Company car or my own?
November 11, 2012 3:23 PM Subscribe
Should I keep the company car or choose to purchase my own car and receive a monthly allowance?
posted by ms_rasclark to Work & Money (6 answers total)
I work for an educational publishing company that has provided me with a company car for the past 6 years, a Dodge Caravan. Currently, all insurance, gas, and maintenance is paid by the company. I submit a monthly report detailing total miles driven and specifying how many are personal miles. We're supposed to keep personal miles to approximately 10%. The company has put out a poll asking if employees would prefer to keep their company car or choose to use their own car and receive a Fixed and Variable Rate (FAVR) monthly allowance. It is described this way:
IRS FAVR: Fixed and Variable Rate
• IRS accountable plan that is accurate, fair, and defensible
• Geographic and mileage sensitive
• Allows non taxed reimbursements, no W-2 reporting, no federal, state or FICA withholdings
• Continually updated to meet changing market conditions
IRS Mileage Rate: $.55 per mile for 2012
• Standardized across the entire US
• Not always fair for people with different driving patterns or who live in higher cost of living areas
• Only updated annually and does not consider current market conditions (i.e. gas prices)
The Caravan is not a car I would ever choose myself - it has been gutless and rattley since day one, and time and miles haven't improved it any. However, I do like the space, and every time I fill it up or have maintenance done, I appreciate that it's not coming out of my pocket.
If I was to choose my own car, I would need one that have space in the back to easily get heavy bins of books in and out of (up to 6 bins at a time), take the best advantage of the gas mileage reimbursement, have flexible space for up to 5 adults, and if I'm dreaming, have all wheel drive or 4-wheel drive for the occasional trip over the mountains when chain controls are in effect. I like SUV's way better than vans.
So...keep the company car, or choose my own, and which one?