I currently have a work truck, but I think my arrangement should be changing later this year. It sounds like I'm going to have a few options moving forward. Currently, I can only use the work truck for work purposes so I have a STX F150 that will be paid off next year.

Here are the options (I think):
-Get another vehicle from work, and this one would allow for personal use (still monitored by our fleet group). Sell my personal truck and get a chunk of cash. Company pays insurance and any maintenance, repairs, etc.
-Take a vehicle allowance (includes fuel card) that amounts to $700-$800 a month after tax. I'm on the hook for insurance, maintenance, etc., but if I leave I've got a vehicle that someone else has been making payments on. For this option, do I use my current truck since it's almost paid off, or just get something new? I like my truck, but wouldn't mind upgrading.

Corps_Ag12 said:

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I'd keep my personal truck and take the work truck. That way you're always in a position of "**** you"

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It would be nice to only have two vehicles (mine and my wife's) to deal with. Parking situation with three now is less than ideal.

I'd do a mix of both.

It depends on the payments...but if all your vehicle costs are paid for through their allowance, might as well let them buy you a new truck (with the truck allowance). Get something new, with warranty, since you're on the hook for maintenance/repairs.

Make sure you can afford that payment if that job goes away for any reason.

I'd also sell your current truck and put the proceeds away (let it earn some interest), and have it available for your next personal vehicle. If anything happens, you have it available to get something else (or to make payments on the new truck). But there is no reason to pay for maintenance/insurance, etc....for a truck sitting there getting older.

This option requires a little discipline, but you'll have a vehicle they're paying for, and a stack of cash in the bank.

AgGrad99 said:

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I'd do a mix of both.

It depends on the payments...but if all your vehicle costs are paid for through their allowance, might as well let them buy you a new truck (with the truck allowance). Get something new, with warranty, since you're on the hook for maintenance/repairs.

Make sure you can afford that payment if that job goes away for any reason.

I'd also sell your current truck and put the proceeds away (let it earn some interest), and have it available for your next personal vehicle. If anything happens, you have it available to get something else (or to make payments on the new truck). But there is no reason to pay for maintenance/insurance, etc....for a truck sitting there getting older.

This option requires a little discipline, but you'll have a vehicle they're paying for, and a stack of cash in the bank.

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With my current truck, they would be. With vehicle prices what they are now, I doubt it would cover everything.

Something else to consider is that I'd be putting 25-30k miles on it per year.

Gotcha. That's the rub I guess.

If you're putting 30k a year on it, warranty will be out soon, and maintenance costs will be more. I'd maybe lean towards letting them assume that cost then, rather than taking the allowance.

I'd still sell your truck no matter what. Why not have cash in the bank, growing a little, instead of paying for it to sit there and get older?

Bro watched The Gambler

I was in the exact same position as you 4 years ago. Went from fully paid company truck to an allowance that was more than fair, but shifted the insurance and maintenance to me. Gas and tolls still expensed, so no impact there.

If you end up buying another truck and taking the stipend, it works if you're going to be at your current job for a while. Let someone else pay it for you and you keep the equity after X years. Its worked out for me. The stipend is now funding my investments, and when I choose to get rid of my Ram it will be a large trade/down payment for my next car. Its not worked out for other colleagues who ended up changing jobs within ~2 years.

Make sure you evaluate the insurance portion, too.

I was going to question the miles. That's quite a bit. So that maintenance and depreciation will add up.

With the stipend, do you also get to expense mileage or just fuel? Are there rules around age of your truck? So do you have to buy a new one every 3 years, for example, to get the stipend. I know a lot of companies have policies like this, but generally for sales reps and less so for work trucks.

Driving that many miles, I'd probably go with the work truck. Sell your truck, invest that $$$, and then you'll have it for a new ride if you need/want to leave.

If there aren't rules about having to buy a new vehicle every 3 years and you think you'll be there and have the same truck long term, more of a coin flip, IMO.

No expensing, we just get a fuel card to use.

I don't believe there are restrictions, based on what I see other people driving. I haven't heard for sure though. I do know it has to have four doors, which I would get anyways.

I've got a work pickup that I can only use for work purposes that the company pays for everything on. It's nice because I put around 36k miles a year on it and I don't have to worry about maintenance on it or the warranty expiring.
Plus, if for some reason something were to rip the seat or damage the bed due to use, I'm not stuck with a damaged pickup to try and sell later on down the road.

I would take the work truck and put $700/month into an account so that if you do leave, you can get something quickly