What would you do ??? Company car......

[Todd Z]

Ok,

I do not need stories and other gibberish, Just some help here....



Back round info

I had a company car that the company paid for and was paying for gas and maintaining. i was able to take it from home to work and any other thing work related.

They paid for maintenance, fuel, and insurance.



Last year (Feb) they changed policy and took back all the company cars.

We were offered the cars we were driving at cheep pricing. ( i got the 2005 Malibu for $3K)



I now insure the car, maintain it and pay for gas. We get reimbursed $100.00 a month plus .50 cents a mile driven.



THEY NOW changed policy and are now not paying for the mileage between the office and home. so if I am 20 miles round trip and drive 30 I get 10 back. BUT IF I go directly to a site from home ( as I am now) and drive 19 miles i get ZERO (0) !!!



Here is the problem.......

I have a job for the next 2 years that I am 24 miles round trip from home. the office is 34. SO I will NOT get a red cent back for the next 2 years and I owe about 1K left on the car I purchased !!!!



Here is the question ?



Do you think i should SELL the Malibu and use the ST since it is not much mileage, and pocket the $100.00 a month and if i do any mileage extra ???



OR keep the car and just ride it out ???



Thank you again in advance !!!!



Todd Z

 

[Thomas Rogers]

My advice:



- Get rid of the Malibu if you don't need it, especially since you probably only justified having it because with the old policy you were driving it each month at not much cost (if any) to you.



- The ST is more fun to drive and looks cooler anyway, so see the first bullet.



- Be glad you are still getting the $100/mo. Most people don't get paid to drive back and forth to the office and at least you are getting that. Also, the policy you describe (paying daily mileage driven that is ABOVE the round-trip mileage between home and regular office) is quite common. Like I said, be glad you at least get the $100.



So, ask yourself, do you still want/need the Malibu now that it isn't so cheap to drive?



TJR

 

[David Ponder]

Todd,



How about leaving the Malibu at the office each night if they will allow it, and driving the Trac in each day? Rack up the miles on the Malibu going to different job sites, and get paid for every mile you put on it since it will always be to and from the office.



Dave

 

[Richard L]

Todd,

Assuming they will continue to pay you the $100 plus 50 cents per mile, I would sell the Malibu and use the Sport Trac. I also assume that you will have to pay taxes on the $100 per month vehicle allowance?



You can probably legally file for the unreembursed mileage on your taxes at the federal rate, which I think now is about 44-45 cents ? but check with your tax advisor. Since the $100 a month they give you for the use of your vehicle does not include mileage, you should be able to claim the mileage as an unreembursed work expense.



Again, check with your tax advisor since IRS mileage reembursement is one of those grey areas that uses fuzzy logic. I learned many years ago that if you feel you are entitled to a deduction, then by all means take it. It is not tax fraud and the IRS often looses these cases where their explainations are vague and subject to interpretation. Worse case is that you will have that deduction rejected and you will have to pay the taxes on that amount, plus some small pentalties. They are not going to treat you like a criminal, and you can argue your case with the IRS because their interpretation may not always be accurate.



...Rich

 

[Victor V]

 

[Woppy V]

I'm just in shock that a company pays for your travels! I travel all over god's country and just burn thru tank after tank -- granted real estate won't come to me but that's an impressive system your folks alot. I say preserve the trac and ride the malibu till the wheels fall off.

 

[Les]

The way our system works depends on the need. I use to go to one office everyday. No milage paid. Now I go to two offices and one is about 30 miles away, one way. The company will pay 50 cents per mile, after the first 15 miles and all tolls. They are not paying for me to "go to work" at my regular location, but since they requested I also work in another location, they will pay.



Since they have changed the policy, whatever vehicle you don't drive is still costing you money. Sell the Malibu and just drive the truck.

 

[Gavin Allan]

Boo hoo! They won't pay for your car anymore...! I drive all over God's creation for my job too and the best I can get is $0.25/mile if there isn't a fleet vehicle to drive and if there is money in the budget to pay for my mileage for my Trac.



I guess you could keep the Malibu if you like driving it. We have a few Maibus in our fleet at work, and they are total POC. I would never have bought the Mailbu- they are horrible little cars.



If I am going to drive, I am going to drive something comfortable and decent.

 

[Todd Z]

TJR,

Exactly, If it is not cost effective why keep it, But i don't want to damage the ST !!! :smile0015:



Dave,

The whole point is i am not going to the office it is in the opposite direction !! i avoid the office as much as possible... My job site trailer is a mini office..



Rich,

The 100 is taxed in our paychecks, so no 10-99 afterwords it just inflates our pay...The .50 cents a mile is a non taxable reimbursement. i can not take any reimbursement on the taxes... looked into it....



Gavin,

You need to understand this was a "selling" point they advertised when looking for employees... " company car with expenses paid" They used this a point to lour in employees. They pushed this through out the entire hiring process...

The 2000 Malibu I had as a first car just hit 180K and still running 100% original other then intake gaskets, and brakes, tires, battery... Normal stuff...

The 2005 I have is perfect, 86K miles and Never any major repair... We have 4 2000's and 5 2005's in the company, all good cars...



I prefer to ALLWAYS the drive the truck, but the job sites, start,stops, mileage and other factors are keeping me on the DAM fence on this !!!!



Not to mention knowing the company bills me out at 3-3.5 X my salary is just killing me that they are crying about the lousy $$ I was charging in mileage !!!!!



ARGH !!!



Todd Z

 

[Richard L]

Todd,

I agree that the 50 cents a mile is a non-taxable reembursement if you get it. I am talking about the mileage you put on your vehicle that the company does not reemburse you for. You cannot be taxed on money you did not get, and the company is not paying your mileage to these remote locations...I would consider that a non-reembursed work expense, and so should the IRS, but you may have to keep logs for the IRS incase they raise a red flag.



BTW my company pays $520 per month vehicle allowance and 44.5 cents per mile. Limitations are that the vehicle cannot be over 5 years old or have over 150K miles on it. It also cannot be a luxury or sports car. I can only be a truck, SUV, Van, or 4-door passenger car.



They used to only pay $500 per month, but they would reemburse you for oil changes at 6K miles and new tires every 50K miles. Now that they upped the payment to $520, you have to pay for all of you vehicle maintenance and tires.



...Rich

 

[Thomas Rogers]

Todd Z said:

Not to mention knowing the company bills me out at 3-3.5 X my salary is just killing me that they are crying about the lousy $$ I was charging in mileage !!!!!

I got sick of that too back in 2001 and started my own business and became an independent contractor. Always was able to pay my bills, bought health insurance for our family, worked enough to pay for a nice vacation that year (that I took during a time when I wasn't getting paid, of course). It all worked, but working for yourself in this way is almost like having two jobs. Sure, you can make twice as much money...but, you work twice as hard.



TJR

 

[Todd Z]

Rich,

Many company's do that here, thats a good deal, But my company does not want the insurance liability any more and of course the accounting dep said this will save money.... For them.....



Tom,

ohh I hear ya, but with the economy and honestly I cant "screw' people and unfortunately thats the only way to stay alive in a construction field... ( i know, I know, Not where you live).... We do have private inspection firms, but they are not doing the large jobs as i am...



I just looked and the car in good condition is worth $6-7K private resale.... i think i would sell it for $5K... pocket 2K and walk away.....



Still on the fence..... but 2K pays for the last room renovation i need to do to my house.....



this SUCKS !!!!:smile0003:



OR I could sell my 04 adren, ( give the 03 to rachel) and sell the Malibu and get a gen2 !!!! :smile0006:



Todd Z

 

[gary s]

WOOOOOOOOOOO NOW,

sell the adren ????????????????

what are you crazy :smile0005:



company cars, nuff said :banana:



sell malibu barbie and keep the tracs



my fleet expertise is available on a consultant basis :smile0014:

 

[Robert Caffyn]

Todd, since you own the Malibu, there has to some kind of tax write of you can get that would help offset the expenses. You should be able to deduct gas, maintainence, insurance costs, tolls, etc. You may not get a mileage deduction as they are paying you something, right?

Ya know what? Hang on to the Malibu, it probably gets better mileage than the ST, use whatever synthetic fluids in it and extend the service intervals as far as you can. Then feel free to beat the hell out of it then sell it to some car-hungry teenager and let him finishe destroying it! BC

 

[Johnny O]

Tax implications are probably why the company changed policy. I am self-employed and use the Trac plus another vehicle (Focus wagon) for work purposes, the other vehicle almost exclusively for work, I leave it at the office and it only comes home to get washed or change the oil. I cannot deduct commuting miles but miles doing bids, etc., after I arrive at work first are deductible. My last stop each day is at the bank, which is about 5 blocks from my house, so essentially half my commuting miles are deductible. {;-D



I reimburse my employees currently at 0.30/mile. One may claim the difference between the 0.30 and whatever the IRS's current max is, 0.50 I think, but I think it only does you good if you are able to itemize anyway.



I'd keep the Malibu if only because it saves miles and wear and tear on the Sport Trac. That's why I got the Focus and the POS Neon before that. Less miles on my leased Trac(s) and besides that the trucks were killing me on gas driving between my two offices almost every day.

 

[Mark K 2]

I'd rather drive to a vehicle to work that I enjoy driving even if I'd have to pay a little out of pocket. Pocket the $100 and drive the ST. That's still a better deal than 99.5623% of Americans currently get.

 

[Kevin Palmer]

Well,,, it really does come down to numbers.



Though I do not know the numbers, you need to get a clue as to what the average over-all cost of driving the Trac will be. It will be higher than the Malibu if for no other reason that you have the 4 wheel drive application. Plus, suspension parts are more expensive.



You could get the lowest rate insurance on the Malibu to cover others and you medical, but not the vehicle.



Me personally, I would eat the cost of driving the Trac as I simply enjoy being in a vehicle that I enjoy. I feel good driving my SUV to work every day.



Like you, I get reimbursed for fuel and it is a wonderful thing. It would REALLY suck to lost that. I get nearly $11,000 a year of tax-free money in the form of Perdium and reimbursed gas. Though I shouldn't, I have come to rely on that money.



I feel for you. That .50 does not sound like much until you are no longer getting it...

 

[Tom Schindler]

Keep the Malibu. It gives you the right to make fun of the Toyota's that crap out long before the Chevy does.





Tom

 

[Todd Z]

LOL Tom :smile0015:



I am leaning toward keeping it..... More then likely will, Just looked at all the stuff in the trunk of the Malibu and realizing it will have to be in the ST every day, Kinda ruins the bed room and i don't want stuff sitting on my seats all the time...



As for deductions for the Malibu, none can be taken at all..... I looked into all of that when i first got the car...



Thanks all.....



Todd Z

 

[TomT]

Todd. If I was you I would go to the boss and demand they give you a Ferrari to drive with an unlimited expense account or your going to walk. Give me your boss' phone number and I'll be happy to negotiate a deal for you. :smile0012: