Company got a new CFO and they changed the vehicle policy.....

[Urshurak776]

So, my company has changed direction on our company vehicle policy.

Current: Salaried employees pay $110 a paycheck ($220/month) and we get a vehicle (Currently have a Ford Escape.) Company pays gas, insurance, maintenance, everything. As long as we get our required business miles in (15K a year) all is good. We have to keep a log of our business miles.

Now: You have 3 choices:

1st: Stay in program, at an increase of $85 or so a month. BUT, you can't drive more than 250 miles from your office/home location. So, if I have to drive somewhere that is 275 miles away (I am a field engineer and we drive all over the place, I typically put on 20K plus a year) we have to park our car and get a rental......

2nd: If you drive 7500-15K a year, you can provide your own vehicle (must be newer than 7 years old.) Company will give you $400/month plus a $.2075 per business mile. They will use an APP to track your mileage in real time (before we kept our own log and reported mileage monthly.) Insurance, maintenance, gas, etc. are on our own (that's where the .20 mile comes in.) This is somewhat desirbale as I keep the $220 month I am paying now, plus the $400 from company every month, plus the .20 mile.

3rd: You can provide your own vehicle, no money from company, but you get $.67 mile.

All scenarios, you have to get a rental car if the trip is over 250 miles.


Company sent an offer to us to buy our current company car, at fair market value. Yet, everyone in my group, the offer was $2K ABOVE blue book....

I may go with option 2, but not sure yet. Plus, I will need to get a vehicle. No idea what yet. Lease? Buy? Get a 2 year old used vehicle? Etc....

Anyone ever faced this type of thing?

 

[BMWTurboDzl]

How often does your company rotate out vehicles?
Do you have to drive off road?

 

[IndyIan]

How far do you drive within the 250 mile limit per year? Maybe get your own plugin hybrid and get paid an extra $30-40 an hour(minus expenses) when driving? I love getting mileage driving around my beaters. Gas with 35mpg and 15" tires are pretty cheap really.

 

[John105]

One man, dreamed up those 3 scenarios? Did he come from a smaller or larger co?

We have a svp who came from Citi. He’s come up with a lot of bad ideas. But we’re privately owned, at 6 bil revenue, and the owners worship this guy.

The third one was all we ever got since 2010. But we are not on the road as much as you. When I had started, the last of the Ford Tauruses were sold to employees.

I hate to say it, the current and past is a sweet deal. What I think C levels don’t ever realize is sometimes “programs” keep employees happy, in lieu of salary. Happy employees take the co far. They will upset that over $$$.

When I started I was given $140/mo stipend for cellular. Today, it’s $40, and I heard rumors they are looking into eliminating that.

One cannot expect me to use my personal cell for work formally, imho, without a stipend.

Years ago my buddy worked for a pharma with free healthcare. A foreign co took them over and it went to $100/mo. Still cheap. But to go from free to paid makes employees upset.

Good luck with whatever you decide.

 

[Wingo]

That mileage rate adds up fast

 

[SwampSurvivor]

You have to pay the company for a vehicle they require you to use? Huh? That makes no sense to me. I understand companies do weird things to get out of insuring vehicles but that's just odd.

Out of those, I'd do option 3 and get something cheap with very good fuel economy.

 

[John105]

That mileage rate adds up fast

But it’s only an irs guideline. Imho it doesn’t cover the true total cost. And you cannot drive a beater per their policy.

My thoughts are never use a personal vehicle for your employer. We’re not 19 yo working for Dominos. Get into a serious accident and see what happens, and how hard the corp attys will work to show willful conduct to eliminate liability. Always rent a car.

 

[John105]

You have to pay the company for a vehicle they require you to use? Huh? That makes no sense to me. I understand companies do weird things to get out of insuring vehicles but that's just odd.

Out of those, I'd do option 3 and get something cheap with very good fuel economy.

Often overlooked. When I rent a car there is NO option to accept a CDW. Because my employer is self insuring the rental. Imho it’s important to have a demarc and legally show by virtue of the rental agreement, this is business. My employer is responsible short of dui or illicit activity

If one is on the road every day, even more important to not let the employer take advantage. My .02

 

[Urshurak776]

Thanks for the feedback everyone. So, currently we get a new vehicle at 90K (typically it's closer to 100-110K before we actually get the new vehicle, but....)

The new program starts October 1st. They are doing a few "town halls" to go over questions, concerns, etc.

Doesn't leave a lot of time to decide.

Insurance has to meet whatever state guidelines we live in. Whatever that means....

 

[Urshurak776]

One man, dreamed up those 3 scenarios? Did he come from a smaller or larger co?

We have a svp who came from Citi. He’s come up with a lot of bad ideas. But we’re privately owned, at 6 bil revenue, and the owners worship this guy.

The third one was all we ever got since 2010. But we are not on the road as much as you. When I had started, the last of the Ford Tauruses were sold to employees.

I hate to say it, the current and past is a sweet deal. What I think C levels don’t ever realize is sometimes “programs” keep employees happy, in lieu of salary. Happy employees take the co far. They will upset that over $$$.

When I started I was given $140/mo stipend for cellular. Today, it’s $40, and I heard rumors they are looking into eliminating that.

One cannot expect me to use my personal cell for work formally, imho, without a stipend.

Years ago my buddy worked for a pharma with free healthcare. A foreign co took them over and it went to $100/mo. Still cheap. But to go from free to paid makes employees upset.

Good luck with whatever you decide.

Yeah, he came from a German controls company that, I guess, is pretty big in Europe.

He is awful....making lots of changes to try and save the company a buck....this vehicle thing is just the tip of the iceberg....

I agree with you, the current deal is SWEET. Been in the program like 10 years. Going away now though....

 

[Urshurak776]

How far do you drive within the 250 mile limit per year? Maybe get your own plugin hybrid and get paid an extra $30-40 an hour(minus expenses) when driving? I love getting mileage driving around my beaters. Gas with 35mpg and 15" tires are pretty cheap really.

I would say 70% is within 250 miles. But, have driven to Chicago, New York, Boston, DC, etc. I don't care for flying, but I do fly if beyond 8-10 hours. I have made a couple trips to Northeast by stopping at job sites along the way. Kind of a "tour" so to speak. I don't have to fly (hate it) and it gets my miles in. Well, USED to....

 

[Pablo]

He is awful....making lots of changes to try and save the company a buck....this vehicle thing is just the tip of the iceberg....

Been there. Done that!

Sometimes not much you can do. He has his circle established really quickly, has a goal and a timeline.

Watch the heck out. Start looking around, seriously.

 

[wings&wheels]

Been through this as in I was the guy charged with taking 15% out of a half billion dollar annual T&E spend for a tech company w/ 38,000 regular travelers, with the requirement of not unduly burdening or inconveniencing our 'road warrior' frequent travelers. The changes we implemented included the auto rental and reimbursement for use of personal cars and personal aircraft...

While I am sure cost is a, if not the key driver for the changes, reducing the amount of company cars will also be a significant benefit for obvious reasons, cars in the company's name were one of my first targets. The current arrangement appears generous, and changing is probably the right approach.

There is just one answer, or process towards your answer; financial modeling. Do good analyses of the options for your expected usage profile and maybe another profile if you anticipate any changes, and follow the calculations through to see which is best for you. Simple.

 

[John105]

Been there. Done that!

Sometimes not much you can do. He has his circle established really quickly, has a goal and a timeline.

Watch the heck out. Start looking around, seriously.

You said what many of us are afraid to, be it superstition, complacency, etc. my buddy just asked me what’s stopping you from leaving, when I whined I do incident management as an additional duty, when in fact this is a $160k/yr full time job where I live. I had a 60+ hour work week when wfh’s do 5-15 hrs a week then do all their personal
Stuff on co time. He said I feel for you man but you have to leave.

 

[Urshurak776]

Been there. Done that!

Sometimes not much you can do. He has his circle established really quickly, has a goal and a timeline.

Watch the heck out. Start looking around, seriously.

Thanks. A few of the guys in my group (10 of us total) are 62, 64 and 60. They are, well, don't want to get banned, but PI$$ED.......

The company has always been good to me, and the money is pretty good, but current chain of command is pretty bad right now. Seems to change over pretty often, so hoping I can ride the wave, but who knows....

Like you said, never a bad idea to keep your resume sharp.

 

[zzyzzx]

Currently have a Ford Escape.

Do you like it?

 

[SwampSurvivor]

Thanks. A few of the guys in my group (10 of us total) are 62, 64 and 60. They are, well, don't want to get banned, but PI$$ED.......

The company has always been good to me, and the money is pretty good, but current chain of command is pretty bad right now. Seems to change over pretty often, so hoping I can ride the wave, but who knows....

Like you said, never a bad idea to keep your resume sharp.

My last job was for a company that won the "10 best employers" award numerous times. There were a lot of folks (still a few) there from the 90s.

There was a management switch around 2017 that wasn't great. A lot of folks kept trying to ride it out. It just kept getting worse and worse. Finally in 2022/2023, they started shedding a lot of tenured people. And they often took their business with them! I finally jumped ship earlier this year after it just became unbearable for me.

I was demoted (yet given a bunch of engineering work?).
Then I was accused of damaging company property - even though there were witnesses claiming I was not responsible. Eventually it was discovered that it wans't me. But it was strange how management jumped on me .

There was writing on the wall. I got out of there soon.

 

[fantastic]

No longer an option 15k miles a year $110 monthly = $1,320 annually

$85 a month but all 250+ are rental w/you footing the bill $1020 1st year
15k miles a year $0.2075 a mile + $400 month = $7,912.50 annually (App based on mileage) (7 yr age requirement)
15k miles a year $0.67 a mile = $10,050 annually (App based on mileage) (No 7 yr age requirement?)

Any idea of how many miles are outside of 250 radius that you do?
Need some numbers like insurance, maintenance, etc to know which one sounds the best.
How old is your personal vehicle you'd be using & once it turns 7 years old do you have to get a newer vehicle if you're already in the program? Need to know if vehicle age is a requirement for the 3rd option.

2nd option: 20,000 miles x 7 years if you bought a new car would put on 140,000 miles in 7 years. Does the extra money help pay for that car that you could use as a personal vehicle afterwards?

3rd option: Buying a used car w/50k miles on it or so could be a good option for this option.

 

[Urshurak776]

No longer an option 15k miles a year $110 monthly = $1,320 annually

$85 a month for but all 250+ are rental w/you footing the bill $1020 1st year
15k miles a year $0.20 a mile + $400 month = $7,912.50 annually (App based on mileage)
15k miles a year $0.67 a mile = $10,050 annually (No 7 yr age requirement?)

Any idea of how many miles are outside of 250 radius that you do?
Need some numbers like insurance, maintenance, etc to know which one sounds the best.
How old is your personal vehicle you'd be using & once it turns 8 years old do you have to get a newer vehicle if you're already in the program?

It was $110 a paycheck, so $220 month (updated original post, I should have been clearer on that. Sorry.)

I would say a quarter of my miles are outside the radius. Maybe a little more. Closer to 30% probably.

I haven't looked into insurance pricing yet, or a vehicle. I will need to get something (lease, buy new, buy used, etc.) Not sure yet. At all times if you're within the program, vehicle must be newer than 7 years old......

 

[Urshurak776]

My last job was for a company that won the "10 best employers" award numerous times. There were a lot of folks (still a few) there from the 90s.

There was a management switch around 2017 that wasn't great. A lot of folks kept trying to ride it out. It just kept getting worse and worse. Finally in 2022/2023, they started shedding a lot of tenured people. And they often took their business with them! I finally jumped ship earlier this year after it just became unbearable for me.

I was demoted (yet given a bunch of engineering work?).
Then I was accused of damaging company property - even though there were witnesses claiming I was not responsible. Eventually it was discovered that it wans't me. But it was strange how management jumped on me .

There was writing on the wall. I got out of there soon.

I'm very sorry this happened to you.Hope everything has been positive going forward.