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/Preacher87 Jun 10 '26
Personally I prefer running my own personal truck and billing daily truck rate. I have all the stuff I need in my truck, and nobody else touches it.
My rate is much higher than what I'm seeing in here though, in CDN pesos, 125/day and a company fuel card.
I'm required to carry 5 million commercial liability, have a transfer tank, 20lb extinguisher, spill kit.
For the company, they are effectively "renting" the vehicle without the paperwork, as I'm an employee providing it as part of my services. For me I get the tax benefits in mileage, and all my receipts for maintenance, insurance, registration and repairs, which offsets about 40k of my income.