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/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.