Companies Giving Truck Allowance - Pros/Cons

[Drycreek3189]

I’ve had a company truck with no strings, a company truck just for company business, and driven my own with a day rate and fuel. I’d rather drive my own because of several reasons. No extra truck in the driveway, no limits on where I go, and I don’t have to drive a Chevy or Dodge.

[mooney_ag]

We have an allowance plan. One of the lowest monthly out of our competitors and customers that I have spoken to. It consists of a monthly allowance plus we can charge mileage at irs rate. They used to play games with the mileage like anything over 1000k per month. Was at half rate. There is an insurance requirement. Vehicle no more than six years old. Vehicle must be four doors and no bed of any kind so it rules out a truck.

1500 was about my break even point ( no depreciation considered) anything over and you were losing at half rate. Now they don't do the half rate so it's a little better. Sure wish the truck was an option for us. Our controller swore we were raping the company and making a bonus off the allowance. So they looked into company vehicles and quickly backed out of it after evaluating the costs. That's when we went to full rate regardless of mileage. My heartburn with the company truck was no personal riders. I would have to drop my kids off Sunday come back home. Swap vehicles to drive the same route plus to south Texas or Houston. Or risk getting fired from we had an accident while they were in the car. Not worth th chance on I35 for me.

Ultimately, the better deal for the employee is the company vehicle without logo of course. Problem with vehicle allowance is most people see it as part of their salary after a while, so it's tough for the employer to make changes or revisions to it.

[mzurovec]

I've had a company truck or been on car allowance for about 10 years now. I've had them with the logo and without, and nearly all have had GPS. In my situation, nearly all were allowed for light personal use and all were Fords with XLT trim or better. I drive about 3,000 miles a month right now, and wouldn't think of getting on the car allowance ($1000/month, fuel card). This is the most generous car allowance I've been offered, but I save a pretty good chunk each year by not owning a personal vehicle.

I realize some companies can get pretty militant about company vehicle policy. Mine isn't, but if it gets that way it would be time to reconsider. IMO, the car allowance has to be crazy good to make the jump.