were in the wrong. That extra insurance makes those gig jobs about worthless

 

[bobbywalter]

I read that Uber and door dash require insurance. I bet there’s a lot of folks who get royally screwed and didn’t even realize they were in the wrong. That extra insurance makes those gig jobs about worthless

Often you can form an LLC...or subchapter or will have to anyway to get certain policies depending on where you live.

Easier to work under their umbrella.

 

[Eddo Rogue]

Don't forget wear and tear, cleaning it out when driving it not for work. Also I think breakdowns or whatnot would be easier to deal with on the company vehicle. I vote company vehicle. There's something about using it for work that beats stuff up so much more. I've learned to opt for company provided tools and machinery when available, as opposed to a tool rental allowance.

 

[Rimjam]

I drove company trucks/SUVs for years in the mining & construction business, pretty much standard practice in those industries. One important thing to keep in mind is 'private use' - unless specifically authorized (lawyers say in writing) the operator of the company vehicle must be acting as an 'agent' of the company in order to be covered by their insurance. Agent relationship means you're where the company expects you to be, not off loafing around at the Dew Drop Inn after work hours or on some side trip during the day to look at a parked Ranger you spotted a couple of months ago. Most larger companies require persons assigned a vehicle to sign documents acknowledging that 'private use' of said vehicle is strictly prohibited. Now with GPS tracking it's dang near impossible to cheat the system (not that I ever did of course).

 

[Eddo Rogue]

Yea they all got gps tattlers now, but I think its a good way to avoid become a bad worker. My boss had put up cameras in our location warehouse unbeknownst to me....luckily I work as if he is there watching me anyways, so it didn't matter. If anything I liked that he got to see I don't mess around, nor need to be watched. He did send me snapshot of the other guy standing around and texted me to find him something to do lol.

 

[pjtoledo]

the IRS will tax "commute to work" miles on a company vehicle.
if you take it home then drive to the same jobsite that counts as commuting the same as going to the office every day.
some companies have restrictions on your personal vehicle, such as can only be up to 4-5 years old & and in very good shape.

I've had both company cars and miles reimbursed for personal vehicles.
company cars are by far the easiest. just be sure to play by the rules.
when I was driving my Jetta diesel that got 48 mpg on CHEAP diesel in the 90s I made out like a bandit after all expenses.
forward to the 2000s and my 2005 Ranger "fleet model" broke even after about 150,000 miles then started making me money.

how much truck are you talking about?

 

[Chapap]

So I just talked to someone that said only a percentage of the 600 is taxed as income. Take home might be more like 550 instead of 510. Not a huge difference, but relevant to the conversation. Can anyone verify?

 

[pjtoledo]

try the IRS website, it has all the forms & instructions

 

[Chapap]

Alright I have the info.

mileage: 500 per month rough average
Insurance: $18 more per month
Use: strictly for transporting me
Gas is on them

A Mazda5, Sonata, or K5 is looking really attractive. So is a Miata… NO NO be responsible, no Miata…. But that Miata tho… NO, look away.