I cannot imagine spending $1,000 per month on any vehicle! Even if you buy a new one, by the time you factor in insurance and maintenance, would it be $1000 a month? (oh, I wouldn't buy a new car either).
You could take the excess of the $1000 and put that away, pay off debt, whatever you need to do with it.
DH has a monthly vehicle allowance, but it is only 10% of what you're being offered (they pay for his gas, too). You should really consider taking the money.
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"...If you have paid your debts, if you have a reserve, even though it be small, then should storms howl about your head, you will have shelter for your [family] and peace in your hearts." - Gordon B Hinckley
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