REMEMBER:

Companies don't do mileage/vehicle reimbursement to benefit the employee.

All valid points.
Since the day I graduated A&M, I have never owned a vehicle and always used a company truck. Sure, it doesn't have ever bell or whistle I'd like, but they have been above average. That's all I know. So I think I'm going to go the company truck route for the first few years and see how that works out. During the first few years in this role, I can see myself driving more and I rather put those miles on someone else's truck and not mine.

Very true comment about how the allowance isn't meant to benefit the employee.

I have a company car for personal use, spouse can drive it - they pay everything (fuel, insurance, maintenance, etc)

I didnt have an allowance choice, but i think Id take the company vehicle if given the chance. It's very convenient, & we take it everywhere as you could guess

birdman said:

---

coolerguy12 said:

---

Dex5511 said:

---

Plot twist…
Spoke with my new manager (director of our business unit) and he said he allows his direct reports to claim mileage AND expense fuel when using the company vehicle allowance.

Now I'm really torn!

---

So you get 62.5/mile and they pay for your gas receipts? Surly I'm reading that wrong, but if not the allowance is a no brainer. Back when I did a lot of site visits I calculated my cost to operate my truck. Factoring in tires, fluids, car washes, and everything I could think of it cost me around 25/mile. Take gas out of it and I bet I would be down to 8-10/mile. I drove my truck all over texas for work and halfway paid for the truck with those miles.

---

Oil change, new set of tires, depreciation, etc. You aren't going to get rich by getting reimbursed for driving your truck for work.

Depends on if you think short term or long term. I guess reimbursements might help you pay off a truck. And when that is done, you will have a used truck with a ton of miles on it.

---

Different strokes for different folks, and I definitely treat vehicles differently than most people. But if OP is getting 62.5 cents per mile and they are paying for his gas then I don't see how you turn that down. At a very conservative estimate it costs 20 cents per mile to operate without paying for gas.

Oil change - 5,000 - $70
Tires - 50,000 - $1300
Air Filters - 5,000 - $75
Serpentine belt - 75,000 - $50
Car wash - 1,000 - $50
Repairs - 10,000 -$1000

Realistically I think I operate my truck closer to 8 cents per mile not counting gas. I do all my own maintenance and have had a very reliable truck which helps.

But worst case at 25,000 miles per year OP would earn $10,500 after paying for tires, maint, etc, but not gas. At my operating cost it would be $13,500. That doesn't even account for the monthly allowance. Do that for 4 years and you have a truck just broken in at 100,000 miles and you have pocketed $40,000 on mileage and another $40,000 on the allowance. You get fired and you have a paid off truck plus $30,000. Or you get an Uber ride home and start car shopping.

I agree with your assessment.

And will also say I disagree with the "companies don't do mileage/vehicle reimbursement to benefit the employee" comment.

Is this true a lot of times? Yes. But there are some companies that absolutely try to sell it as a benefit and to be included in total comp evaluations. I'd argue that if the OP is getting $840/month for a car allowance plus 0.625/mile then it could be seen as a benefit. That employer doesn't have to do both, most do one or the other.

Random question for those of you that use company cars for personal use, do they care if you tow with it? Curious if they would even care but that would be a question I would have. Or maybe not ask and just ask forgiveness. But I couldn't get by without being able to tow stuff.

We used to be able to use it for towing but about 3 years ago they said no towing for us. That's the only thing they've restricted us on with company vehicles in the 10 years I've been here.

coolerguy12 said:

---

birdman said:

---

coolerguy12 said:

---

Dex5511 said:

---

Plot twist…
Spoke with my new manager (director of our business unit) and he said he allows his direct reports to claim mileage AND expense fuel when using the company vehicle allowance.

Now I'm really torn!

---

So you get 62.5/mile and they pay for your gas receipts? Surly I'm reading that wrong, but if not the allowance is a no brainer. Back when I did a lot of site visits I calculated my cost to operate my truck. Factoring in tires, fluids, car washes, and everything I could think of it cost me around 25/mile. Take gas out of it and I bet I would be down to 8-10/mile. I drove my truck all over texas for work and halfway paid for the truck with those miles.

---

Oil change, new set of tires, depreciation, etc. You aren't going to get rich by getting reimbursed for driving your truck for work.

Depends on if you think short term or long term. I guess reimbursements might help you pay off a truck. And when that is done, you will have a used truck with a ton of miles on it.

---

Different strokes for different folks, and I definitely treat vehicles differently than most people. But if OP is getting 62.5 cents per mile and they are paying for his gas then I don't see how you turn that down. At a very conservative estimate it costs 20 cents per mile to operate without paying for gas.

Oil change - 5,000 - $70
Tires - 50,000 - $1300
Air Filters - 5,000 - $75
Serpentine belt - 75,000 - $50
Car wash - 1,000 - $50
Repairs - 10,000 -$1000

Realistically I think I operate my truck closer to 8 cents per mile not counting gas. I do all my own maintenance and have had a very reliable truck which helps.

But worst case at 25,000 miles per year OP would earn $10,500 after paying for tires, maint, etc, but not gas. At my operating cost it would be $13,500. That doesn't even account for the monthly allowance. Do that for 4 years and you have a truck just broken in at 100,000 miles and you have pocketed $40,000 on mileage and another $40,000 on the allowance. You get fired and you have a paid off truck plus $30,000. Or you get an Uber ride home and start car shopping.

---

You're accounting for routine maintenance and gas, but don't forget about that auto insurance!

Buck Compton said:

---

coolerguy12 said:

---

birdman said:

---

coolerguy12 said:

---

Dex5511 said:

---

Plot twist…
Spoke with my new manager (director of our business unit) and he said he allows his direct reports to claim mileage AND expense fuel when using the company vehicle allowance.

Now I'm really torn!

---

So you get 62.5/mile and they pay for your gas receipts? Surly I'm reading that wrong, but if not the allowance is a no brainer. Back when I did a lot of site visits I calculated my cost to operate my truck. Factoring in tires, fluids, car washes, and everything I could think of it cost me around 25/mile. Take gas out of it and I bet I would be down to 8-10/mile. I drove my truck all over texas for work and halfway paid for the truck with those miles.

---

Oil change, new set of tires, depreciation, etc. You aren't going to get rich by getting reimbursed for driving your truck for work.

Depends on if you think short term or long term. I guess reimbursements might help you pay off a truck. And when that is done, you will have a used truck with a ton of miles on it.

---

Different strokes for different folks, and I definitely treat vehicles differently than most people. But if OP is getting 62.5 cents per mile and they are paying for his gas then I don't see how you turn that down. At a very conservative estimate it costs 20 cents per mile to operate without paying for gas.

Oil change - 5,000 - $70
Tires - 50,000 - $1300
Air Filters - 5,000 - $75
Serpentine belt - 75,000 - $50
Car wash - 1,000 - $50
Repairs - 10,000 -$1000

Realistically I think I operate my truck closer to 8 cents per mile not counting gas. I do all my own maintenance and have had a very reliable truck which helps.

But worst case at 25,000 miles per year OP would earn $10,500 after paying for tires, maint, etc, but not gas. At my operating cost it would be $13,500. That doesn't even account for the monthly allowance. Do that for 4 years and you have a truck just broken in at 100,000 miles and you have pocketed $40,000 on mileage and another $40,000 on the allowance. You get fired and you have a paid off truck plus $30,000. Or you get an Uber ride home and start car shopping.

---

You're accounting for routine maintenance and gas, but don't forget about that auto insurance!

---

and, in particular states, registration.
My 2021 f150 was $1200.

You must live in a blue state.

$75 for my son's F-150 here in TX. As well as all my other vehicles.

I am in the group that thinks that the employer does offer the monthly allowance to be about the same $ that they would pay for a company truck + company insurance. I see it as a way of keeping a nice perk but if you wanted a f350 to use for personal use on the weekend, you could have that flexibility.

If I got a $55,000 truck and put $10k down, the payments would be close to $850/month at 3% interest ($200 more then allowance).

$850 x 60 months = $51,000

$51,000 / monthly allowance after tax ($600) = 85 months. Or 7 years to pay off the truck. Not factoring in maintenance or insurance.

Yes, it would be nice to have a truck to build equity in it with someone else's $, but I think I am going with the company truck starting out. Not knowing how many miles I will drive starting out in a new position, I am going to bet that I will drive more miles in years 1-3 vs years 3-5.

Thanks again for all y'all's help and feedback

12thMan9 said:

---

You must live in a blue state.

$75 for my son's F-150 here in TX. As well as all my other vehicles.

---

lol. Has nothing to do with voting habits. It's because my property tax is only $6k on $800k. I also don't have to do emissions until vehicle is 10 years old.

They gotta get money somehow.