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Company car vs money + .cents per mile

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anonymous

Guest
Please give me your thoughts about the above topic

What's a good deal ( free car would be great ).

Tax advantage/ what's good a offer 625.00 per month .22 per mile is that fair.

We're temp workers after a year putting 25,000 miles on a car then done let me know "WHATS GOOD"

Thanks
 




Take the Car Allowance every time. You can write off on your taxes the difference in mileage from .22 to IRS allowed .55 (I think that is the current amount). Company cars are only going to reduce your income because they are going to charge you 150.00 per month to use it. Car allowance is going to get you an additional 1000/1200 per month depending on the size of your territory.
 




anonymous said:
Take the Car Allowance every time. You can write off on your taxes the difference in mileage from .22 to IRS allowed .55 (I think that is the current amount). Company cars are only going to reduce your income because they are going to charge you 150.00 per month to use it. Car allowance is going to get you an additional 1000/1200 per month depending on the size of your territory.
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NO. If the territory is huge, its not a good move. Small territory, YES.
 




Take the money: If you can get a car 3 to 5 years old with around 40K miles, you will make a fortune.
A few years ago I had a Camry with 50K miles cost me $12K, used it for 2 1/2 years. They gave me around $21K in remibursements and I sold the car for $8K with 116K miles on it.
 




anonymous said:
NO. If the territory is huge, its not a good move. Small territory, YES.
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I'm going to disagree with you on that idea. Larger territory is fine. Mileage is better on the highway. Tires last longer due to less starting and stopping. Engines last longer on highways. And believe it or not, there are fewer wrecks on highways than within the cities and towns (no one runs red lights or rolls stop signs on highways). That said, accidents on the highway do cause more damage, typically. And consider this as well, more mileage means more reimbursement and more tax deduction due to the difference in the rate reimbursement. Thus, while the miles can add up faster on the vehicle, they are more efficient miles than in the city and the amount of reimbursement is significantly more. A higher reimbursement means you can invest in a better vehicle later on or do as a previous poster and sell the vehicle for no loss.
 




Depends on Reimbursement program. I used to work for a dental company that used Runzheimer. Stay away!! You have to buy a brand new car every 4 years!! You know as well as I do, that buying a new car means losing money as soon as you drive off the lot. If you don't buy a new car every 4 years, you don't get the reimbursement. Plus, the mileage portion is like 12 cents a mile! Crazy! I don't care how great of a company, if they use Runzheimer, it is a NO GO.
 




anonymous said:
Depends on Reimbursement program. I used to work for a dental company that used Runzheimer. Stay away!! You have to buy a brand new car every 4 years!! You know as well as I do, that buying a new car means losing money as soon as you drive off the lot. If you don't buy a new car every 4 years, you don't get the reimbursement. Plus, the mileage portion is like 12 cents a mile! Crazy! I don't care how great of a company, if they use Runzheimer, it is a NO GO.
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Thanks for posting this.
 








Another option is work out a monthly deal with your local enterprise for a monthly rate. Typically with your allowance & gas mileage you come out ahead each month without wear and tear in your personal car. I did this with my last contract for 1 1/2 years.
 




anonymous said:
Another option is work out a monthly deal with your local enterprise for a monthly rate. Typically with your allowance & gas mileage you come out ahead each month without wear and tear in your personal car. I did this with my last contract for 1 1/2 years.
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great point.
also, you only need to rent a car from M-F (assuming you have your own car), so you can save further there.
 




Don't listen to everyone. I've had it both ways - company vehicle and using my personal vehicle with a car allowance and mileage. It all depends on your personal circumstances. First of all, don't count on "writing off the difference" of your mileage. If you take the standard tax deduction, this would not apply to you. If you itemize, you need to have enough items to be higher than the standard deduction. So, if you own your home, don't have any kids in daycare and don't own a business, you are probably taking the standard deduction. If you get in a wreck in your personal vehicle by sliding off the road and hitting a telephone pole, guess what? That is considered YOUR fault because you hit an item that was not moving. It does not matter if there was ice. And then, your personal insurance goes up for maybe 3 YEARS. You will keep paying that higher premium after the job has ended. No so with a company vehicle. And what happens when you need major repairs? Generally speaking, I think the company vehicle is the way to go. There are less worries. A company vehicle was once the standard. Now companies are cutting expenses and putting the burden on the employees.
 












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