company vehicles??????

Discussion in 'General Discussion' started by PorscheGuy, Nov 26, 2018.

  1. PorscheGuy

    PorscheGuy Well-Known Member

    Feb 14, 2012
    question, for those of you that have a company car, what is the policy you have to follow? i have 10 full time vehicles for my techs, i pay 100% of everything which is killing me. they drive them home and to work, i cover all maintenance, gas, oil, wear an tear, etc. broke windshield, dents/dings, tires, breaks etc etc

    what is fair in your opinion. i am cool with gas and oil and brakes. but what else should i be 100% responsible for. mind you, i do not pay my guys minimum wage, i have 10 techs, my basic tech is $36k, i have 2 at this salary, i have 3 tech between $40 and $50k, i have 3 techs between $50 and $60k, 1 at $65k and 1 at $100k.

    benefits, insurance, etc etc

    also, these salaries are based on 40-45hr work weeks

    thoughts and opinions needed

  2. Razer

    Razer On The Razers Edge Staff Member Admin Moderator Supporting Addict

    Jul 1, 2012
    Every assignment I've had that involved Company vehicles is the same as you described, except that you couldn't take it home.
    boatdoc likes this.

  3. Scaramouche

    Scaramouche Student of the Columbian Exchange Supporting Addict

    Sep 15, 2015
    Hire a business analyst to look at it; I say this cause I want you to continue being successful. Someone who has fleet management/logistics background.
  4. Buckhorn

    Buckhorn Well-Known Member

    Nov 30, 2015
    I can’t speak to what’s fair but for my company car all expenses are paid by the company but I must turn in personal miles to allow calculation of my tax on that personal use. That doesn’t help you though. That benefit as you have described is definitely compensation for them.

    I think if you own the car you are on the hook for the extra costs but that doesn’t mean you can’t make a separate arrangement with them.
    gps man likes this.
  5. PorscheGuy

    PorscheGuy Well-Known Member

    Feb 14, 2012
    thats kinda my point, if they did not drive it home than i know all wear and tear and damage is happening on company hours. but when i would guess 50% of the miles on these vans are from driving home and back to work than where does it end. in my business once we leave my office to go to an install or job site than the van is parked for the day, i would guess that miles per day for work is easily less than 30 miles aday, however, i have a couple guys that on the short travel put 20 miles aday coming to work and back home but the others 5-6 put anywhere from 40 to 60 miles aday coming to work and home

    i spend a fortune on brakes, rotors, dent/ding repair, cracked winshcields, etc etc
  6. DukeSoprano

    DukeSoprano Supporting Addict Supporting Addict

    Jan 17, 2013
    I have one and it is considered part of my salary , however we have our own garage that can do all the repairs except bodywork. Yes I get to use it as much as I want to.
    boatdoc likes this.
  7. Slapshot

    Slapshot Well-Known Member

    Sep 6, 2017
    Fair compensation of any type is the hardest thing to figure out for any small business. The best thing I ever did was have my outside sales guys start using their own cars and paying them mileage. A vehicle is a nice perk and can really save an employee a lot of money. You have to look at it as part of their overall compensation. This post is probably little help - sorry.

    Sent from my iPad using Tapatalk
  8. FWoo45

    FWoo45 Well-Known Member

    Jan 13, 2017
    I've been driving a company rig for about a year now. They cover pretty much everything, told me a "tank of gas a week or whatever." I stretched that to one every two weeks. Any more than that and I cover fuel. They take very good care of me and I'm not looking to take advantage. If I tow my boat to the lake or take a trip I buy the gas even on a company fun trip. Maintenance wise they buy the parts and I do the work on my own time. I wash and vacuum the thing once a week. I wouldn't expect them to cover that. Granted I'm the only guy with a company rig and it's my boss's old truck. So it's not like I'm cruising around in a service body or panel van. The service trucks stay at the shop unless they're working.
    Stogies and boatdoc like this.
  9. PorscheGuy

    PorscheGuy Well-Known Member

    Feb 14, 2012
    few examples, windshield gets a chip, they can get it fixed on my dime for $50-$60 bucks, however, they let it go and next thing you know its a split and its a new $400 windshield.

    drive knowing you have brake issues, get new brakes, few hundred bucks or drive until the rotors are destroyed and now its $1200 plus for new rotors, pads, etc etc

    how about rips, stains, etc in interior from being careless.

    how about dents, dings, scratches, etc from being careless

    how about curb rash ripping the sidewalls, new tires, etc

    like i said, i am ok with pain for brakes, oil and gas but when abuse happens and it shortens the life of the van and the value of the van than when is enough enough

    also, i am not a multi million dollar company or have 20-30 vans, i have 10 and i do anywhere from 2.5 to 3.25 million a year in sales between 13 of us
  10. FWoo45

    FWoo45 Well-Known Member

    Jan 13, 2017
    I'm not trying to say anything bad about your employees but if they're careless enough to do that sort of damage and its bleeding you dry then maybe you should take Mouche's idea and reevaluate how your techs get to use their rigs and/or how it is worked into their compensation package.
  11. Wheels No More

    Wheels No More Long gone

    May 12, 2015
    I'm no expert but I would have them drive there own cars to work and back.
    You provide them company cars for company business.
    Just my solution not sure if it would work in your case or not.
  12. Buckhorn

    Buckhorn Well-Known Member

    Nov 30, 2015
    Being careless with a company owned vehicle isn’t acceptable. We cover all expenses but also wouldn’t tolerate the damage you describe above. Legit wear and tear is one thing but if they can’t treat it like it is their own then they don’t need to have that perk.
  13. 45caldude

    45caldude Well-Known Member

    Apr 12, 2015
    We run black boxes (accelerometers). It enables us to keep track of "personal usage", speeding, excessive braking and let's us set a virtual fence. I'm not sure of the fleet system it is, but I can get back to you tomorrow if you like.

    We also do the same to company cell phones. Can't install an app or use it for excessive personal usage.

    Edit: It also lowers the insurance on the vehicles.
    Last edited: Nov 26, 2018
  14. Stentor

    Stentor NRA Life Member Supporting Addict

    Sep 21, 2015
    A suggestion to consider:
    • Establish a target for total maintenance costs for a van per year
    • Develop a construct where the techs are able to share in a portion of the savings if costs for their van come in below the defined threshold for the year (e.g., they get 1/4 or 1/2 of the savings)
    This "carrot" approach should change behaviors (and costs). As appropriate, you could consider a "stick" element for this--whereby they share in costs above a certain threshold (this might not be feasible with your techs given the local labor market).
  15. Glanoril

    Glanoril Well-Known Member Supporting Addict

    Oct 31, 2015
    Recently the company I work for had to take vehicles away from technicians for the exact same reasons you listed. One of our Impalas was issued to a tech as part of his compensation and he literally drove it until it stopped working, without doing any maintenance other than oil changes (when he felt like it). They even found out after the fact that he would occasionally take the car on a 500+ mile round trip to pick up his kids from his ex-wife's home...

    Now all vehicles are for work related travel only. As techs we get to the office in the morning, gather up our supplies, and take a vehicle to the job site. At the end of the day, we return the vehicle to the office. No company vehicles are taken home and it has saved the company a ton of money in maintenance and fuel costs.

    Honestly I think it works better this way. Techs don't seem to abuse them as much, the costs are kept lower, general maintenance is monitored more closely, and there's no temptation to use them for personal reasons.
    Stogies, boatdoc and WHEELS like this.
  16. Babboonbobo

    Babboonbobo Avatar is back to my favorite things!

    Nov 18, 2014
    Yep company I worked for when I traveled between plants I had a company credit card, I put my expenses on driving my own personal vehicles. Last ten years I worked there I never paid for gas except on personal trips but they where happy about that because it was cheaper than paying me mileage for travel between plants.

    When I had to travel out of town for customer visits or design reviews then I took a company vehicle which were all stationed at the main plant. Worked well and they knew who had what vehicles and how many miles were put on each time, etc!
    boatdoc and WHEELS like this.
  17. Stogies

    Stogies One more please!

    Aug 22, 2015
    It sounds as though you are more annoyed with the mistreatment of your vehicles and lack of respect for you and what you provide for them.
    I own several vehicles that people drive for business and personal.
    I pay everything with one caveat, keep it clean or lose it
    gps man, WHEELS, Jollyroger1 and 3 others like this.
  18. Hairtrigger

    Hairtrigger Active Member

    Sep 27, 2018
    The last company I worked for gave me a Ram 2500 mega cab 4x4
    I work on light construction equipment
    I am on the road all week, every week
    They paid 100% on that truck, realizing that when home only Saturday and Sunday the percentage of personnel miles was small
    I considered it part or my salary and my take home pay was a bit less than guys doing the same for a competitor
    When taking the truck on a personal hunting vacation of course I paid for the fuel
    The company I work for now gives me a very fair vehicle allowance, I drive a Ram Rebel.... trucks are a great way to bond with a customer

    I need to add that I’m the kind of guy that spends company money like my own and treats the vehicles like I own them also
    gps man and Stogies like this.
  19. seawolfxix

    seawolfxix Asker of the Obvious

    Dec 10, 2017
    So employees have to carry two phones if they want to use any non-standard apps? Yikes...
    45caldude likes this.
  20. deadguy

    deadguy Eddie Van Halen Supporting Addict

    Sep 7, 2011
    I often comment to myself on how some service vehicle drivers act on the roads. They often speed way above your normal over-the-speed-limit speeding, they weave through traffic, and rarely use turn signals. I see it day in and day out. When I see this, I think disrespect for the company, and disrespect for those running it. It isn't their vehicle so they couldn't care less about the wear and tear. Many employees see their bosses as loaded rich people who can afford anything and everything, especially "this old truck".

    PG, you have an employee issue, and not a vehicle allowance issue. They disrespect you, your company, and your equipment. If I were to guess, I would say the vehicles incurring the most damage and wear are from the lower level techs. If it's your top level people, I would be surprised.

    Give them an inch, and they will take a mile.

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