Author Topic: Value of a company car?  (Read 1716 times)

startingsmall

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Value of a company car?
« on: October 23, 2017, 05:00:52 AM »
I recently applied for a job that offers a company car as a perk.

The position sounds perfect from a life-happiness sort of standpoint, but I'm trying to do my homework so that I'm ready to evaluate the finances of the job if they (hopefully) consider me for the position.

So, I've never had a company car. How does it work? I know people who use their company cars at least some for personal use, so will I be able to get rid of my car? Or is that the exception to the rule and I'll still need to keep my car for personal use? (We're in a rural, car-centric area so having 2 cars is a necessity.)

Even if I need to keep my car for personal use, having a company car for work will still be a HUGE perk. I currently commute 70 miles/day, so shedding that will be amazing. (The job will be working from home with local travel to clients - similar to a drug rep.) If I could sell my car, though, and just use the company car... That could be amazing!!

JanetJackson

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Re: Value of a company car?
« Reply #1 on: October 23, 2017, 08:57:28 AM »
Hey,
When considering the option of taking a company car, be sure to ask to see the fleet vehicle policy (they may have another name for this) and read it IN DETAIL.
I also have the option for a company car, but it does NOT cover travel to-and-from work.  It does, however, cover travel to other locations during my workday.  I must reimburse 22 cents for each personal mile (including to-and-from work each day, as my policy states). 
I am not responsible for insurance or large repairs, but I am responsible for upkeep, which includes washing and cleaning, oil changes, tire rotations, and inspection (and small repairs to pass inspection- wiper blades, headlight adjustment, etc.).  I am also responsible for all gas for the vehicle.
I added all of this up and came to the conclusion that a small and cheap run around vehicle that gets good gas mileage and I use a company car whenever mine is in the shop, which is a nice option to have.
I may reconsider this when my vehicle starts needing more and more money put into it, or I may request a negotiation of the fleet policy at my yearly review, but for now after looking over the policy in fine detail and doing all of the math, I'm sticking with a personal vehicle.
My savings was about $900/yr through this choice, barring massive repair needs.

Good luck!  It's great when companies offer perks to employees.

GetItRight

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Re: Value of a company car?
« Reply #2 on: October 23, 2017, 08:05:24 PM »
A company car would have zero value to me, unless they're buying me a nice restored 60s big block 4 speed convertible. They can keep their crappy new econobox and reimburse me mileage on my personal vehicle at the customary rate. I opt to drive my own vehicle and get reimbursed mileage rather than fly and rent, when the drive is doable in a day.

GuitarStv

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Re: Value of a company car?
« Reply #3 on: October 24, 2017, 09:17:34 AM »
I worked as an exterminator for a while and we got to use company cars (manual pickup trucks actually).  The company gave us a gas card and would do all repairs on the truck.  We were allowed to use the truck for commuting to/from work.  All insurance was covered by the company.  It was a pretty sweet deal honestly.  Given that I didn't own a vehicle at the time, it put off my needing to buy one for quite a while.

NoStacheOhio

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Re: Value of a company car?
« Reply #4 on: October 24, 2017, 09:24:06 AM »
I recently applied for a job that offers a company car as a perk.

The position sounds perfect from a life-happiness sort of standpoint, but I'm trying to do my homework so that I'm ready to evaluate the finances of the job if they (hopefully) consider me for the position.

So, I've never had a company car. How does it work? I know people who use their company cars at least some for personal use, so will I be able to get rid of my car? Or is that the exception to the rule and I'll still need to keep my car for personal use? (We're in a rural, car-centric area so having 2 cars is a necessity.)

Even if I need to keep my car for personal use, having a company car for work will still be a HUGE perk. I currently commute 70 miles/day, so shedding that will be amazing. (The job will be working from home with local travel to clients - similar to a drug rep.) If I could sell my car, though, and just use the company car... That could be amazing!!

If it's similar to the drug rep setup, then it's basically your car. You even get the privilege of paying for it without having any say in how much.

My mother hasn't owned a car for herself in probably 25 years. Maybe 10 or 15 years ago, they started deducting like $200/mo from paychecks for "personal use." Company pays all costs associated with the vehicle (maintenance, gas, insurance, etc.). If that's the setup, drive the shit out of it. They replace when you hit certain age/mileage, though it's never really clear what those are.

Fishindude

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Re: Value of a company car?
« Reply #5 on: October 24, 2017, 09:33:49 AM »
If you have a job where you need to drive around quite a bit, it can be a huge personal benefit.
As mentioned, read the policy before accepting, rules vary.

My company issued trucks for supervisory personnel.   Considering the average work site might be 40 miles away, this is 400 miles per week / 20,000 per year you are not putting on a personal vehicle.   All gas, tires and maintenance is paid for and the driver was expected to keep the truck looking good.   Trucks were for to & from work and business use only.   They have GPS monitoring so nobody abuses the privilege.   We would periodically allow some personal use if they cleared it in advance, but no hauling of family members of friends as we were not insured for that.  The guys always knew they had a good reliable vehicle, and they just kept their tools and gear in them all of the time making things handy.  We estimated the benefit to be worth $6-8,000 when all things are considered; fuel, tires, wear & tear and maintenance, cost of the vehicle, insurance, etc.   They all still had personal vehicles for evening and weekend use, but in many cases they were able to use economical older (paid for) vehicles for this, as they weren't putting much mileage on them.