Hi everyone,
I'm new to the forum but have been following (and trying to practice mustachianism) for some time now. I have a question about my options for work vehicle.
So I started a new job (rural Canadian oilfield - environmental) that requires lots of driving (hwy and off road driving), and I need to be able to haul equipment and tools to and from the field. Estimated yearly kilometers for work of 30 - 40k. My employer offers two options :
1) Use of a company truck and fuel card with no maintenence or insurance costs but can only use it for company work ( I would need a personal vehicle to get around rural saskatchewan).
2) Use a personal truck and recieve a $1300/mo allowance plus the use of a fuel card, but I am responsible for maintence and insurance / registration etc. - I can use all associated expenses as tax deductions.
I opted to buy a one year old used half ton truck. The monthly payments are less than my allowance and financed over 3 years. My plan was to drive the truck into the ground, using the allowance for maintence and increased investments after the truck is paid off.
Now I just recieved a significant cash windfall (income tax return, sale of a small side business and a huge overtime cheque) of $40 000 - $50 000. I'm currently renting a house, investing heavily in indexed mutual funds and the only debt I have is the truck loan (being paid for by my company). I plan to earmark some cash for a house down payment / wedding fund, but I'm wondereing
1) Should I pay off the truck loan, and immediately start investing the allowance.
2) Pay off the loan, sell the truck and start using a company truck.
3) Immediately invest the cash and continue paying for the truck with company allowance. (and buy a good, smart used vehicle for personal use).
Any thoughts on the subject would be much appreciated!