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Company Car vs. Car Allowance

Pick your poison. Company cars are a good benefit but come with many strings. Plus, many companies actually charge a few hundred dollars a month for the "company" car.


Allowance gives the freedom to drive what you want, but all repairs and wear and tear are your responsibility.


The best deal I ever had was an allowance where I could also turn in gas receipts. Didn't have to track mileage for reimbursement.

Which is the better deal for salespeople?
Attached poll
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2
CadenceCombat
Tycoon
+13
Account Executive
For me, it depends if you already own a car or not. If you already own a car, go with the car allowance, if you don't, take advantage of the company car.
De
DentalSales
Managing Director
Not a bad approach at all. I've just never loved the choices provided via the company car option. Especially if there is still a payment required by the rep to use the company car. Have you seen this?
ChiDawg
Politicker
+4
Senior Account Executive
A couple years ago we transitioned from company cars to a car allowance. I bought out the company car at a great deal and they still honor the gas cards we used when it was a company car. I have to track mileage but that’s not too bad when the allowance covers my monthly payment and insurance πŸ‘πŸ»
De
DentalSales
Managing Director
Sounds like the perfect situation.Β 
salesnerd
WR Officer
+16
Head of Growth
Any time the option is either company provided X or company paying for your X I would typically go with the company paying for it (cell phones, internet, coworking space, etc.)Β 

I could be talked out of car, though. Here's why: depending on what you sell and why you use the car, you might need to get a specific size/spec on a car. My sister in law sold office furniture and so was moving a bunch of chairs, desks, etc. and got a big SUV for that with a car allowance. 6 months later she was laid off due to COVID and now she's stuck with this big car (and big car payment) and is forced to either drive that around or sell it.
SalesPharaoh
Politicker
+8
AM BDR
Car allowance...or uber allowance
YoureMuted
Opinionated
+1
AE
I'm not too proud to drive a $5k - $10k car and throw that vehicle allowance toward a fully funded Roth IRA.
6
Any current or former car sales reps in here?
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