Car allowance????

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anonymous

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Does anyone have an opinion on company cars? With the car allowance Is it better to get a shorter term loan? Buying used or new? Just wondering if anyone has any helpful hints. I've always had a company provided car until now. Thank you.
 




anonymous said:
Does anyone have an opinion on company cars? With the car allowance Is it better to get a shorter term loan? Buying used or new? Just wondering if anyone has any helpful hints. I've always had a company provided car until now. Thank you.
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I have always had a company car also. I just purchased mine on 4 year loan. I bought a used (2 years) off lease. It had ridiculously low mileage and I LOVE it! I could not be happier. I bought it used because of the amount of driving I will do and the areas in which I park in. It made no sense to me to buy it brand new. Good luck! It was so fun to shop for cars.
 




anonymous said:
I have always had a company car also. I just purchased mine on 4 year loan. I bought a used (2 years) off lease. It had ridiculously low mileage and I LOVE it! I could not be happier. I bought it used because of the amount of driving I will do and the areas in which I park in. It made no sense to me to buy it brand new. Good luck! It was so fun to shop for cars.
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I appreciate the feedback. I am looking at the same deal. Found a car with just under 30k miles that was a 2 year lease.
 








anonymous said:
I have always had a company car also. I just purchased mine on 4 year loan. I bought a used (2 years) off lease. It had ridiculously low mileage and I LOVE it! I could not be happier. I bought it used because of the amount of driving I will do and the areas in which I park in. It made no sense to me to buy it brand new. Good luck! It was so fun to shop for cars.
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I had it the opposite of you. Had to use my own car for calls but got car allowance. However, the pros of driving exactly what you want did not outweigh the cons of your odometer flashing before your eyes and the car losing 80% value in 2 years. Also, while you might be making a small monthly profit from the allowance and putting it aside for future repairs, today's repairs very quickly go into thousands and your car allowance does not cover. I just recently got a company car and the stress level has been drastically reduced.
 
















Recruiter would not specify what the allowance is. What is the big secret? Is it that bad? Typical car allowance is around $700 a month plus $0.60 per mile. What is it there? Would be nice to know when determining what salary I am looking to get.
 
























anonymous said:
You get an allowance and it’s not a great deal unfortunately. I love my car but I am hemmoraging money. Miss my company car and gas card.
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You don’t get a gas card ?
You pay for your own gas then
submit for reimbursement ?
That sucks
Also wait till a tranny goes out,
And new tires will be needed with
all those miles going on your car,
not to mention your car won’t be worth
shit when you have 120,000 miles on it.
 




I thought this was supposed to be a good company. Why do they not provide company vehicles? Are they cheap? I can't imagine having to pay hundreds of dollars out of my own pocket for gas every month.
 




Giving some input here from experience, I’ve had a company cars and now have allowance. I love the allowance and would argue in favor of it any day of the week. Pro tips...

Buy well. Get a good car, used (a few years old) but that has a reputation of going to 200k no problem.

Get a car with good gas mileage.

Do the math here with me:

My current company gives us 650 (taxable) I net about 525.00 per month.

We get .19 per mile reimbursed to cover gas. Based on current gas prices, most of my miles are highway - I net about .08 per mile I drive on average - 3000 miles a month, thats another 240.00 I make driving my own car (which I bought outright) so no car payment.

So after taxes, that’s almost 800.00 a month. I get it, I’ve got to maintain it, tires, insurance, I know. But you still come out ahead if you buy smart and don’t go getting a lease for something expensive.

HERE IS THE BIG PART MOST PEOPLE MISS. That .19 per gallon is a non-taxable business reimbursement. The IRS allows a deduction of 54.5 cents per business mile (which is every mile you drive for work when you are field based - even leaving your house to first call.) Subtract the 19 cents you get reimbursed from the 54.5 and that is a 35.5 per mile UNREIMBURSED business expense that is fully deductible. So as I said earlier, I average 3000 miles per month, 36000 miles per year x .355 = a deduction on your tax return of $12,780.00 that I claimed last year.

I hope that helps. The math works for me and I am happy to be driving what I want (I got a convertible) it’s something I can sell off I wanted if I got laid off or found a job with company car.

Good luck all.
 












anonymous said:
Great that you were able to make money off of the IRS, but not going to be able to moving forward... new tax laws and mileage no longer will be allowed!
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Fuuuuuck. Thanks for the info, even if you are the bearer of bad news. Did a little google searching and it appears you are correct. Shit, that was a great deduction every year. I’ll drive the wheels off my car and think I’ll still end up ahead, but that changes the math a little and not such great thing after all. Thanks Trump.
 




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