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Car allowance????

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Our car allowance and reimbursement is terrible. Some say they can make money on the deal but I’m not sure they are thinking long term. You may make a couple bucks here and there but you will have to pay for a car, insurance(not cheap for commercial use), registration, inspection, new tires, alignment, oil changes, towing if you get stuck, a mechanic to fix things that break, rising cost of gas, etc. The car allowance covers the monthly loan fee and a little left over, but not much. Our reimbursement is pathetic. It should be closer to $0.50 not $0.20. I need an oil change every 6 weeks and I am cranking up the mileage quick. I bought used and will try to run it as long as I can. But now I have 160,000 miles on my car. Not sure how much more I can put on. I did get more on my base to come here but commissions have been non existent. My territory is large but doesn’t have enough volume for what is being asked of me. I have to get a car soon if I am going to stay. This sucks!!!!!
 




Ya, no matter what anyone says getting the company car with the gas card and repai/oil change card is always a better deal than any kind of reimbursement
package. And with company car you usually get a new car every 70K miles or 3 years. Your own car will be run into the ground and not with crap in 3 years.
 




anonymous said:
Our car allowance and reimbursement is terrible. Some say they can make money on the deal but I’m not sure they are thinking long term. You may make a couple bucks here and there but you will have to pay for a car, insurance(not cheap for commercial use), registration, inspection, new tires, alignment, oil changes, towing if you get stuck, a mechanic to fix things that break, rising cost of gas, etc. The car allowance covers the monthly loan fee and a little left over, but not much. Our reimbursement is pathetic. It should be closer to $0.50 not $0.20. I need an oil change every 6 weeks and I am cranking up the mileage quick. I bought used and will try to run it as long as I can. But now I have 160,000 miles on my car. Not sure how much more I can put on. I did get more on my base to come here but commissions have been non existent. My territory is large but doesn’t have enough volume for what is being asked of me. I have to get a car soon if I am going to stay. This sucks!!!!!
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You are so right! Those people are not thinking long term. Did you hear one of them do the math after they sold their vehicle? No. Putting all those miles on and taking the risk that you will have to pay the deductible if you wreck is an enormous risk. I like having a company vehicle because it greatly reduced my stress. Need new tires? No problem. Need new brakes? No problem. Air conditioning needs fixed? No problem .Radio needs replaced? No problem Oil change? No problem. Need windshield wipers? No problem Have a transmission problem? No problem Get a door ding in a parking lot? No problem
 




anonymous said:
You are so right! Those people are not thinking long term. Did you hear one of them do the math after they sold their vehicle? No. Putting all those miles on and taking the risk that you will have to pay the deductible if you wreck is an enormous risk. I like having a company vehicle because it greatly reduced my stress. Need new tires? No problem. Need new brakes? No problem. Air conditioning needs fixed? No problem .Radio needs replaced? No problem Oil change? No problem. Need windshield wipers? No problem Have a transmission problem? No problem Get a door ding in a parking lot? No problem
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Exactly, there’s no comparison, a company car is a way way better
deal than getting car allowance.
 








In the interviewing process. Hiring DM said once expansion is complete, and sales force is up to 220 reps, company will go to fleet cars pretty quickly. Says rule of thumb is a Salesforce greater than 200 is the threshold when companies to go to company cars.
 




anonymous said:
In the interviewing process. Hiring DM said once expansion is complete, and sales force is up to 220 reps, company will go to fleet cars pretty quickly. Says rule of thumb is a Salesforce greater than 200 is the threshold when companies to go to company cars.
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If that were true that would be pretty messed up. Drop a down payment for a car, pay for insurance, register it, drive it a few months, and great news we are going to fleet. Reps would be out thousands of dollars. Wouldn’t fly! Typically what would happen is there would be a period where you could choose fleet car or stay with your own. After spending all that money it doesn’t work out financially unless you have it a few years.
 








anonymous said:
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.
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This person is %100 correct ..... Honda Accord 32+ mpg making $$$$$
 












I agree with everything you have said above, except keep in mind under the new tax guidelines passed this year, if single, you have to be able to claim $12,000 / married $24,000 in itemized deductions before you can get that deduction which means anything less for an individual / married sales rep is a loss.

Thanks tho for your information which is helpful.


anonymous said:
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.
Click to expand...
 




anonymous said:
I agree with everything you have said above, except keep in mind under the new tax guidelines passed this year, if single, you have to be able to claim $12,000 / married $24,000 in itemized deductions before you can get that deduction which means anything less for an individual / married sales rep is a loss.

Thanks tho for your information which is helpful.
Click to expand...
You are 100% correct which means we will get killed not being able to continue claiming the additional deduction on mileage if not exceeding the individual / married itemized annual deductions. Call you accountant to verify... CO VEHICLES ARE DEFINITELY A BETTER DEAL FOR SURE!!!
 








After all the song and dance they gave me a low ball offer. I was told that the commission potential is higher at plan vs my current company. I was asked to take a cut on my base even though I will be required to buy a car. This goes against everything I heard about them being willing to pay for talent. I was so pissed that I simply told them the offer is an insult and I am no longer interested in working for Neurocrine. Thanks for wasting my time!!
 




anonymous said:
After all the song and dance they gave me a low ball offer. I was told that the commission potential is higher at plan vs my current company. I was asked to take a cut on my base even though I will be required to buy a car. This goes against everything I heard about them being willing to pay for talent. I was so pissed that I simply told them the offer is an insult and I am no longer interested in working for Neurocrine. Thanks for wasting my time!!
Click to expand...
I had 2 IVs and then went thru panel IVs, thinking I had a great shot based on feedback that day, but then I didn’t get offer. I honestly think I didn’t get job because I wanted a few percent more than my current base. Not sure if new hires will have same high base as the current sales force
 




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