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

One other thing to consider. What if you leave this job for their reasons or yours? Would the car you choose be a keeper still?
 
loneryder said:
Do they expect you to fly if over 250 miles??
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No, rent a car. That's one of the questions we have. What is the mileage limit where we have to fly? Obviously, going from Boston to Seattle is a flight. But, what about Boston to Washinton DC? That has not been defined.....
 
c502cid said:
One other thing to consider. What if you leave this job for their reasons or yours? Would the car you choose be a keeper still?
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If the direction the company takes turns stressful to me, I would have to leave. Not worth it. Car would be mine. I'm not going to take option 1 as I will be doing a lot more of the factory training in the next couple of years, so, my business mileage would be closer to 10K. So, I have to get a vehicle.
 
UncleDave said:
What is it you are doing with the vehicle -carrying tools and gear or you and a laptop?

Never heard of such nonsense, and cant fathom the explanation would be on this mileage limit.
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I'm a field service engineer. So, have to travel to job sites to assist technicians on start-ups for new equipment (new releases), troubleshooting troublesome issues, retrofits, controls upgrades, etc.

I have an arc-flash bag, backpack that contains laptop plus several service tools (multi-meter, service tool kits needed to interface with equipment, etc.) Depending on job, may need to bring O-Scope, etc.
 
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DuckRyder said:
I'm not an expert, but do have a company provided vehicle, so i have a rough idea how it works. I also know someone who works under option 2 but they get more money upfront.

There are very specific rules the IRS has about it or more specifically personal mileage as a benefit. Any personal mileage over what's considered incidental is "extended" and chargeable at a higher rate (the .67 per mile IIRC)

My first question is are you SURE the 250 mile limit is for business miles and not incidental personal miles? Because it's dumb particularly in the case of scenario 1, i can somewhat see it in scenario 2 or 3 but it makes little sense to provide a company vehicle and then limit its business use.

Scenario one sounds like a scheme to charge you for personal miles without actually tracking them. It's easier than tracking each employees personal use and reporting the value as income. I would hazard a guess as long as you can avoid any penalty its the best deal.

In scenario 2 and 3 they've made it your vehicle and are buying back the use, i have no doubt that's an IRS approved scheme for them to reimburse for business use of a personal auto. Also before you decide you need to see what the insurance impact is going to be because i suspect you're going to need a business use endorsement and maybe a use of non owned cars for business.

I'm assuming they are paying for the rentals? what happens if YOUR (2,3) car breaks down on a trip? Do you then have to rent a car at YOUR expense and pay for the hotels? What happens if YOUR car breaks down and you cant report to your assigned work location?

Kris: the mileage paid at the IRS rate isn't income if the company is reimbursing for use of a personal vehicle.

At least that's my understanding and some questions i would be asking.
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There is nothing I have seen that says anything about personal miles (option 1.) As long as you meet the 15K.

Options 2 and 3 it's my car, so personal miles don't matter. They just care about the business miles.

The 250 mile option (we just got clarification) is ONLY for option 3. Not for option 1 and 2.

Yes, company would pay the rental. Good question on if my car breaks down on a trip, doubt the company would do anything about that. It would be my problem.

These are great questions and alot for me to think about (and ask!) Appreciate it.
 
Thank you everyone for your advice and feedback. I really appreciate it. It's a lot to think about. Still waiting on the "town hall" meetings to get more answers, and you have all given me a lot to ask!

Thanks again!
 
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Urshurak776 said:
Sorry all I had this in wrong forum. I had it in vehicles because I need to get one and was going to solicite recommendations. :)
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I deal with similar situations for commercial businesses. Here's a few things you should think about.

1) What vehicle would you like? You pretty much have free reign to buy whatever puts a smile on your face. Maybe a Mustang!

2) If your buy something off the beaten path (such as a hybrid or an EV) will your company provide a benefit? You may be able to charge the EV at work or even get a free Level 2 charger for your home. Or they may allow you to do rentals from outside a smaller area, such as a 100 mile radius. I have sold a ton of Chevy Bolts that now have high speed charging specifically because the businesses were willing to cover the costs or add benefits for those employees. .

3) The 69 cent a mile will be ridiculously profitable for you. If an EV is not in the cards, an older hybrid or PHEV should definitely be a top pick. I have a popular car buying service on Facebook called 48 Hours And A Used Car and, surprisingly, the Mitsubishi Outlander PHEV nails this bullseye quite well. It cost about $10k less than the Honda and Toyota competitors and they usually qualify for the $4000 tax credit too.

All the best!
 
I still want a company vehicle and $3M of liability coverage.

Zero possibility I will drive my own personal vehicle for my employer.
 
Urshurak776 said:
If the direction the company takes turns stressful to me, I would have to leave. Not worth it. Car would be mine. I'm not going to take option 1 as I will be doing a lot more of the factory training in the next couple of years, so, my business mileage would be closer to 10K. So, I have to get a vehicle.
Click to expand...
The reason I asked is I experienced this in the past. I had to have a vehicle that was 3 years or newer. I bought a truck to do the job at hand, although I had 2 at home that would have worked just as well, but they wouldn't budge on how old it was.

We had a parting of the ways a year later and I had a truck I didn't really need, but was making payments on. It wasn't a financial disaster or anything like that, but it did change my outlook on how I looked at company vehicles.
 
Urshurak776 said:
No, rent a car. That's one of the questions we have. What is the mileage limit where we have to fly? Obviously, going from Boston to Seattle is a flight. But, what about Boston to Washinton DC? That has not been defined.....
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Usually the policy is to choose the least expensive method of transportation. If flying + rental is less expensive than driving, you are obligated to use that method.
 
Urshurak776 said:
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.
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So get together before the first town hall meeting, and conspire to provide a united front. "I'm sorry, but none of the new plans work for me (us.) I need to stay on the old plan."

This worked (sorta) when they tried to make people work from home less. YMMV. :cool:
 
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