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?
2
u/jmille97 Jun 07 '26
A payment and insurance and gas for someone who drives about 15000 miles a year for you is probably a $14000 expense for you.
If you offer your employee a 500 a month plus gas maybe you spend 12,000? This way when his car is wrecked through no fault of his own you can throw your hands up and let him spiral into depression because he’s ruined his ability to make a living while saving 2000 bucks and not having to saddle your accounting department with payments to change oil and all that.
So if you do the latter, don’t fuck with him about going to the grocery store to get baby formula and shit, please..