Companies Giving Truck Allowance - Pros/Cons

[brunner]

We are currently considering options of going to a truck allowance for our outside sales guys.

We currently provide trucks that can be used for personal use “within reason”.

Some of the trucks ages and mileage are about due to upgrade but the conversation of giving truck allowance for sales guys ahas come up.

What is the typical structure for something like that?

Pros?

Cons?

Mileage?

Insurance?

Year/Mileage restrictions upon purchase?

School me on this as this is uncharted territory for me.

TIA!


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[brunner]

Bump


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[TX03RUBI]

I’d rather be paid mileage than truck allowance. In my current situation I’m in a company truck. It is logo’d and has a tattle tale on it. I’d rather be in a personal truck with mileage. In previous roles I was in a company truck that they didn’t monitor the tattle tale, and it was unmarked. In that case I’d rather be in their truck. Right now I HATE driving a logo’d truck, and I’m not a fan of someone texting or calling anytime I hit 3-4 mph over the speed limit to pass.

[SHSU18]

Im in outside sales and we get an allowance and mileage. A company truck would be nice but i cant complain.

[Mike]

I have had both the above scenarios. I was in a company SUV or truck for 17 years. It was nice when unmarked but the rolling billboard is a PITA. Both times were it's a "it's your vehicle, treat it as your own" and I was able to pull trailers with a letter from the VP.

I now have my own truck and get an allowance and I love it. I can let my wife or boys drive it and that makes it simple. I do have magnet signs for plant entrance and my company does not want us driving around with decals due to the vehicle targeting. My last company, the targeting became an issue. Huge company, lots of insurance.

I do like being able to get what I want and set it up how I like. I think you need to make sure you are willing to pay a fair amount. I think you can buy fleet trucks for less money but you will have the added insurance and maintenance cost.

[em12]

Outside sales here:

We get a monthly stipend and mileage.
To receive the full stipend car had to be 20k new and less than 5 years old. We use the app Motus to record and submit miles and for payout. I have used motus and Runzheimer, pretty similar if I remember right.

I’ve had a company vehicle and done it this way- I come out ahead this way in my opinion

[Easttxbowman]

Where I work we have the option for either an allowance or less allowance plus mileage.

It depends on the employee which option they choose. There is a break even milage number where each plan is beneficial. If you travel over that mileage marker each month it pays to get milage plus smaller allowance likewise if you don't meet the monthly threshold its better to take the straight allowance.

Its somewhere just over 2k a month

[Dale Moser]

I prefer to have my sales guys in their own truck, with a vehicle allowance. They take care of their own stuff better, complain less, and take care of their own maintenance.

I drive a company truck because it's my company and that's how I want to do it.

[TX03RUBI]

I prefer to have my sales guys in their own truck, with a vehicle allowance. They take care of their own stuff better, complain less, and take care of their own maintenance.

I drive a company truck because it's my company and that's how I want to do it.

Just straight allowance, or allowance plus fuel, allowance plus mileage etc?

[Dale Moser]

Just straight allowance, or allowance plus fuel, allowance plus mileage etc?

Allowance plus fuel, sorry.

[bowhunter_2]

I work for a smaller single owner construction company and we get a straight vehicle allowance and a gas card. We are required to have a pick up and that is the only real stipulation (within reason).

[Greenheadless]

I prefer the company provided truck.

If you are doing it correct and per the IRS rules, your employees should be paying the company back for their personal mileage. I would research what is defined “personal mileage” if you do not already know.

If you go the allowance route, you will need to require them to carry your company on their insurance policy and put a max age/mileage rule in place or it will open you up to liability.

The owner of the vehicle will NEVER break even with an allowance/mileage plan unless their allowance is HUGE.

[Daddy D]

I work for a smaller single owner construction company and we get a straight vehicle allowance and a gas card. We are required to have a pick up and that is the only real stipulation (within reason).

This is how we operate. We are running 8 trucks in the field. All gas (Shell card) receipts must be turned in. $550 per month for the truck allowance.

[HighwayHunter]

Being able to use your own vehicle with allowances is nice because as the employee you can pocket some of the money occasionally (if not traveling too much). However it’s better long term to have the company truck. I can use my company truck now for small things if need be, but I park it for the weekend once I get home. I’d stick with company trucks.


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[JDog83]

In outside sales, allowance of 1000 plus fuel. Only route I would go.