Author Topic: Job offer - better pay but need a car  (Read 1389 times)

Alf91

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Job offer - better pay but need a car
« on: June 11, 2017, 12:43:07 PM »
I've been offered a job that pays approximately $7000/year more in salary than my current position. Nice, right? Except that my current job doesn't require a vehicle so I don't have one. This new job involves regular travel outside of the city (ie once a week).

When I consider all of the costs involved with owning a vehicle (I have owned them before), I don't know if the increase in salary makes up for it! Insurance (mine would be approx $150/m), gas, parking, maintenance, not to mention the actual purchase price of a car. I have always bought used, relatively inexpensive cars before for a couple of thousand dollars, but might consider something newer/more reliable.

Then I thought, if I only need the car once a week, would it make more sense to do some kind of car-share? There are programs like this here, where you just pay for it when you need it - I think the cost is about $20/day plus gas. Not sure if the company would be comfortable with this or if they would expect me to own a car.

Another thing to consider is that the company would reimburse me for mileage.

I am in the position where I need to either accept or decline the job offer, OR negotiate the salary. I'm not sure what increase in salary I would need to see for it to be worth the cost of car ownership though. Help!
« Last Edit: June 11, 2017, 03:16:52 PM by Alf91 »

Linea_Norway

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Re: Job offer - better pay but need a car
« Reply #1 on: June 11, 2017, 01:23:01 PM »
Cars can he pricy. Think also about maintenace when it breaks down. And maybe parking issues. Car sharing is not a dumb idea. I think it is completely natural to let your boss pay for your mileage. Can you negotiate with your boss for paying you for a weekly rental car?

Davids

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Re: Job offer - better pay but need a car
« Reply #2 on: June 11, 2017, 02:10:19 PM »
See if the company would instead cover cost of rental for one day a week. Depending on how many miles you have to drive the company may save money for covering the cost of your rental rather than mileage.

Smokystache

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Re: Job offer - better pay but need a car
« Reply #3 on: June 11, 2017, 03:01:43 PM »
Why do you need the car? Is this just to get to Point B and no one cares if you show up in a 2006 used Prius or someone even drops you off? Or is it to go pick up a prospective client? Are you going to the same place or different places each week. Is it just getting to Point B and back home or is it a series of stops?
What, if anything, are your costs to park the vehicle at your residence?

It's a little unclear from your post if this job pay $7000 more than your current job or a total of $7000. If this is $7000 more, then I can't imagine that it isn't worth it - even with crazy high parking costs.

You might check out this thread: https://forum.mrmoneymustache.com/share-your-badassity/the-$3700-prius-experiment/

Alf91

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Re: Job offer - better pay but need a car
« Reply #4 on: June 11, 2017, 03:15:48 PM »
Why do you need the car? Is this just to get to Point B and no one cares if you show up in a 2006 used Prius or someone even drops you off? Or is it to go pick up a prospective client? Are you going to the same place or different places each week. Is it just getting to Point B and back home or is it a series of stops?
What, if anything, are your costs to park the vehicle at your residence?

It's a little unclear from your post if this job pay $7000 more than your current job or a total of $7000. If this is $7000 more, then I can't imagine that it isn't worth it - even with crazy high parking costs.

You might check out this thread: https://forum.mrmoneymustache.com/share-your-badassity/the-$3700-prius-experiment/

Thanks, I will look at that thread.

It's a $7000/year increase. ie, my current salary is $50,000, this new job would pay $57,000.

No cost to park at home, or at work location.

Doesn't matter the 'look' of the car so long as it's reliable. Basically I would be working out of the main office that is in the city I live in, but need to drive to see clients in surrounding areas about once a week.

Rubic

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Re: Job offer - better pay but need a car
« Reply #5 on: June 11, 2017, 03:34:06 PM »
Another input to consider.  Depending on your marginal tax rate, your $7,000
salary increase is probably worth less than $6,000 net, e.g. at 15% tax rate

$7,000 * 85% = $5,950

Smokystache

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Re: Job offer - better pay but need a car
« Reply #6 on: June 11, 2017, 04:19:02 PM »
Why do you need the car? Is this just to get to Point B and no one cares if you show up in a 2006 used Prius or someone even drops you off? Or is it to go pick up a prospective client? Are you going to the same place or different places each week. Is it just getting to Point B and back home or is it a series of stops?
What, if anything, are your costs to park the vehicle at your residence?

It's a little unclear from your post if this job pay $7000 more than your current job or a total of $7000. If this is $7000 more, then I can't imagine that it isn't worth it - even with crazy high parking costs.

You might check out this thread: https://forum.mrmoneymustache.com/share-your-badassity/the-$3700-prius-experiment/

Thanks, I will look at that thread.

It's a $7000/year increase. ie, my current salary is $50,000, this new job would pay $57,000.

No cost to park at home, or at work location.

Doesn't matter the 'look' of the car so long as it's reliable. Basically I would be working out of the main office that is in the city I live in, but need to drive to see clients in surrounding areas about once a week.

Ahh, my mistake. Your initial post about salary was really clear and I was trying to make it into a monthly thing. Now I can see how this is much closer to a toss-up in terms of costs vs. increased salary.

In my opinion, this is close enough that it comes down to the other big factors:
- Do you like your current company? Current boss & co-workers? How do they compare to the information you have about the new job?
- Would this new company/position have better/worse opportunities for advancement (assuming you'd like to advance)?
- Would driving out to see clients be a nice change of pace or something you think you'd hate to do?

- Would getting a car provide any new benefits. Perhaps you could enter your car into a ride-sharing program since you know that you will use it rarely and you could recoop some of your costs.


Alf91

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Re: Job offer - better pay but need a car
« Reply #7 on: June 11, 2017, 04:34:13 PM »
Ahh, my mistake. Your initial post about salary was really clear and I was trying to make it into a monthly thing. Now I can see how this is much closer to a toss-up in terms of costs vs. increased salary.

In my opinion, this is close enough that it comes down to the other big factors:
- Do you like your current company? Current boss & co-workers? How do they compare to the information you have about the new job?
- Would this new company/position have better/worse opportunities for advancement (assuming you'd like to advance)?
- Would driving out to see clients be a nice change of pace or something you think you'd hate to do?

- Would getting a car provide any new benefits. Perhaps you could enter your car into a ride-sharing program since you know that you will use it rarely and you could recoop some of your costs.

I do like my current job/boss/coworkers. I don't know any of the people at the future job...
This new position IS an opportunity for advancement. Current position does not really offer advancement unless I take my boss's position and I doubt that will happen.
Hmmm good question...I don't dislike driving, unless it's winter...def something to think about.