Company Car vs. 650$

[Anonymous]

which do you think is better?...are we getting totally screwed with the stipend as opposed to the vehicle w/ the abbott contract?

[Anonymous]

I'd rather be making a payment and gaining equity. I take care of my ride and I guess if I was going to beat the shit out of it I'd want a company rig. For $650 a month you can get a brand new Audi or BMW and park it next to the big pharma reps in their Impalas or what ever utilitarian pos they get. $650? You can probably make payments on a Hummer with that and since you're getting that gas card...

[Anonymous]

I'd rather be making a payment and gaining equity. I take care of my ride and I guess if I was going to beat the shit out of it I'd want a company rig. For $650 a month you can get a brand new Audi or BMW and park it next to the big pharma reps in their Impalas or what ever utilitarian pos they get. $650? You can probably make payments on a Hummer with that and since you're getting that gas card...

get something nice, but modest. remember- you will be pulling up next to your doctor in his Honda civic at times.

[Anonymous]

What kind of company cars do you folks get when you were managing Buffalo wild wings, doing landscaping and selling grillz at the mall?

[Anonymous]

Nice one, the education paid off for you.

[Anonymous]

this may sound stupid, but I would almost prefer a company car over the $650...just the hassle of buying a car (in my case i have to sell my old one and buy a new one b/c i had a truck) and then if i get rolled over or end up with another company I have to sell the new one. not complaining at all, i'm estatic about this job, but just a lot of headache.

and somone made a comment about building equity by owning your own...maybe i'm an idiot, but i've never built equity by owning a car...I always lose my ass when I sell one!...just my opinion!

[Anonymous]

this may sound stupid, but I would almost prefer a company car over the $650...just the hassle of buying a car (in my case i have to sell my old one and buy a new one b/c i had a truck) and then if i get rolled over or end up with another company I have to sell the new one. not complaining at all, i'm estatic about this job, but just a lot of headache.

and somone made a comment about building equity by owning your own...maybe i'm an idiot, but i've never built equity by owning a car...I always lose my ass when I sell one!...just my opinion!

Buy something like a preowned Cammry or Maxima for much less then brand new. Remember, insurance, maintence etc come out of the 650.00. I can see the smart ones think that 650.00 a month can lease you a BMW or whatever but that's just the payment. A lease is only good for 10k-12k miles per year anything over you get chrged for. No wonder people get themselves in trouble with finances. Anyway you slice it a company car is a better option, everything is covered.

[Anonymous]

the other thing to consider is your territory; are you going to be parking in hospital parking garages with tight spots so that your car gets all dinged up, or will you be pulling into outside lots with plenty of room to park. If you are into driving enough to crave that bmw or audi, how are you going to feel looking at all the dents, scrapes, etc. it will be subject to on a daily basis?

[Anonymous]

there is no gps in your own car.....

[Anonymous]

With 650/mth you can always tell your boss to get out.

[Anonymous]

there is no gps in your own car.....

True, but you can buy a Garmin at Costco for under $300. Not as sleek but it does the job.

[Anonymous]

I think the poster meant that we can't have our every move tracked in our own vehicles as there is no company gps. I don't know if this is true or not, but I don't like the idea regardless....

If you don't go over the top and have a newer car, the 650 is enough for car payment, insurance and the minimal maintenance you should have on a new car. The mileage is the biggest problem. I'm hoping that one year won't destroy my car but who knows?

[Anonymous]

I'd rather be making a payment and gaining equity. I take care of my ride and I guess if I was going to beat the shit out of it I'd want a company rig. For $650 a month you can get a brand new Audi or BMW and park it next to the big pharma reps in their Impalas or what ever utilitarian pos they get. $650? You can probably make payments on a Hummer with that and since you're getting that gas card...

Remember, that $650 is TAXABLE income! So figure you can take home about 70% of it or $455. A $15,000 car is going to require $300 month payment (5 years, nothing down, assuming you paid $15K total w/tax, title, license) and the rest, $155, will mostly go towards insurance--you better save the rest for oil changes, tires, brakes and other wear out items not covered by your warranty (which you better buy the best one possible!). Me, I'd buy a Toyota Scion XB--great value retention, style, and space.

Otherwise, I would rather chose a company car--no worries then!

[Anonymous]

I think the poster meant that we can't have our every move tracked in our own vehicles as there is no company gps. I don't know if this is true or not, but I don't like the idea regardless....

If you don't go over the top and have a newer car, the 650 is enough for car payment, insurance and the minimal maintenance you should have on a new car. The mileage is the biggest problem. I'm hoping that one year won't destroy my car but who knows?

ATTENTION: There is no company GPS! They can tell if you are working or not by other means (when you enter calls, how many call cards you get signed, and how you interact with you customers on ride-a-longs i.e. do you know them?) which are more reliable.

[Anonymous]

Remember, that $650 is TAXABLE income! So figure you can take home about 70% of it or $455. A $15,000 car is going to require $300 month payment (5 years, nothing down, assuming you paid $15K total w/tax, title, license) and the rest, $155, will mostly go towards insurance--you better save the rest for oil changes, tires, brakes and other wear out items not covered by your warranty (which you better buy the best one possible!). Me, I'd buy a Toyota Scion XB--great value retention, style, and space.

Otherwise, I would rather chose a company car--no worries then!

Because it is taxed, you can write off your milage on your taxes....this should be a big write off.

[Anonymous]

I think the poster meant that we can't have our every move tracked in our own vehicles as there is no company gps. I don't know if this is true or not, but I don't like the idea regardless....

If you don't go over the top and have a newer car, the 650 is enough for car payment, insurance and the minimal maintenance you should have on a new car. The mileage is the biggest problem. I'm hoping that one year won't destroy my car but who knows?

Oh! I didn't know companies did that. Doesn't matter if you're honest about where you've been I guess, but no one likes to feel like they're being spied upon.

[Anonymous]

Because it is taxed, you can write off your milage on your taxes....this should be a big write off.

Do you know this for sure? This usually only occurs when you are being reimbursed for gas--the company provides you a gas card so the only thing (I think) you could write off would be the oil changes, and other maintenance items. There is also deprecation to consider...I'd still rather have the company car...less headaches.

From IRS.Gov:
Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

* 50.5 cents per mile for business miles driven;
* 19 cents per mile driven for medical or moving purposes; and
* 14 cents per mile driven in service of charitable organizations.

[Anonymous]

* 50.5 cents per mile for business miles driven;


OOHHHH wow! Increase the writeoff per-mile by two whole pennies as the price of gasoline increses in whole dollars. Brilliant.

[Anonymous]

Do you know this for sure? This usually only occurs when you are being reimbursed for gas--the company provides you a gas card so the only thing (I think) you could write off would be the oil changes, and other maintenance items. There is also deprecation to consider...I'd still rather have the company car...less headaches.

From IRS.Gov:
Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

* 50.5 cents per mile for business miles driven;
* 19 cents per mile driven for medical or moving purposes; and
* 14 cents per mile driven in service of charitable organizations.




Yes, you can write off mileage and the maintenance expenses, but obviously not the gas expense. Be sure to keep an in-depth daily log and save all oil change receipts as 2nd party documentation of mileage

[Anonymous]

The car allowance is not taxed...it should be classified under a different category on your pay statement. It's not straight compensation, so the company can use that car allowance as an non-payroll expense so it won't be taxed.
But come tax time, you do have to declare the car allowance when you're claiming either a) miles driven, or b) the cost of maintenance on your vehicle. I tried to do both, but was told one or the other. Bottom-line is that, on average, you're going to drive far more in a month than what $650 will cover, so keep track of your miles closely (business-only), and then have it ready for a nice write-down at tax time.

[Anonymous]

650 is taxed says it in the offer letter dummy

[Anonymous]

As posted above, the car allowance is taxed. So consider it income.

If you write off mileage you do not get to write of maintenance. One or the other. Also if you depreciate your car the first year, you can not write off mileage and you must depreciate the length of the time you own the car.

If you put on 15K miles per year or more, I would write off the mileage and not worry about the rest.

[Anonymous]

If that's the case, then you don't have to declare the $650/mo. when factoring in miles driven in doing your individual taxes. If it's considered part of your salary, it's salary, and not any part of an expense reimbursement.

I'd ask some thorough questions of a tax specialist on this.

[Anonymous]

You do not have to declare the $650. No 1099 and yes I talked to the IRS about it. I have always written my car off this way.

[Anonymous]

The car allowance is not taxed...it should be classified under a different category on your pay statement. It's not straight compensation, so the company can use that car allowance as an non-payroll expense so it won't be taxed.
But come tax time, you do have to declare the car allowance when you're claiming either a) miles driven, or b) the cost of maintenance on your vehicle. I tried to do both, but was told one or the other. Bottom-line is that, on average, you're going to drive far more in a month than what $650 will cover, so keep track of your miles closely (business-only), and then have it ready for a nice write-down at tax time.

The $650 IS taxed, I just recieved my paperwork and it stated that it was taxed. Did you get something different than me.

[Anonymous]

I have an allowance now at a different company. In previous years, before I was laid off, I had a company car. Let me just say from experience, THE COMPANY CAR IS A MUCH BETTER DEAL!!! I would not care if it was a yugo. With the allowance, you have to take care of maintenance, oil changes etc. Not to mention you are depreciating it DAILY based on the wear, tear and mileage you are putting on it. You take the hit for that! There is no tow if you breakdown, no paid rental while your car is n the shop. Not to mention, parking in lots and decks ALL DAY LONG your car gets beat to hell and back with dings and scratches!

[Anonymous]

Buy something like a preowned Cammry or Maxima for much less then brand new. Remember, insurance, maintence etc come out of the 650.00. I can see the smart ones think that 650.00 a month can lease you a BMW or whatever but that's just the payment. A lease is only good for 10k-12k miles per year anything over you get chrged for. No wonder people get themselves in trouble with finances. Anyway you slice it a company car is a better option, everything is covered.

Here's an idea for you: Why not take the money, buy a van, live in it and save on rent? You could park it in the hospital parking lot at night. Think of the $$ you and your family would save.

[Anonymous]

Here's an idea for you: Why not take the money, buy a van, live in it and save on rent? You could park it in the hospital parking lot at night. Think of the $$ you and your family would save.

I recommend a Huffy or Schwinn. You could have a cart attached to the back with all your samples..etc. Spraypaint the logo of your best product on it's sides. Also, don't forget a fanny pack. Wear a short sleeve white t-shirt and a tie. I would suggest a nice clown horn and baseball cards in the spokes as well.

Trust me, this is outside the box, the docs will recognize you every time. Think about it, you have a solid gimmic, pay nothing for gas, get a workout every day, and you get 650 per month extra.

Now, here is the genious in the plan. Still take your gas card and fill up cans of gasoline. You can also sell gas on the side for $1 off per gallon.

When you do a lunch, be sure to take half of it home for dinners and lunch for the week. BAM, no meal expenses.

See buddy, you are already up to over $80K per year on my plan. I should be CEO.

[Anonymous]

one more thing!!
If your boss is a midget, like mine, all you need is a baby seat for ride a longs

[Anonymous]

Remember, that $650 is TAXABLE income! So figure you can take home about 70% of it or $455. A $15,000 car is going to require $300 month payment (5 years, nothing down, assuming you paid $15K total w/tax, title, license) and the rest, $155, will mostly go towards insurance--you better save the rest for oil changes, tires, brakes and other wear out items not covered by your warranty (which you better buy the best one possible!). Me, I'd buy a Toyota Scion XB--great value retention, style, and space.

Otherwise, I would rather chose a company car--no worries then!
Use AMSOIL in your engine. The new 0w-30 oil is awesome. Change oil once/year or every 30,000 miles. Right now I change every six months. Save me money/gas (improved gas mileage).
Just FYI.

[Anonymous]

The car allowance is not taxed...it should be classified under a different category on your pay statement. It's not straight compensation, so the company can use that car allowance as an non-payroll expense so it won't be taxed.
But come tax time, you do have to declare the car allowance when you're claiming either a) miles driven, or b) the cost of maintenance on your vehicle. I tried to do both, but was told one or the other. Bottom-line is that, on average, you're going to drive far more in a month than what $650 will cover, so keep track of your miles closely (business-only), and then have it ready for a nice write-down at tax time.

Call a CPA. My relative, aka DAD, has done taxes like this for 45 years, yes, he is old, and the $650 is taxable income no if's, and's or but's.

[Anonymous]

Call a CPA. My relative, aka DAD, has done taxes like this for 45 years, yes, he is old, and the $650 is taxable income no if's, and's or but's.

a few things - and i have had alot of both with alot of companies - the company car is best financially unless you have a paid off vehicle. Run it in a wall and do not worry. I have bought nice cars with allowance and they depreciate and get parked in a million lots with old folks and gimps. Last, 650 is only income if they give it to you that way - i have had it sent with expenses which makes it non w-2 income - and that is legal. Tax guy - do not argue this as each is different - but if taxed and w-2 it sucks for sure.