Being forced to pay for a company car to reimburse for personal use

[Kelemvor]

OK, I have a strange situation I need some feedback on. I started a new job a month or so ago and it involes travel to local places where we have equipment to do repairs. THe company provides me with a vehicle to use but I have to pay for it. The paying for it is to reimburse them because I will use the vehicle for personal use as well.

Here's an exerpt from the form I'm supposed to sign:

I hereby authorized COMPANY to without $_________ bi-weekly from my salary effective: xx/xx/xx (the date of assignment of a company vehicle). The purpose of this deduction is to reimburse COMPANY for non-business use of the company vehicle assigned to the undersigned.

I understand that from time to time at the request of the Company, the company vehicle may need to be made available for business by other employees to the extent required.

DOes that just sound wrong to anyone else? I'm being forced to pay $250/mo for a car that isn't suitable for me to use it for personal use because of the options that it doesn't have on it. I have my own car and an SUV and really don't need a 3rd car. And since it doesn't have a trailer hitch, roof rack, etc, I can't even use it to go on the weekends to take bikes or go on out trips to the lake because it doesn't hold enough stuff inside.

I emailed the person in charge of the car thing with my concerns and that I won't use it for personal use and was told: "The policy is that if you have a car you pay the $250 personal use. There is no option to not paying it."

Anyone ever have something like this come up?

If the car had all the options on it that I needed I'd be fine paying for it since it's basically paying for the entire lease on my own. They do pay for gas and maintenance but it's under warranty anyway. It just sounds like something fishy that shouldn't be able to be forced upon me.

Argh.

Updates from questions below:

They pay for the gas but I'm "supposed" to pay for the gas on the weekends and for going on vacation. But I sure onw't do it for weekends and probably not for anything unless they yell at me. It has a gas card where I have to put in the mileage every time I fill up. Not sure how or if they track it but on any given day I could travel 20 miles for work or 200 miles for work....

I'm not allowed to make any modifications to it like adding a trailer hitch or anything either.

I will probably sell my car since I won't need it for that but we were going to sell the SUV too and get a mini-van but I can't afford 2 car payments a month when now we have none...

Part 2:
The vehicle is a 2006 Grand Caravan that already had 50,000+ miles on it when I got it.

They pay for everything on the car (gas, oil changes, repairs, insurance, etc) but I'm supposed to pay for gas when I use it on weekends. And yes, $250/mo is a good deal for that but since it doesn't have the hitch, rack, etc, I'd only be able to use it to run local errands to the grocery store and such and $250/mo for that is just retarded. If I could use it for trips and things because it had the options I need, then I wouldn't be complaining at all.

I might have the option of just not using the car but my car is a'99 Grand Am with 110,000+ miles on it and it's getting to the point that it needs to go anyway so not sure that'd help enough.

I guess I'll have to do some more research.

 

[KMc]

I had to do the same thing when I worked for GM. You'll figure out a way to make it worthwhile.

 

[Kelemvor]

FOrgot to add, can I deduct this on my taxes then as an out of pocket business expense? That might at least help a bit... The company said they don't report it for tax purposes but they didn't think I could deduct it...

 

[Capt Caveman]

Do you also have to pay for the gas or do they reimburse you for that? It seems wrong to me.

 

[Skyclad1uhm1]

They pay for gas and maintenance? Use it for racing around on a racetrack, and try to use up as much gas as possible and wear out the car as fast as possible. See what they say when it costs them $5k a week or so just to keep it on the road

 

[Pliablemoose]

Sell one of your cars, put on a cheap ass trailer hitch or roof rack, problem solved.

 

[KMc]

You can't deduct it because the $ you are paying is for your personal use of that vehicle, so technically it isn't a business expense.

In the old days, they used to charge you "imputed income" anytime you took a vehicle home overnight. And that was taxable AND non-deductible. I think they had some issues on the tax law on that one and discontinued the policy.

 

[Kelemvor]

They pay for the gas but I'm "supposed" to pay for the gas on the weekends and for going on vacation. But I sure onw't do it for weekends and probably not for anything unless they yell at me. It has a gas card where I have to put in the mileage every time I fill up. Not sure how or if they track it but on any given day I could travel 20 miles for work or 200 miles for work....

I'm not allowed to make any modifications to it like adding a trailer hitch or anything either.

I will probably sell my car since I won't need it for that but we were going to sell the SUV too and get a mini-van but I can't afford 2 car payments a month when now we have none...

 

[Ramma2]

Can you not drive the company car? Here we give them the option.

 

[ATLien247]

Don't use the company car at all?

If $250 is less than what you would pay for gas and maintenance using your own car for work-related travel during the same period, then you're coming out ahead.

 

[Injury]

This whole arrangement just seems entirely ridiculous to me. If they want you to drive their vehicle they shouldn't be charging you at all. Are they paying for the insurance? Are they footing the bill for ALL maintenance, from oil and tires to all mechanical work? If not, $250/mo seems kinda rough... or is my car just THAT reliable and economical that it seems high?


Don't they make trailer hitches that you can remove fairly easily? You could easily use one of those... or one that is well hidden so they won't know. What are they gonna do if they see a trailer hitch on it, sue you?

 

[Pliablemoose]

Originally posted by: Injury
This whole arrangement just seems entirely ridiculous to me. If they want you to drive their vehicle they shouldn't be charging you at all. Are they paying for the insurance? Are they footing the bill for ALL maintenance, from oil and tires to all mechanical work? If not, $250/mo seems kinda rough... or is my car just THAT reliable and economical that it seems high?


Don't they make trailer hitches that you can remove fairly easily? You could easily use one of those... or one that is well hidden so they won't know. What are they gonna do if they see a trailer hitch on it, sue you?

Yep. I'd slap on a Hidden Hitch, and buy a roof rack, drive the everloving piss out of the thing to get my $ worth.

 

[Kelemvor]

What's a Hidden Hitch? Might be an option depending on how much they cost. And I don't know what they'd do if I did it and they found out anyway. We're not supposed to but there are people who have. We do get the option of purchasing the vehicle when the lease is up too but I don't know the details on that yet.

The vehicle is a 2006 Grand Caravan that already had 50,000+ miles on it when I got it.

They pay for everything on the car (gas, oil changes, repairs, insurance, etc) but I'm supposed to pay for gas when I use it on weekends. And yes, $250/mo is a good deal for that but since it doesn't have the hitch, rack, etc, I'd only be able to use it to run local errands to the grocery store and such and $250/mo for that is just retarded. If I could use it for trips and things because it had the options I need, then I wouldn't be complaining at all.

I might have the option of just not using the car but my car is a'99 Grand Am with 110,000+ miles on it and it's getting to the point that it needs to go anyway so not sure that'd help enough.

I guess I'll have to do some more research.

 

[BoomerD]

http://www.hiddenhitch.com/

 

[pontifex]

don't use it for non-business, simple as that, or so it seems.
i don't understand how this whole deal works out. its very confusing and its liek they want you to pay for the car payments but they;ll pay for everything else except for gas when you use it for non-work stuff...

 

[dud]

This situation is just so wrong I don't know where to begin. $250 a month is nearly a car payment ... just to use it for personal use? Give me a break. You have two other vehicles for "personal use", why would you need another?

I not aware of your total personal situation but consider returning the van and using your own vehicle and getting paid mileage (if they allow it). I get almost $0.50 per mile when I drive my vehicle for work reasons.

 

[Kelemvor]

Originally posted by: BoomerD
http://www.hiddenhitch.com/

Just came back to post that I found them. I can get the hitch I need for $230 installed at a local place. That might be an option and would help immensely especially since it's removable.

Thanks.

EDIT: Heh, called Dodge for a roof rack and they want $180 for the rack and $170 to install it. Sheesh.

 

[halik]

That kinda sucks, I guess thats the only way to eliminate the freerider problem. If they don't make you pay, you'll use it on daily basis.

Still kinda of a BS rule - if you leave the car at work overnight, they shouldn't be charging you for anything.

 

[Gunslinger08]

Originally posted by: pontifex
don't use it for non-business, simple as that, or so it seems.
i don't understand how this whole deal works out. its very confusing and its liek they want you to pay for the car payments but they;ll pay for everything else except for gas when you use it for non-work stuff...

Did you read the OP? He doesn't have a choice. Even if he leaves the car in the company parking lot every night and weekends, he's still going to have to pay.

Find a new job. I find that companies who try to screw you in one way will find a multitude of other ways.

 

[Gunslinger08]

Originally posted by: halik
That kinda sucks, I guess thats the only way to eliminate the freerider problem. If they don't make you pay, you'll use it on daily basis.

Still kinda of a BS rule - if you leave the car at work overnight, they shouldn't be charging you for anything.

It doesn't even make sense to fix a freerider problem. Why would people use it any more or less in his current situation if they didn't have to pay $250 a month? They have no choice but to pay $250 now, even if they don't use it.

 

[Kelemvor]

Originally posted by: halik
Still kinda of a BS rule - if you leave the car at work overnight, they shouldn't be charging you for anything.

That's the only other thing I could think of is to just park it at our official "office" that we never go to and just driver there each morning to get it and return it there each night.

 

[Kelemvor]

Originally posted by: Kelemvor

Originally posted by: BoomerD
http://www.hiddenhitch.com/

Just came back to post that I found them. I can get the hitch I need for $230 installed at a local place. That might be an option and would help immensely especially since it's removable.

Thanks.

EDIT: Heh, called Dodge for a roof rack and they want $180 for the rack and $170 to install it. Sheesh.

HMM, Can get the hitch itself for like $140. Anyone ever install one of these before? Is it really simple or worth $100 to have someone else do it?

 

[Mxylplyx]

After selling one of your own cars, and dropping your personal insurance coverage down to one vehicle, it seems like you might come out ahead. I'm sure you'll find ways to use alot of their gas for your personal use. Just learn the limits of what you can do to stay under their radar. It's still a bullshit situation, but you should be able to make it work in your favor.

 

[desy]

I didn't have to 'pay' for a vehicle but it did show up as a taxable benefit on my income tax.
My brother did have to pay and he told them he didn't want to and would leave it at the office but because the office was in a sketchy part of town they didn't want him to leafve it there
So, to help them out and get it safely out of there, they punish him by making him pay as they forcibly make him take it?

 

[Kelemvor]

Originally posted by: Mxylplyx
After selling one of your own cars, and dropping your personal insurance coverage down to one vehicle, it seems like you might come out ahead. I'm sure you'll find ways to use alot of their gas for your personal use. Just learn the limits of what you can do to stay under their radar. It's still a bullshit situation, but you should be able to make it work in your favor.

Yeah. It will come down to dumping current insurance on car ($45/mo). Selling car (Maybe $3k if I'm lucky). Using company van for literally everything I possibly can (saves gas for gas guzzling Durango). So I guess we'll just see what happens.