On 1/11/2011 3:19 PM, Don Q wrote:
> On 2011-01-11 12:46:49 -0500, "miker" > said:
>
>>> The company told him they would pay, subject to approval, 80% of the
>>> purchase price and 80% of fuel.
>>
>> Trick question. Clearly the answer is "Whatever is the most expensive car
>> they will go along with". Then quit and sell it.
>>
>> Freeway or backroads? Mountain or plain?
>>
>> miker
>
> I am pretty sure there are contingency clauses that prohibit these
> games. Anyway, even if you could get away with it, unless you are immune
> to the current economy you'll realize that for most of us a long term
> job is worth more than a few grand from a shady deal. So a serious
> answer to your tongue in cheek...
>
> Good question. I believe almost all paved, ice and snow more often than
> gravel and dirt. No mountains, just the odd hill.
>

he might have been thinking something like a $500k maybec that could
potentially yield you a nice chunk of change.
but i can't help but wonder about the tax consequences of this proposition.
if the employer is reimbursing you for any or all of the car that would
probably be taxable income, and that means it would cost you at least
30% out of pocket. so say you got a $40,000 car and your employer paid
you $32,000 (80% of the value), it would cost you at least $9,600 in
taxes plus the 20% or $8,000, making it more like they were only
offering to pay you only 50% of the cost of the car for you to use
mostly for work. doesn't sound so attractive to me, particularly if you
were to buy a new car that looses much of it value the instant its
wheels roll off the dealers lot. i suggest either suggesting the
employer purchases the car outright themselves as well as pay for the
insurance and they simply lend it to you, otherwise it doesn't strike me
as generous but rather a good way for them to save a tremendous amount
of money by not having to buy it themselves. i know you asked about
what model car to consider, but the actual cost of the car to you is an
important part of the decision and the tax consequences are a key part
of that equation.