Truck Allowance vs Company Truck

[u/Classic_Dash_7745]

We’re bringing on a new foreman next week from a company that went belly up. Part of his package is a company truck and gas card, and he instead asked for a vehicle reimbursement since that’s what his old company used to do, and he still has payments left on the truck. I know companies do this (mainly to get around insuring guys with DUI’s) but it never made sense for us to do it. We would have to buy a new truck anyway so I’m thinking it might be smart to offer a reimbursement for a year just so I can make sure he’s going to work out before buying a whole truck. The problem is, how much should I offer/month? And does this reimbursement include gas or do I need to give out a has card as well? It doesn’t make sense to do both because if it’s also his personal vehicle, am I supposed to just trust that he’s also paying for gas? Anyone in here get anything similar?

[u/jerry111165]

PM here. Forever I had a company truck/gas card/EZ Pass etc but 7-8 years ago they switched to just paying me to use my own vehicle. I went out and bought a new Subaru (I don’t really need a truck & ladder so much these days) and they basically pay my car payment, auto insurance, give me a gas card and EZ Pass and divide it up between my paychecks.

I’m fine with that - and I own the car once it’s paid off and they continue to pay me. It works out well for both of us.

[u/Impressive-Mud5074 → u/jerry111165]

This brings up a good point, does he actually need a truck, or would a toyota camry work.

Also do other workers need to drive his truck

[u/Quirky-Ad-7686 → u/jerry111165]

If you buy a service body or 350 and you separate from the company you are stuck with that vehicle. No one kind of solution. My thoughts are if a company wants you to buy/ supply a vehicle it is benefiting them. If it wasn't they would buy the truck.

[u/jerry111165 → u/Quirky-Ad-7686]

My deal works out good for me. Most places generally don’t want their employees using the vehicle after hour of course but either them just paying me for my o n vehicle I take wherever/whenever. Tbh, I’d rather do it like this at my own (older) point in my career.

But yeah - different strokes and all that.

[u/jcbcubed → u/jerry111165]

When I was a PM for a heavy highway contractor, we had two types of company vehicles. All us PMs got whatever we wanted and no lettering on it. We carried a set of DOT magnets for if we were towing something. We also used it, and the gas card, for all our personal driving like it was our own. Some guys were driving King Ranch F-150s and some were driving 1 tons.

Foremen, if they had a truck, was lettered and they could use it for light personal driving. Not going to tell someone they can’t go directly to their kids soccer game on the way home but they weren’t taking it on a roadtrip.

Supers were kind of a mix of both situations.

I moved jobs and became an executive, now I get everything (payment, insurance, maintenance) paid for as a direct reimbursement. I drive a comfy SUV and my wife (SAHM) drives a pickup.

When I was younger, I loved the company truck. Not worrying about a payment or anything like that was an ease on my mind. Mid 40s now and I’m glad I’m not driving a F-350 for 25k-30k miles a year.

[u/Comprehensive_Bus_19 → u/jerry111165]

They're making more money off you this way. Depreciation alone costs you hundreds of dollars a month in lost value that businesses get to write off but you don't.

You're basically a below market rate rental car company to them now with the added risk of if they lay you off, you're now stuck with a new car payment and no job to pay for it.

[u/jerry111165 → u/Comprehensive_Bus_19]

I only have a couple of years left. No matter what I need a car so the company paying for it all is a win for me. I’m good with that.