Mileage Reimbursement or Company Car?

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In the last 50K miles I had my first 528e on the road , I was getting reimbursed by the company for mileage. Oil changes and an axle were my only maintenance. I had the axle too.
 
Can your current vehicle handle the drive? No, get the company car.

Yes, read on.

500 miles per week * 26 weeks * .45 cents = $5,850.

Can you operate your vehicle for less than or equal to $5,850? You'll need an oil change or two over that period and of course gasoline.

If the vehicle survives with no major problems, the amount you pocket would make a nice down payment on a replacement car.
 
^ Agree with strat81. A relative had a similar situation a while back, ended up basically paying for a new car (actually paid off his current car) with the reimbursement. Only caveat is that you trust it with that many miles a week.
 
1. You might have insurance implications driving your own.

2. Could you use the company car on weekends when home? If so, you don't need the Avalon for the next six months and can get rid of the insurance, maintenance and registration costs, while it is mothballed.

3. Is it an option to drive your car, and if it doesn't work out switch to the company car? If this is an option, I would try this.
 
Company vehicle and get a nice sports or luxury car for the weekends. Put the wear and tear on their stuff.
 
My company paid for insurance when traveling for work and pays me $.55 a mile. I was averaging about 30k a year in work miles up until recently. My G35 paid for itself, Maintenance and future fuel a long time ago. Now I am left with a nice, high mileage car in perfect condition that was essentially free.

Driving the Tundra or FX45 the math doesn't work out so well, but my company paid in this manner for a few cars for me over the last 20 years.

I would be hesitant to start with a 250k mile car, usually that is what I end up with.
 
If you dig into the irs stuff you find out they figure something like 23 cents a mile for deprecations. The rest of the 56 cent is there to cover gas, insurance, increased chance of accident, general maintenance. Which means with the irs rate you get 33 cent a mile to cover that. With your rate you are only talking 22 cents a mile.
 
Originally Posted By: c502cid
You can claim the difference between the rate you are paid and the IRS rate on your taxes. My company truck use is taxed as income. I'd much rather pick and use my own car although the gas card sure is nice some days!


If I remember correctly, if you are w2ed the expense needs to be greater than 2% of your gross income for you to be able to write it off.
 
Been on both sides of this coin. Strat81 hits the main question: Can your car handle the job at hand?

In my case, much of my work is field work (read gravel roads and construction sites). Got tired of beating on my own equipment in that scenario, and as a result, I take the Company vehicle anytime I can get it. Between needing a 4x4 (see construction sites above) and the wear and tear inflicted (like tracking mud into the interior), the company vehicle is the way to go.

Also surprised you even get an option. We have a policy that basically states above a certain amount of mileage reimbursement, and you get a company vehicle - its cheaper for the company past a certain point.
 
I take the mileage everytime, as depreciation isn't a consideration for my cars really, they are decent on gas, and I like driving my cars over the company vans.
It helps pay for gas or maintenance over the year too.
 
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