I've used the car allowance for different types of cars. I have bought a used Camery which with pymt and insurance was about $400 month and pocket $300. I have leased a BMW 330 for $319month with insurance of $80 a month, and currently I bought a 2 year old Mercedes 500 SL sedan for $700 and my insurance is $125 a month-- so I just write off all the insurance on my taxes. You can either drive a luxury car or you can get a good used economy car with good gas milage and pocket some money-- its up to you.