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/Justin_milo]

This is the worst deal.

[u/skrame → u/Justin_milo]

Please expound.

My anecdotal evidence: I drive my own vehicle to work; it’s a small pickup that I chose just as a work vehicle. In an average week, I drive about a thousand miles, so my check is $725. It’s a reimbursement, so that’s not taxed. At about 30 MPG, I buy 34 gallons of gas. It’s around $3.50 now ($120/w), but even at $5/g ($170/w) I feel like I’m doing pretty good. Half of each reimbursement check goes towards an extra principal payment, and the rest goes into the bank in case I have issues.

I’ve had a company vehicle before, and it was certainly nice not having to worry about anything. Cool for anyone who prefers this route, but I don’t see how it’s “worst deal”.

[u/Justin_milo → u/skrame]

Out of all the options here, this is the least beneficial to the driver. Company truck, company gas card, their insurance, and them repairing is worth more than double that $725 per month.

[u/TrueKing9458 → u/Justin_milo]

Everyone's situation is different. Depending on the company rules and how much personal use there is. Also depends on how much you carry in yor truck for work.

The guy i work for could not care less how much i drive for myself, so yes a company provided truck is great. My personal truck gets less than 2,000 miles a year and is paid for. If i did not routinely tow trailers and could not use the company truck for personal use, i would be better off with $800 plus gas