Would you take mileage reimbursement or use the company car? ?

I have a job that pays 40 cents a mile.  I drive around 500 miles a week so I get around 200 dollars.  However due to gas, I pay around 100,so I'm getting 100 dollars net. 

Would you keep using your vehicle to get the reimbursement or use the company vehicle? 

Some important facts is my car is a 2003 kia sedona van with 95000 miles. It gets around 18 mpgs.  

7 Answers

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  • 4 weeks ago

    Use the company car. At first it may seem better to use your own car, but thats only gas costs. factor in insurance tires etc. many insurance companies charge higher premiums if you use your car as a work vehicle, or sometimes your insurance may not even cover your car when used as a work vehicle

  • Anonymous
    4 weeks ago

    You are not making $100 net as you are not counting the wear & tear. But, $100 a week is a lot and the van probably is not worth much. So keep doing it but don't spend the money as the van will need things.

  • 4 weeks ago

    If you can drive the company car to and from work then it is a no brainer.  Use the company car and the company insurance and the company tires  and company oil changes and let the Kia sit  (or sell it)

    If you are driving the Kia to work and then have the option of driving the Kia for the rest of the work day or letting it sit and driving the company car, then we have to figure out the extra cost vs the extra income.

    You say you get paid about $200 per week to drive your own car,   (Thats the extra income)

    The extra costs include the  fuel   (about $100)

        --the tires $100 per tire every 50,000 miles  (about $4)

        --extra oil changes  $50 every 5000 miles     (about $5)

    Those seem like about the only extra expenses..I suppose there may be , like extra windshield washer fluid or wiper blades, but not much

    So you do seem to be further ahead driving your own car, but you won't get rich.

  • 4 weeks ago

    You have left out information.

    If you are:

    - driving to work in your own car

    - taking the company car to do your work

    - driving back to work

    - driving home in your own car EVERY DAY

    = it is better to use the company car.

    If you are going to have a company car where it lives at your house and you can take it where ever you want - grocery store, worksite, etc... there are taxes involved in this.  You NEED (capitalized because we can't bold or underline in this stupid app) to talk to a tax professional to determine the change to your taxes and the additional taxes you will pay by using a company car.

    • A Hunch
      Lv 7
      4 weeks agoReport

      As a result, there are IRS tax implications to having a company car.  You need to talk to a tax professional to see how those will impact your taxes. 

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  • 4 weeks ago

    The average cost of operating a Sedona is about 60 cents per mile, so 40 cents a mile doesn't come close to covering fuel, insurance and wear & tear on most vehicles, not to mention financing costs and taxes, so I'd opt for the company car. At 500 miles a week, not including personal travel, you're driving almost twice the average, so you're wearing out your car more than twice as fast as you would if you were driving the company vehicle.

    • bballfan164 weeks agoReport

      So am I losing money?  Even though it's old and not worth 2k dollars? The car is paid off.  And for insurance I would pay the same if I used it for work or not. 

  • 4 weeks ago

    I would go for the company car.  At 40 cents you are getting short changed.  The allowed mileage deduction from the IRS for business use of a vehicle is 55 cents.  With a company car everything gets paid for.  I drove company cars for 28 years on my job.  I got a new vehicle every two years.  I did not even have to buy insurance.

    • A Hunch
      Lv 7
      4 weeks agoReport

      Having a company car is considered a fridge benefit & is considered income (non cash income). like all income there is a tax involved.  That is why you need to talk to a tax professional so you know what's going on & what is the better deal for you. Just b/c you pay tax doesn't mean it's a bad deal

  • hamel5
    Lv 7
    4 weeks ago

    Normally,  I'd go with the company car.  But, since your vehicle is 16 years old - depreciation isn't really a factor.  So, it depends on whether you're getting ready for a new vehicle.  If so,  use the Kia and collect the money.  If not,  save your van by driving the company car. 

    • bballfan164 weeks agoReport

      Yes this is the only reason I'm using the car.  It's old and probably worth under 2k dollars.  I have another car and this isn't my main vehicle.  I was thinking after a year of driving, it could pay off itself.  Also there isn't much driveway space for me and it'll be annoying to have another car 

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