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Car Forum / Mercedes-Benz Cars / March 2007

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Does an employer get to control employees what cars to drive if they receive car allowance?

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mizuhot@gmail.com - 28 Feb 2007 19:17 GMT
Can an employer provide a certain amount of "car allowance" to
employees, and then force those employees to drive vehicles that are
higher than a certain class (in another word, not allow them to drive
crappy cars) and force them to renew the vehicles in a certain
frequency (so they can maintain the "nice look" of the cars)? I do not
think that companies are allowed to force these things to their
employees just because they provide "car allowance", but I could not
find any reference material that refers this issue. Any advice will be
helpful. Thanks!
-->> T.G. Lambach <<-- - 28 Feb 2007 21:40 GMT
A "car allowance" is just that, a car allowance - a cash payment or
additional income directed towards the cost of owning/leasing a car.

If an employer wants to go beyond the concept of an allowance, which is,
after all, a no strings attached "you take care of it" payment then that
employer ought to lease whatever car(s) that employer feels is
appropriate. One can't be "hands off" by paying an allowance but then
set conditions or standards.

However, also think of it from the employer's viewpoint - we pay a car
allowance so an employee can drive a decent and reliable (and insured)
car and then someone pockets the cash and drives (i.e. represents US) a
junker that's embarrassing, breaks down etc. etc. That wasn't the idea.

Such compensation arrangements require a certain level of good faith and
fair dealing - from both sides. Your post implies that's missing.
Signature

© 2007 T.G.Lambach. Publication in any form requires prior written
permission.

trader4@optonline.net - 01 Mar 2007 04:09 GMT
On Feb 28, 4:40 pm, "-->> T.G. Lambach <<--" <"T.G. Lambach at
NoHamorSpamcomcast.net"> wrote:
> A "car allowance" is just that, a car allowance - a cash payment or
> additional income directed towards the cost of owning/leasing a car.
[quoted text clipped - 4 lines]
> appropriate. One can't be "hands off" by paying an allowance but then
> set conditions or standards.

They sure can set standards.   Usually companies give employees an
allowance because the vehicle is going to be used in the course of
business.  An example would be an employee in outside sales with the
vehicle being used for sales calls which may require others from the
company being transported, taking customers to lunch, etc.   It's
prefectly reasonable for the company to have standards that say the
car has to be 4 door, less than 4 years old, maintained in proper
condition, etc.    Another example would be a field service employee,
with the vehicle being required to be an SUV or similar so that it can
trasport eqpt.

Most larger companies now offer fleet lease vehicles, because it's
more advantageous to them for tax purposes.   But any that do give a
monthly allowance most certainly can and do set standards for the
vehicles.  It doesn't imply any lack of good faith.   In fact, it's a
very good idea to avoid problems.   If a company is paying for it and
expects you to be driving a 4 door car for sales calls, it's better to
know the standards up front and in writing, rather than to find out
after you buy a corvette.

> However, also think of it from the employer's viewpoint - we pay a car
> allowance so an employee can drive a decent and reliable (and insured)
[quoted text clipped - 6 lines]
> © 2007 T.G.Lambach. Publication in any form requires prior written
> permission.
cothrom - 01 Mar 2007 14:01 GMT
> Can an employer provide a certain amount of "car allowance" to
> employees, and then force those employees to drive vehicles that are
[quoted text clipped - 5 lines]
> find any reference material that refers this issue. Any advice will be
> helpful. Thanks!

Well, I worked as an IT/IS manager for 3 rehab centers on the East coast
for about 11 years.  From my second year I was given what they called a
"car allowance" which consisted of a Jeep Grand Cherokee and a gas card,
they paid registration/tax/insurance/fuel/maint. I did it for 3 years
getting a new one every year.  When I opted out of the car allowance
instead I received $23K more in my pay per year!  Guess what I am saying
is that it is really the SOP for each company whether you get a certain
amount to buy what you want, or they dictate what you will drive. Being
based out of NH the Jeep was a good enough snow vehicle, but not my
first choice :)
biodieselbob - 01 Mar 2007 16:04 GMT
If you are just griping to vent, okay.  I have been in the very
uncomfortable position of not getting pay raises because I saved my
money, "had too nice of a car" (translation= newer than my boss's),
had a larger home than my boss's, didn't have wife and children to
support, had rental properties, so on and so forth.  I left those
clowns after I established myself and had earned my credentials in my
industry.  If you are looking for answer(s), the previous replies were
really good.  If I may add to those replies to further the discussion:

1.  Is the agreement in writing anywhere?  If it is, please read it.
The responsibilities most likely will be spelled out for both
parties.  "If you don't care to put it in writing, then you really
don't care."

2. Have you talked with your immediate boss about this?  Meaning that
both people act as adults, no arguing, just ask for facts from each
other.  If you work for a car manufacturer or other company where
specific brand loyalty is an issue, then you need to find that out.
If there is another issue, then find out the specifics.  Demonstrate
your leadership and negotiation skills - if you allow people to walk
all over you without saying anything, they will.

3. Is the money received being spent as it should be?  Have receipts.
A clean (means interior as well as exterior - you don't want the
inside of the car looking like you need to rent a leaf blower to clean
it out),  well maintained older vehicle should not present a
problem.

4. If it is an issue of affordability, then be up front about it.  Do
your homework about how much a newer car (that fits your employer's
standards) would set you back and the ensuing insurance, upkeep, et
cetera, would not be offset by the vehicle allowance.  Ask your
employer if there is a discount rate for company employees at any
dealerships.

5. All things being the same (except rules for vehicle allowance) -
find another employer.

Hope this helps.
hbg007_11@msn.com - 02 Mar 2007 03:27 GMT
On Feb 28, 2:17 pm, mizu...@gmail.com wrote:
> Can an employer provide a certain amount of "car allowance" to
> employees, and then force those employees to drive vehicles that are
[quoted text clipped - 5 lines]
> find any reference material that refers this issue. Any advice will be
> helpful. Thanks!

iNTERESTING YOU KNOW YOUR LUCKY BUT I UNDERSTAND A HUMAN HAS RIGHTS
UNLESS YOU SIGHNED A CONTRACT. THEN YOUR LEIAGATION HAS NO GROUNDS
 
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