Use my MS3 or take a Company Car?

[60181]

Okay, I've had Co. Cars before and they are the s*** because in the end, they are awesome values. However, that's when we only owned 1 car.

Now that I outright own both our vehicles, I'm trying to decide what to do. My new gig gives me the choice of a car or $.55/mi. I will likely be driving 1,000-1,500 or perhaps 2,000 miles per month.

I have my Ben Franklin T-Chart in motion to help me decide, but what would you do and why?

I don't want to miss anything that I should be considering.

Thanks!

 

[Mybeauner]

Use the company car. You're car will keep lower miles and not take as much wear and tear. the $0.55 a mile sounds nice but you are probably getting 26 miles to the gallon if you are babying your MS3 and assuming gas is $2.86 a gallon that means you are paying about $0.11 a mile (ish). so yea, you are getting about $0.44 more every mile you drive but is that going to make up for synthetic oil changes more frequently and potentialy more replaced tires? Also, it sounds like you'll have lots of highway miles which is good but you could experiance many rock-chips from being on the highway/freeway. Higher miles=deminished value if something happens and you need to sell your car.

Personally I'd take the company car to save my MS3 from unnessisary **** (lol) But do what is right for you, thats my suggestion. Above is just somethings to think about.

Good luck, let us know what you decide.

 

[Mybeauner]

^^^^ I didn't know the "lol" smiley looked like that . . . i regret using it, my bad haha

 

[Kindred]

Company car for sure.

 

[stageup]

company car, no brainer

 

[60181]

Okay, so here are my thoughts so far.

No doubt a co. car is a great deal. Been there done that..but at the times previously, I only had title to our minivan. Now that I own both vehicles free and clear, the co. car doesn't really do anything except keep the MS3 clean and low in miles.

In reality, that's cool, but the MS3 is not a Vette or collectors car and to me it's just a fun DD'er. It's not like she's ever going to be a garage queen to me. I have a ZO6 or similar lined up for that. AGain, reality is when the car is 5yrs old, it's still not going to be a collectors car or one that me or anyone is really going to say WOW! I'm going to pay big bucks for that!

My thoughts are the $.50/mile or whatever the rates are will allow me to bank upwards of $750-$1000 mo. tax free for whatever, repairs, new car, etc...Now of that. I'm spending the money on insurance anyway and mileage/value of the MS3...again, it's not that big of a deal as it's still a Mazda 3 and won't hold its value like an Accord or TL.....which I've had before and sold for serious coin even with high miles.

In the end, I'm thinking if I do the mileage thing for 2 years, at 20k miles per year:

I'll have roughly an additional $14k of tax free money from mileage saved.
Combined with the money I already have been saving per month in a "car fund" ($7k) , I'll have an account with ($21k cash) for whatever my next car is. And at that time, I could take a Co. Car, sell my MS3 which will only be 4yrs old with still only 60k on the ODO. Then I could use that $21k towards my Garage Queen

Even if I spend a few bucks on tires, repairs, maint, etc...it's no big deal. Besides it's all highway miles really.

The main thing I'm looking at is if I take a co. car, it doesn't yield me $$ each month, it just saves my expenses on the MS3 which still, at 25mpg and a set of tires or two and oil changes...those factors don't add up to much in comparison. Heck I just put new All Season tires on her and I already own a new set of winter tires.

What I see is for the next 40k in miles is roughly $5,800 or less if I do the work. The majority of it is gas.

1. More set of tires ($500)
2. 8 oil changes ($300)
3. Tranny Fluid ($140)
4. Front Brakes ($350)
5. Gas $4,500 (40k @ 25mpg @ $2.80gal.)

So, 40k in miles = roughly $20k tax free (equiv. to $31k income in my tax bracket) less the above expenses, leaves me with about $7k per year after all expenses.

Contrast all that with if I take the company car, in 2 years all I have is an 4yr old MS3 with low miles (about 32k) is what it would have on it.

Sure, I'll save on the $5,800 of gas, tires, wear/tear, but that's still about $9,500 less and will the MS3 be worth $9,500 more at that point? Doubt it. I can re-spray the front end chips for $500 and make her look like new outside and still be ahead.

Thanks for the continued input...still looking to decide.

 

[LaraS]

Company car... definitely. I personally wouldn't want to add so many miles and general wear/tear to the car.

 

[60181]

put aside the personal feelings towards the car....it's just a car....a small MS3...not a collectors car or beauty queen. Not knocking it, I love my car, but what's the best financial decision is the question.

Based on my notes above, in 2 years, I'll have a four year old car with 60k on the ODO. Who cares.

What I am looking at is if I go mileage, I'll have roughly $14k tax free in my pocket. If I go company car, I'll avoid about $5,800 in expenses but still $14k tax free in my pocket. Whereas if I keep my MS3 parked, I still have to pay insurance, some gas, some repairs and will just end up with a lower mile 4yr old car two years from now. Besides, I'll have spent 2yrs of my company car driving life in a Chevy Equinox vs my MS3.

Company car... definitely. I personally wouldn't want to add so many miles and general wear/tear to the car.

 

[BlackCherry06]

It would be hard to come up with a monetary amount to account for all the items that would suffer wear. Pits in the windshield, chips in the paint (down the sides..not just the nose), seats, carpet, clutch, shifter bushings, tie rods, struts, brakes...the list is extensive. I'm not saying that all that would need to be replaced...but they would all suffer wear. It wouldn't be worth it to me....company car all the way.

 

[60181]

I see what you're looking at, but again, the wear and tear is factored into the value of the car in the end regardless so it's a moot point. You can't look at it as what's needed to keep the car like new...you can't do that and drive it daily.

A 4yr old MS3 with 60k on the ODO is still only going to bring $XXX dollars and the below wear and tear items won't likely be nearly as bad as the typical MS3 with that many miles on it but regardless will have wear and tear.

It's not worth it to you now but when you're receiving mileage money, it doesn't cost you what it would in your situation today either.

Good input...keep it coming!

It would be hard to come up with a monetary amount to account for all the items that would suffer wear. Pits in the windshield, chips in the paint (down the sides..not just the nose), seats, carpet, clutch, shifter bushings, tie rods, struts, brakes...the list is extensive. I'm not saying that all that would need to be replaced...but they would all suffer wear. It wouldn't be worth it to me....company car all the way.

 

[LaraS]

You have to do what you want to do, not what other people would do in your situation. It seems you have made up your mind anyways.

 

[60181]

not completely....I have time to decide as I can always start with mileage and then choose the company car.

haven't decided yet, I'm just trying to look at it from the side of mileage as I have had company cars before and looking back, all it did was keep the miles on my DD'er low....and I sold it afterward for a few bucks more but not $14k more.

It seems you have made up your mind anyways.

 

[Mybeauner]

your post on all the cost was alot more detailed then mine, nice. Well I would sit down and determine whether or not the miles and wear and tear are worth it. From what you had posted eailier it looks like you've done your research and know the numbers and getting $14K in the bank is a big plas, just gotta not touch it ahah.

But you (and all of us) did buy our cars to drive them. So do what you feel is best, again you did the research and it sounds like you have a better understanding on what fits you better than anyone here I'm actually quite impressed on how in detail you went! My hat is off to you.

 

[blh_wakeboard]

s***, if I had my speed3 paid off I wouldn't give a rats ass about miles, I plan on driving this thing into the ground anyhow which will be a loooong time away hopefully. Mazda says drive drive drive haha, if I had mine paid off I'd be road tripping like a motherfucker, but that is just me and my opinion. The company car won't be as much fun(probably) either....

 

[60181]

exactly....I'm looking at this from my viewpoint because I do have my title and miles don't mean much to me. Your last point is also very valid. I had a Company car back in 05-07 and all it got me was a Grand Prix GXP and Pontiac GTO with little to no miles on them. Yet I had to tool around for 20k per year in a minivan and a small SUV, which were the two vehicles I had. Sucked.

s***, if I had my speed3 paid off I wouldn't give a rats ass about miles, I plan on driving this thing into the ground anyhow which will be a loooong time away hopefully. Mazda says drive drive drive haha, if I had mine paid off I'd be road tripping like a motherfucker, but that is just me and my opinion. The company car won't be as much fun(probably) either....

 

[Sacrilicious]

something to think about: how does insurance work into all this? unless you declare that your car is being used for business purposes as well (which will obviously increase insurance costs), what will happened if you get into an accident during a business trip and then insurance does an investigation. you can obviously keep your mouth shut and hope for the best, but what level of risk are you putting yourself in? does your company provide protection for your car while it's being used for business purposes? these are some of the things you should factor in if you're going to seriously consider putting upwards of 24k additional miles on your own vehicle for business purposes.

 

[60181]

With my insurance carrier, the only thing that changes is the miles I'm putting on my car. It's still a personal policy as I'm not "using it for work" only as a means to get to work. IE...I drive from Columbus to a Detroit hotel where my reps will then pick me up. I'm just driving my car to a site or between offices which is fine.

If I was a painter, hauling supplies, delivering pizza's, then technically I would need a commercial writer. However, my insurance co. doesn't require any change. My MS3 insurance with zero deductibles at 20k per year is $65 mo. That's the nice things about 20+ years of working with them, having multiple properties and cars under one carrier and zero accidents and a clean record

Good point though.

something to think about: how does insurance work into all this? unless you declare that your car is being used for business purposes as well (which will obviously increase insurance costs), what will happened if you get into an accident during a business trip and then insurance does an investigation. you can obviously keep your mouth shut and hope for the best, but what level of risk are you putting yourself in? does your company provide protection for your car while it's being used for business purposes? these are some of the things you should factor in if you're going to seriously consider putting upwards of 24k additional miles on your own vehicle for business purposes.

 

[NOTSPCY]

I also agree with using a company car.

 

[60181]

I also agree with using a company car.

why? I want the details so that I'm not missing anything.

 

[Sacrilicious]

With my insurance carrier, the only thing that changes is the miles I'm putting on my car. It's still a personal policy as I'm not "using it for work" only as a means to get to work. IE...I drive from Columbus to a Detroit hotel where my reps will then pick me up. I'm just driving my car to a site or between offices which is fine.

If I was a painter, hauling supplies, delivering pizza's, then technically I would need a commercial writer. However, my insurance co. doesn't require any change. My MS3 insurance with zero deductibles at 20k per year is $65 mo. That's the nice things about 20+ years of working with them, having multiple properties and cars under one carrier and zero accidents and a clean record

Good point though.

ok, that's good to hear, but if you do get into an accident, it will be your insurance that goes up. i'm not saying that you will, but it's a possibility that could cost you in the long run, so it's best to add that to your list of things to consider.