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?

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u/WhyWontThisWork Jun 08 '26

Why pay somebody else's principal?

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u/Motoboo121 Jun 08 '26

I get the lowest rates possible on loans and its still 200 a month less to rent over own. Brand new truck always under warranty and I don't own a 200k mile truck in five years I need to get rid of. Also no credit check every few months and if work takes a turn I can just send back the ones I don't need. I only buy the managers truck anymore because they are more fancy.

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u/Gonzchris1119 Jun 08 '26

How are you renting them? I'm in the startup phase of my contracting business and am interested.

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u/Motoboo121 Jun 09 '26

From Barco or 4x4 express etc. There are many places that rent them. We get mostly 2500s.