To company car or not to company car? That is the question

cheapie · 04-23-2004, 07:42 AM

I have a dilemma. My boss has told me that if I can justify getting a company car I can do so. I would have to put together a justification including how many miles I travelled last year, and how many I plan to travel this year. Also, I have to detail how much I spent and how much I could save by having a company car. Also, the previous people in my position have had a car so that will help my case. The cars I could likely get are the following:

Chevy Impala Sedan LS
Pontiac Gran Prix GT2
Chrysler Sebring Touring Sedan
Chrysler Town and Country Van
Saturn VUE AWD

I'd likely lean toward the Gran Prix or the VUE. The Gran Prix has a 3.8 200hp engine that I'm sure I could mod to get a ton more out of. Just put an Eaton supercharger on it and....oh yeah.

crap! look at this ****.

Quote:

1. The standard fleet vehicle has been equipped adequately for business use. Alterations made to automobiles of any type, including change of radios, vehicle suspension system, painting for other than damage or cosmetic repairs, removal of floor mats or removal of any employee option is prohibited.

Anyhow the details of personal use is as follows:

Quote:

8.1 Definition of Business & Personal Use of a Personally Assigned Eaton Vehicle

8.1.1 Business Use
By law, business use of a company vehicle is defined as:
· Travel between the driver’s home and a temporary work location.
· Travel between various work locations during the day.
· Overnight travel for business purposes.

8.1.2 Personal Use
Personal use of a company vehicle is defined as:
· Commuting to and from your principle place of business and your home.
· Personal trips, errands, shopping, weekend trips, vacation, or any trip not related to business.
· Any use by a family member who is authorized to use the vehicle.
· All company employees assigned a company vehicle are authorized to use the vehicle for personal use. This authorization applies only to the vehicle assigned, not to any other vehicle(s).

8.2 Employee’s Cost for Personal Use of a Company Vehicle
8.2.1 Payroll Deduction
Eaton Corporation charges the assigned driver $95.00 per month as a payroll deduction to reimburse the Company for the driver’s personal use. This amount is deducted one (1) time each month from the second (2nd) pay period. It is designed to cover the convenience of having a vehicle available to the employee for personal use at all times and also covers all depreciation, fuel, maintenance, insurance, etc., for the employee’s personal use of the vehicle.

8.2.2 Fringe Benefit Reporting
Eaton Corporation is required by Federal Tax Code to treat the total value of personal use of a company vehicle as a taxable benefit to the employee.

This value is calculated using the relationship of business and personal miles, the annual leased value as published by the IRS, and the value of fuel used for personal use of the vehicle.

This total value is then reduced by any monies paid to Eaton through payroll deduction, and the balance, if any, is imputed to the employee’s wages at year end.

Is it worth getting it? It would mean I wouldn't fly nearly as much. However, I'd get a cool car for $90/month, including fuel, car washes, taxes, insurance, etc. And my wife can drive it. Can anyone help me figure out what the tax implications would be?

johnnymk · 04-24-2004, 02:06 PM

What division of Eaton do you work for?

cheapie · 04-24-2004, 08:11 PM

the one you'd be familiar with . truck components. in fact, this is my ugly mug on the website.

http://www.roadranger.com/aftermarket/aftermarket.htm

i used to work in marketing communications and the guy that was supposed to model for the shot got sick. i had to stand in.

johnnymk · 04-25-2004, 09:46 AM

I really miss working on truck specs since I retired.

How is the mid and heavy truck market doing? Did the Clean Air Act with the resultant additional cost of diesel engines affect truck sales?

Is the semi-automatic more popular than ever?

cheapie · 04-25-2004, 01:48 PM

truck market is rocking right now. we are an early indicator for the economy. is the truck market is going crazy, the economy is on the upturn.

yes, the regulation hurt the industry. mostly because there was a huge pre-buy and then the resultant dropoff after the regs went into effect.

steel prices are killing us right now. still making money tho'!

attgig · 04-28-2004, 12:26 PM

if you're working for a truck company, why not get a huge truck? =) especially if gas is paid for

or are those the only choices you have?

oh and the impala is nice....you get the 3.8 engine on it.

Jeffbx · 04-29-2004, 06:53 AM

Did you make a decision?

I'll put in a vote for the Grand Prix - that's what I'm driving (GT2), and it's WAY better than the last generation of Grand Prix's. Styling is actually good on the inside AND the outside, and the 200HP is nice. Not going to win too many street races with this one, but nice power on the freeway.

Does the company actually buy the car, or do you get an allowance for it? If they pay you to get the car, maybe bump it up to the GTP.

04-24-2004, 02:06 PM	#2
johnnymk Chief of Naval Operations Join Date: May 2000 Location: LEVITTOWN< PA> USA Posts: 13,621	What division of Eaton do you work for? __________________ “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.” (Winston Churchill)

04-28-2004, 12:26 PM	#6
attgig Chief of Naval Operations Join Date: Jun 2000 Location: the burbs of baltimore Posts: 11,924	if you're working for a truck company, why not get a huge truck? =) especially if gas is paid for or are those the only choices you have? oh and the impala is nice....you get the 3.8 engine on it. __________________

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04-24-2004, 08:11 PM	#3
cheapie Chief of Naval Operations Join Date: Aug 2002 Location: raising my pimp hand strong Posts: 13,038	the one you'd be familiar with . truck components. in fact, this is my ugly mug on the website. http://www.roadranger.com/aftermarket/aftermarket.htm i used to work in marketing communications and the guy that was supposed to model for the shot got sick. i had to stand in.

04-25-2004, 09:46 AM	#4
johnnymk Chief of Naval Operations Join Date: May 2000 Location: LEVITTOWN< PA> USA Posts: 13,621	I really miss working on truck specs since I retired. How is the mid and heavy truck market doing? Did the Clean Air Act with the resultant additional cost of diesel engines affect truck sales? Is the semi-automatic more popular than ever?

04-25-2004, 01:48 PM	#5
cheapie Chief of Naval Operations Join Date: Aug 2002 Location: raising my pimp hand strong Posts: 13,038	truck market is rocking right now. we are an early indicator for the economy. is the truck market is going crazy, the economy is on the upturn. yes, the regulation hurt the industry. mostly because there was a huge pre-buy and then the resultant dropoff after the regs went into effect. steel prices are killing us right now. still making money tho'!

04-29-2004, 06:53 AM	#7
Jeffbx Fleet Admiral Join Date: Mar 2000 Location: Michigan Posts: 9,390	Did you make a decision? I'll put in a vote for the Grand Prix - that's what I'm driving (GT2), and it's WAY better than the last generation of Grand Prix's. Styling is actually good on the inside AND the outside, and the 200HP is nice. Not going to win too many street races with this one, but nice power on the freeway. Does the company actually buy the car, or do you get an allowance for it? If they pay you to get the car, maybe bump it up to the GTP.

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