# Fair vehicle reimbursement



## otislilly (May 30, 2012)

katoman said:


> Lots of good answers already. I think you should be getting something extra for using your truck. How much will depend on negotiating with your employer.
> 
> Sidebar - the cost of owning a current vehicle is about $7/hr. That does not include fuel. I've crunched that number many times and always comes out about the same.
> 
> That covers replacement cost, insurance & repairs/maintainance.


WOW, surely you dont think someone should pay an extra 7/hr to someone whom is using thier own vehicle every now and then.
I would like to know how you crunch the numbers. 
cause not one of my guys spends, 40x7/hr = 280 a week on thier vehicles. 
thats 1,120 a month, 


I would like to see you break that down, and teach me something!!
how do you figure replacement costs????????
Just pretend I am an Idiot, and be as spicific as you can. 
If you have done it many times, it shouldnt take but a few minutes.


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## otislilly (May 30, 2012)

TxElectrician said:


> When I started out, and for the first 10 years we did mostly large projects where the crew would be on the same job for months at a time.
> 
> I have run 20 men with 2 or 3 trucks because they reported to and stayed at the same job everyday. Material was delivered to the jobsite.
> 
> ...


awesome, you say you ran 20 men with 2 or 3 trucks, now that is impressive. Please tell me exactly how you did that with atleast 10 or more using thier own vehicles to get to the jobs. or was 2 of them employees just delivering people to the jobsites and back. 
I am not trying to be argumentative, i would just like to understand what YOU said.

as you will read on post #13 here. anyone using thier vehicles for company use are compensated, both by being paid for thier time, and milage that is wrote on thier timesheet. which is very rare.
but getting to and from work is not my responsibility, nor is having everyone come to the shop, when some live less than 5 miles to our work area, and shop is 15. 

So at this time I understand that you started out with big jobs, and more than 1 truck when you opened the doors, moving 20 people from the shop to the workplace in 2 or 3 trucks, is this correct.


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## katoman (Apr 26, 2009)

No, I don't think the employer should pay that to the employee. I was just stating what it costs to stay in a decent vehicle.

Here you go -

Cost of new vehicle 40,000, less trade in let's say 30,000, spread over a 4 year term is 625/month. That includes finance costs.

Commercial Insurance about 100/month.

Vehicle maintainance-that's oil changes, new tires, some repairs as needed, etc. let's say 175/month.

Then there's things like new roof rack, commercial vehicle sticker, signage, etc. let's say another 50/month.

That totals 950/month divided by 160 hrs = $6.00/hr.

Close enough, I must be missing something :laughing:


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## TxElectrician (May 21, 2008)

otislilly said:


> awesome, you say you ran 20 men with 2 or 3 trucks, now that is impressive. Please tell me exactly how you did that with atleast 10 or more using thier own vehicles to get to the jobs. or was 2 of them employees just delivering people to the jobsites and back.
> I am not trying to be argumentative, i would just like to understand what YOU said.
> 
> as you will read on post #13 here. anyone using thier vehicles for company use are compensated, both by being paid for thier time, and milage that is wrote on thier timesheet. which is very rare.
> ...



Leads drove company trucks to site. All others reported to site. Really isn't that hard to understand.


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## otislilly (May 30, 2012)

katoman said:


> No, I don't think the employer should pay that to the employee. I was just stating what it costs to stay in a decent vehicle.
> 
> Here you go -
> 
> ...


yep your right, :thumbsup: sure does appear to be the facts, and man am I :thumbup::clap: that I wont ever have that problem. I just recon i am too country/simple to put that kind of load on my family/company.
I was actually thinking about it, and using this older truck for a company vehicle, but you talked me slap out of that.
oh by the way that other dollar must have been that replacement cost factored in, still kind of curious how you only devide it by the working hrs. but fair enough. I have been schooled.


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## katoman (Apr 26, 2009)

I divide it by the working hours to get a handle on how much a month it costs me. This is reflected in how much an hour I charge.

At one point I bought a brand new pickup. I decided I would keep it a long time and just keep fixing it. Rather than replace every four years.

I kept every bill for repairs. I had that truck for ten years. 

Guess what - it still cost me the same amount when I broke it down to cost per month. You just can't win.

So I just charge more. :thumbup:


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## BamBamm5144 (Jul 12, 2008)

Gee someone is argumentative.

Guys drive their own vehicles to the job site except the foreman who takes the van & trailer to the job site each morning. On repair days, the van is used and there is no problem.

When the salesman wants to run his own vehicle on sales calls for whatever reason he may have, he gets reimbursed the mileage from the office to the sales call. This is all recorded in a mileage log and includes time of departure and arrival.

One employee has a pick up and he will occasionally haul things or pick something up at the supply house on his way in. As soon as that item is picked up, he gets paid mileage and is on the clock.

I know I would never allow a boss to think my personal vehicle can be used to his benefit without compensation.

Treat your guys well and they'll show their appreciation with hard, quality work.


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## otislilly (May 30, 2012)

TxElectrician said:


> Leads drove company trucks to site. All others reported to site. Really isn't that hard to understand.


I understood that, I was just funnin you a little.
I think I speak for many people that are not in a position yet to make that jump.
when you said 
I don't understand not having company vehicles, especially if your the majority of your jobs are short term.
Its because we cant afford to have them yet.
starting small, chasing the American dream. 
Clawing our way up with every check.

Now that you are pursuing other avenues, I hope you never have to make the decision between not being able to afford insurance and maintainance on that fleet of trucks/ keeping one of the guys.
when I have a day or 2 that I dont need everyone on the site,I send them to my house to mow the grass or something so they can get thier hrs on my dime. We are obviously in 2 different worlds, but it sounds like you are getting closer to my neighborhood. I didnt mean to offend, just wanted to make you think, hoping you could see in from the outside for a minute.
My posts were relevent to the OT that being go talk to boss, fair compensation for using a personal vehicle for company needs should be worked out. Everyone has a different situation, but I can tell you this, I dont have, nor will have anyone just there for the check.
I have worked with many of these over the years, and they are a moral as well as a production killer. If we all work together as a unit, and each of us go some extra distance, the company will succeed, and the raises, and perks will follow. 
in short if you are working for a company that is getting its footing in the market, talk to boss about honest compensation for anything considered above- the over and beyond that every employee should be giving thier company, not only to destinguish themselves as true bloodgivers, but also so it can succeed for the betterment of all. The ones that bled, and were loyal are the ones in the company trucks when days are brighter arent they.
If you are working for a company that is established in the market, and the boss drives a brand new truck, that costs him $7 hour to maintain, and a new boat, then I say tell him to cough up or pound sand. only you know your situation. 
Only you can decide if a little of something is better than alot of nothing. He aint being fair, take your truck with the ladder-rack, and slap your sign on it. Use your lifes savings or Borrow enough for Insurance and compensation, and do it on your own. Thats how the rest of us got here, see how things look when you are growing into your own company Young Buck, and you should have 2 company trucks, with insurance, and fuel, for your other employee to pick up at your shop, just incase they need to go get something.


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## katoman (Apr 26, 2009)

Oooowwww, my eyes. 

Paragraphs, please. I couldn't read all that.

When I first started out I bought a used 1966 ford econoline van for $500. bucks. Loved that van.

We hear ya, been there. Don't just work hard, work smart, and you'll get there.:thumbsup:


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## otislilly (May 30, 2012)

katoman said:


> Oooowwww, my eyes.
> 
> Paragraphs, please. I couldn't read all that.
> 
> ...


whats a paragraph? 
If it couldnt be measured, cut, sanded, nailed, glued,..........etc.
I never cared much for it, still dont.
pay attention long you"ll notice I dont know where to use , either. I dont always make i 's I, but I figure a i and a I makes the same sound. so someones reading problem, is just that. thier problem LOL
oh yeah my spelling aint no good either. 

New paragraph, take a second and breath, ok. But if the best someone has to jab at me about is my grammer skills, its cool, I have broad sholders to carry that load. 
I do truly appriciate you bringing that to my attention though, so I can try and represent myself better. That was real thoughtfull of you. thanks :laughing:


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## katoman (Apr 26, 2009)

That's pretty funny. You'll fit in well here. Very creative.


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## Oconomowoc (Oct 13, 2011)

Katoman is dead nuts accurate on the math. Many people don't know the price of poker to be in business. The actual cost of a vehicle is why I drive new stuff.


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## Oconomowoc (Oct 13, 2011)

@ Young buck

Once you said you were the only person with a truck rack I understood this story completely. 

Start driving a motorcycle to work. That way your boss understands what it really costs to be in business like the rest of us.


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## otislilly (May 30, 2012)

Oconomowoc said:


> Katoman is dead nuts accurate on the math. Many people don't know the price of poker to be in business. The actual cost of a vehicle is why I drive new stuff.


 Then I am just lucky, I have owned my current truck for 3 years, bought it from the plumbers when they got new trucks, it only a 1998
pickup, with ladder racks and toolbox/ with 2 side saddle boxes..
sold the truck that I had previously owned for 5 years for same amount I paid for this one..$750.00 I have bought a set of tires for it every year about $600.00 insurance about $100 month. and maintainance, change oil, no problems yet. well, there was a battery.
so i dont even need to do the math to know that that truck costs me about 200 a month. + gas. 

oh yeah I hit a dear in December, insurance paid me $2,250 but it cost me $475 to fix it. 

average all that over the 3 yrs I have owned it, and the aproximate 6240 hrs ( only work time, the personal time is free) about 95 cents a hour. and here is the best part, no payments so next month it will go down .9685 cents and guys with new trucks at $7. hehehehehehe
I just realized what a raise I have gotten. I'm gonna take the wife out for breakfast. 
oh yeah replacement............ 2,000 dollars every day of the week and twice at the auctions on Sat. drive it till the wheels fall off.

yeah not exactly dead nuts but close.
sort of like them people that buy newer cars to save gas, 6 more miles to gallon, for $500 payment
or the ones that drive to gas station thats the cheapest just for gas, wait in line 20 min, with air on, to save 7 cents a gallon on gas and when they fill up thier car that has a 20 gallon tank, they are smiling.
( they saved what?) not dead nuts, but close.:no::laughing:


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## Oconomowoc (Oct 13, 2011)

otislilly said:


> Then I am just lucky, I have owned my current truck for 3 years, bought it from the plumbers when they got new trucks, it only a 1998
> pickup, with ladder racks and toolbox/ with 2 side saddle boxes..
> sold the truck that I had previously owned for 5 years for same amount I paid for this one..$750.00 I have bought a set of tires for it every year about $600.00 insurance about $100 month. and maintainance, change oil, no problems yet. well, there was a battery.
> so i dont even need to do the math to know that that truck costs me about 200 a month. + gas.
> ...


I hope you don't take this the wrong way but a $750 truck compared to a new vehicle isn't even in the ball park of being the same thing. My customers buy my vehicles for me and I work too hard to drive cheap vehicles that are wore out. 

The difference is apples and oranges. I prefer to own the first half of the vehicles life. Some people prefer to own the second half. 

The customer will buy both. I'll take door number one.


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## otislilly (May 30, 2012)

Oconomowoc said:


> I hope you don't take this the wrong way but a $750 truck compared to a new vehicle isn't even in the ball park of being the same thing. My customers buy my vehicles for me and I work too hard to drive cheap vehicles that are wore out.
> 
> The difference is apples and oranges. I prefer to own the first half of the vehicles life. Some people prefer to own the second half.
> 
> The customer will buy both. I'll take door number one.


well there is that!


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## Young_Buck (Jul 19, 2009)

Wow, lots of stuff to address.

Tinstaafl: I am being paid peanuts. I'm about to make a pitch to him regarding my compensation for a number of reasons. I just lost my health insurance (turned 26), and started taking on his overhead by using my vehicle this way.

I am making $18/hour with no benefits. I could match my effective take home making $10/hour in an office, taking public transit. $18/hour with no benefits is an absolute steal for a guy who shows up with a hammer, belt, and skill saw. I show up with ... well, I just posted a picture of my truck a while ago, and that's all my personal gear, which I maintain..

Katoman: that seems kind of high to me, but I haven't done the numbers. Would you be interested in showing your work? I'd really like to see that.

BammBamm: The company truck (his personal truck, with commercial plates and a logo) used to have racks, and it was used by employees. For some reason he got rid of the racks a year ago, and put a soft tonneau on it.

Oconomowoc: I truly appreciate the advice. I have considered getting a big hog with a small trailer for a couple tools. :thumbup:


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## Oconomowoc (Oct 13, 2011)

Young_Buck said:


> Wow, lots of stuff to address.
> 
> Tinstaafl: I am being paid peanuts. I'm about to make a pitch to him regarding my compensation for a number of reasons. I just lost my health insurance (turned 26), and started taking on his overhead by using my vehicle this way.
> 
> ...


You don't understand what I'm saying. Drive a motorcycle so your boss is forced to buy a truck and run a real business instead of trashing yours and getting away with it.


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## Young_Buck (Jul 19, 2009)

I hear ya. But what do you think about a bicycle? :laughing:


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## Oconomowoc (Oct 13, 2011)

Young_Buck said:


> I hear ya. But what do you think about a bicycle? :laughing:


Yeah, wear a speedo and a wifebeater shirt. Lol


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