I’ve outgrown my chevy extended 1 ton van. I’m employee. Boss was going to buy me a box truck in 2001 but got worried after 9/11/01. He’s been covering all costs since on my van. I told him I need the bigger truck and I’ll buy but I need a raise. Now he’s ready to buy or I buy & get a raise.
Now we need to figure out what works best for both of us. I’d like to buy it so I’ll have the say in what I’m driving. Also it’s a new tool! I love new tools. DW says it’s up to me but of course we’ll have the payment.
Boss is struggling with taking on the payment but says he’s ready with $5,000 down.
I’ll be talking with boss and looking at trucks next week. I’m thinking used $12-15’000 16′ box truck with tailgate lift. Boss thinks deisel I’m not sure about noise and smell. (I spend 3 hrs. a day in Seattle traffic)
I’m asking your imput on the whole situation including who should pay for labor and material to set up the van, what your thoughts are on what we should look for in a truck,etc..
I’ve worked for this guy 4 years and plan to stay. I provide most of the tools we use on a daily basis so the truck will help the company out either way. Small company, me, boss, 2 other carpenters.
Smile. It could be worse. You could be me working for you.
Replies
How well do you know/trust your boss? If he can guarantee you a per mile or month tax deductible allowance then that would be a good way to go, as long as it covered your costs. I prefer to have my own truck as well.....lets me trick it out the way i like.......I like my stereo :) http://members.sounddomain.com/sledbc I sure as hell aint installing it in someone elses truck :) and i sure dont want MY personal truck being driven by everyone else either.... You'll probably end up with a nicer/neater truck this way, though less responsibility/time is involved if your boss provides the truck for you......I guess there's advantages to both.
I once owned/drove a 10' box van in a similar situation. A clear delineation on ownership/responsibility is necessary. If it's your truck, it's your labor/material that's added to the acquisition cost to determine the value your boss is getting the benefit from.
My agreement was a per mile consideration. All costs were mine, including the insurance that came into play when it burned with a full load of tools. Not all of the tools were mine. That was potentially messy but we worked it out satisfactorily. That you already provide most of the tools seems strange, but your providing the truck would fit right in. Be certain you know what you're getting into with insurance.
You undoubtedly already know you're signing up for a substantially higher floor than your current van. The electric lift on the truck I bought to move with, worked great but wasn't something I'd want to have to use multiple times/day. There's also a large difference between driving (and parking) your van and the truck you're considering. Having owned both gas and diesel I wouldn't consider gas. I'm way out of date for recommending trucks as my last purchase was a '69 deuce-and-a-half, but you would do well to investigate others' experiences with various engines, particularly diesel where repair costs can be astronomic.
You're going to LOVE the head room if you're used to a standard height van. Good luck.
PAHS Designer/Builder- Bury it!
If I were you , I would want to own the vehicle and voucher him for repayment on a mileage basis, so many cents permile at a reasonable and realistic rate.
If I were your boss, I would wnat to pay you for mileage used on the job at a realistic and reasonable rate so that I could avoid the long term commintment and be able to cost out the useage perjob.
The only issue that way might be on some large commercial and govt jobs where proof of certain kinds and levels of insurance be presentated for all vehicles on property in question. he should be sure his business insurance covers him from liabilities involving your vehicle.
Excellence is its own reward!
Thanks for your thoughts guys. I am concerned about climbing in and out. I'm thinking of making light weight stairs with 12" risers I can slide onto the lift. I know 12" is a bit high for code but I seem to manage it on ladders. Ramp takes too much length. No big commercial or government work but insurance is a concern. I'll call my agent this week and ask boss to talk to his.
It is odd that I provide most tools. It's because I love to buy new tools, I keep them working , I keep my truck organized and I like to carry pretty much every tool I own with me. Smile. It could be worse. You could be me working for you.
I think you really need to talk to an accountant. The boss must have one, maybe the 3 of you could sit down for 1/2 hour? Although it's the boss's accountant, so be aware.
To my knowledge, any payment (down payment, mileage, etc.) the boss makes would be a taxable benefit for me (I'm Canadian). But you should be able to write off depreciation, etc.
Regards,
Tim Ruttan
Someone advised talking to an accountant. I agree.
DW is a Home Health nurse and gets mileage comp for her vehicle. The US Postal system does the same for many of the rural carriers, who own their own vehicles.
In DW's case, her vehicle comp payments from the Hospital (her employer) are not taxable.
It's not a great deal, but has benefits for both employee and employer.
And it keeps you in the driver's seat.
Let the boss pay for everything.
The truck, shelves, labor to install the shelves, and your time to go look at the truck, set it up, et cet er a et cet er a......
This is hardly something you would use for personal transportation.
As a matter of fact, the extra efficiency that will go into work, he'll be able to afford that raise you are talking about.
A few basic questions.
Who asumes the risk in the company? As in, who makes the profit? Does your boss make a proposal for a job, lets say a kitchen built in seat, at say $2000, based on $400 in materials, and the rest in labor. Does he then get the job, hand it to you, and say "Should get this done in 2.5 or 3 days tops.."? If so, does your hourly wage equal the labor portion of the job, or is there significant profit left over?
I'm assuming that he makes a profit on your labor. As you are providing the tools, what is he providing? Security? Comp and insurance, etc.? I assume he's running a business, and most businesses provide the tools, the work area and the security to employees in exchange for making profit on the time and materials they sell.
It seems to me that other than the leads, the only thing left that he's providing is the infrastructure items like ins., etc. I think most companies would look at that as a pretty good position to be in.
He could: finance the thing, and pay next to nothing per month, and write a lot of that off.
Or, he could allow you to own it, but pay you the amount required to insure, run and maintain it. This can easily be done in extra wage, but the danger there is you won't get it all, as it will get taxed. An accountant can help here.
Also, do you carry other carpenters in it on the way to certain jobs? What happens if the unthinkable occurs, and a guy runs a red light right when your passenger is unbuckling his seatbelt to get something out of his pocket, and goes through the windsheild? I don't know if I would want to be driving around in a company truck, essentially, but have the insurance in my name. Risk exposure needs to be considered as well.
It does get thorny! Good advise on the accountant.
But I keep coming back to the basic philosophy that the guy making the profit should be the same guy bearing the risk and the costs.
(Maybe another option would be to buy an enclosed trailer and leave it at the big jobs, acting as an out side shop with the "stationary tools" in it, and get a van with those cool side access panels.) Less is more?
Jake Gulick
[email protected]
CarriageHouse Design
Black Rock, CT
Edited 11/24/2003 7:24:25 PM ET by LATEAPEX911