Sales Reps:Company Car or Car Allowance? – which one is best?

Candidates sometimes ask which is best: company car or allowance? So we thought we would allow you (the reader) to tell us what you think. Many candidates like the allowance because you can choose your car and don’t have to worry about driving record issues either. But companies need to know that I think that the company car is more “sticky” for the employer. What do I mean? I think reps with companies that have car allowances are more likely to leave (those companies have higher turnover) than companies with company car plans (all other things being equal). Many times, it is the small things that stop change cold in its tracks. Having to consider buying a car and the insurance, etc that go with it will stop many reps from considering a position without a car plan.

Tell us in the comments what your experiences are?



Written by Peggy McKee - the medical sales recruiter
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Comments

14 Responses to “Sales Reps:Company Car or Car Allowance? – which one is best?”

  1. Jim Carson on March 4th, 2009 11:03 am

    Company car or car allowance?

    I have always had the company car. There are certainly advantages with this, but I wouldn’t mind an allowance so I can pick my own choice. Perhaps a hybrid vehicle. The other consideration is more important: If you have only driven a company vehicle for more than 3 years and then you want a second car and have not had your own insurance policy in 3 or more years, you will automatically be placed into the assigned risk (much higher insurance rates) category, even if you have a clean driving record. At least in my state.

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  14. rodney on February 1st, 2010 6:35 pm

    The issue is How much allowance are you to receive? If you are not receiving minimum of $ 750.00 per month than it may not be a true car allowance. If you use a vehicle strictly for work you have your payment, insurance, fuel cost, regular maintenance (oil changes), and wear and tear what does that cost per year strictly for work?

    $280.00 for fuel per month for work only this is not for all other things as mentioned above. I only receive $ 440.00 per month from the company.