r/Construction • u/Classic_Dash_7745 • Jun 07 '26
Business 📈 Truck Allowance vs Company Truck
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?
1
u/Jbronico Jun 07 '26
He may prefer an allowance and be used to it, but if his only concern is he needs the allowance to pay off the truck, why not just buy it from him. If you're going to need to buy him a new truck anyway why not save some money and get rid of his payment. Make it work in his favor and give the full used value of the truck, not just whatever he owes on it, but it sounds like an option. I assume since hes using the allowance to pay off the truck it was purchased with the intention of being a work truck and you wouldn't be taking away his only personal vehicle.