[BEACHSCGT500]

I am looking into a new job.

One thing offered by this company is a vehicle allowance.

It will be discussed next week.

I would already be getting a gas card.

What should this include? Meaning how much should I agree on?

I take it this should cover my insurance and upkeep, but would it include the payment of the vehicle also?

Van insurance is about $680/yr.

estimate oil chages for a year (18,000 miles). $200

That would be Oil/Insur about $73/mon.

I assume a van payment to be in the $400-$450 range, is this normally included in a Vehicle Allowance?

Any help would be greatly appreciated.

 

[Orf]

Any help would be greatly appreciated.

When I reimburse my employees for their mileage, I have to adhere to the IRS mandated mileage allowance. I forget what it is now, my secretary - oops, PC term is Administrative Assistant - handles that. She gets updated by our Accountant as to what the current rate is.

I run my vehicles the other way. They are all company cars. I have to claim the personal miles used on my personal taxes. My accountant gets the mileage for the year, and the percentage of business use, and calculates what the correct amount of tax to be paid is. Last year was costly - first full year with the GT500 - which is why I'm thinking about buying them myself outright.

 

[SN8KBYT]

When I reimburse my employees for their mileage, I have to adhere to the IRS mandated mileage allowance. I forget what it is now, my secretary - oops, PC term is Administrative Assistant - handles that. She gets updated by our Accountant as to what the current rate is.

I run my vehicles the other way. They are all company cars. I have to claim the personal miles used on my personal taxes. My accountant gets the mileage for the year, and the percentage of business use, and calculates what the correct amount of tax to be paid is. Last year was costly - first full year with the GT500 - which is why I'm thinking about buying them myself outright.

It is 50.5 cents a mile.

 

[GT500less]

It is 50.5 cents a mile.

+1.

& the 50.5 cents /mile should be tax free.

Our company also gives people on offsite assignments an additional 30.5 cents per mile if they are driving to the offsite from their house. This portion is taxable income though.

 

[BEACHSCGT500]

So most likely they will offer a cents-per-mile deal?

I'll keep that in mind, thanks.

 

[SN8KBYT]

I was just discussing this with my fiance which she takes care of this at her company and we were talking about how the price of gas goes up so quickly anymore how do they figure the rate per mile? None the less the rate per mile never keeps up.

 

[SN8KBYT]

http://www.irs.gov/newsroom/article/0,,id=176030,00.html

 

[BEACHSCGT500]

Okay, assuming still around 18,000 mile a year...

18,000 x 50.5cents/per mile = $9090/year = 757.5/month.

$680 insur $200 oil $450 payment/month only equaled $6280/yr, $523/month.

I'll push for the cents per mile.

 

[Joe G]

Yes Bill - that is a good deal (the cents/mile calculation), but most companies give that OR a fixed stipend + a gas card.

I know this is a little different, but here's what my company does.

I have a choice of 2 plans.

1) Pick a company car (last year was either an Impala or a mini-van - Chrysler I believe). I pay the company a fixed amount each pay period to use that car (they own/lease it for me). This amount covers the personal miles I put on it. Each month I tell them how many miles I drove, and how it splits between personal & business. This covers the IRS's guidelines so that the minimal amount I pay each month is not taxable income as a benefit for my personal miles. I also get a gas card (covers ALL gas used) as well as a Fleet Maint. card which charges all maint (everything from oil change to tires & brakes) to the company.

2) Second choice is a flat stipend that the company gives you. I can buy any car I want - from a 5 year old Taurus, to a GT500. But, the stipend the company gives me covers EVERYTHING - cost of the car that I would buy, all gas/maintenance/insurance etc. It was a losing proposition back with gas was about $2.25/gal - I'm sure I'd lose even more with gas a buck higher.


In short - figure out what you WANT (best case scenerio) to cover all your expenses. Then, when in negotiation, know what you can accept as your lowest offer.

I think there's no one "right" way to do this. Sky's the limit - all they can say is no, right??

Good luck.

 

[HSURB]

Snoop - I don't know what type of work you are in. But do you have to drive a certain type or class of car? Some industries are fairly conservative, and some are over the top.

If it is something you can use for personnal also, it may be worth spending a little of your own cash and getting a little more car that you're actually enthused about driving.

Just my opinion.

HSURB

 

[BEACHSCGT500]

I use a work van.

I found today that it will be a fixed sum that we agree on.

I will already have a gas card.

I now know that others in this dept get from $300 to $700.

That is a wide range, so I had to figure something out.

If I bought a new van it would be about $500-$550 a month payment (no money down), and about $96/month insurance/oil/tires.

So my rough guess would be $600-$650 per month.

I'll see what they say or offer later this week.

 

[Joe G]

Sounds like a good deal Snoop.

Best of luck with the transition.

I know it'll be tough - but change can be good.

 

[BEACHSCGT500]

Sounds like a good deal Snoop.

Best of luck with the transition.

I know it'll be tough - but change can be good.

Thanks Joe, it's starting to work out.

 

[bluestallion]

Keep in mind that car allowances are taxed like a bonus. So a $500 allowance may only be $300 by the time you get the check. Consider this when negotiating your allowance rate.

 

[BEACHSCGT500]

Mine is $500 a month...that I never had before, so a bonus either way.