Getting company truck - what should we do with current vehicles?

[Redraidernurse]

My husband has just been promoted to vice president of operations of his company. He received a company truck and a company gas card. Both of our vehicles are paid off, the kelley blue book values being $6,500 (truck) and $12,000 (car). We currently don't need to upgrade to a bigger vehicle, but would like to when we have a third child, within the next year or two (currently have two kids). My question is that one of our vehicles will be collecting dust due to the fact that we don't need three vehicles, so should we sell one? Sell both and upgrade to a larger vehicle now? The most comfortable one to have the 2 kids is in the truck so if we sold one we would prefer to sell the 12k car. But it sure stinks selling something that is paid off and nothing is wrong with it, other than it's not going to be used.

[siggy_freud]

If it were me, I would probably keep the vehicle and change insurance to make it a recreational vehicle with a mileage limit per year.

Does the company have limitations on what he can use the vehicle for? Business only, or is it pretty much his to do with as he wants?

[bjl584]

Does the company have limitations on what he can use the vehicle for? Business only, or is it pretty much his to do with as he wants?

I agree wth this. The answer to this question would help shape my answer.

[Redraidernurse]

At this time there is no policy governing use of the vehicle for personal use, but he does have to cover gas for personal use.

If it makes a difference the truck is a 2001 with 96k miles. The car is a 2008 with 60k miles.

[bjl584]

It may be a good idea to hold onto the car for now. If in 6 months the job doesn't work out or if your husband doesn't like it, then it would be a shame to have to go out and buy another car.

[snafu]

The car has likely already taken it's hit for depreciation 2012. If you retain it to 'wait and see' try to make that decision before summer 2013 when the car takes another hit for depreciation. KBB is merely a convenient benchmark. You could set the price higher as it will have lower mileage and could be valued as a 'cream puff' if it were detailed and polished inside and out.

[SnoopyCool]

We were in this situation a few years back. DH was given a company truck and was able to drive it for personal use, so we sold his truck.

Fast forward 6 or so months - the company tanked and he had to turn the co. truck back into the owners; DH was left without a vehicle. We bought another truck, but they say hind-sight is 20/20. This being the case, we would have kept his personal truck had we known what was around the bend.

I say keep the vehicle and change insurance coverage, as has been suggested by another poster. Sure, you may never have this experience, but I'd at least sit on the decision for a bit before moving forward.

[gostumpy]

I'd sell, you can always buy another They're not going up in price!

[JustBill]

Only your husband knows the long-term job prospects with his situation. But unless you either need the money captured from the sale, or the physical space consumed by whichever vehicle you'd sell, I would keep the surplus vehicle at least for the short term. I've seen many good people sent home in cabs who once had company vehicles when their employment ended.

[WestonT]

With them being paid off, I don't see any reason why you wouldn't keep the cars. Unless you really want to make some extra money. It's nice to have another car around, in case something happens.

[MiikeB]

I would sell the 12k car IF you can commit to taking the proceeds from the sale and set them aside in an account and not touch them except for another vehicle purchase.

You plan on getting another car eventually anyway, no need to keep eating depreciation on a car that you are going to sell later if you are not going to be driving it, but you don't want to sell the car, spend the money and be in a situation in 6 months or a year where you need that money for another car but instead you remodeled the kitchen or bought some toys.

[Redraidernurse]

I would sell the 12k car IF you can commit to taking the proceeds from the sale and set them aside in an account and not touch them except for another vehicle purchase.

You plan on getting another car eventually anyway, no need to keep eating depreciation on a car that you are going to sell later if you are not going to be driving it, but you don't want to sell the car, spend the money and be in a situation in 6 months or a year where you need that money for another car but instead you remodeled the kitchen or bought some toys.

I agree. We wouldn't spend the money. We would do as you said and put it in a mutual fund until it is needed to someday purchase a new-to-us vehicle. I don't forsee us needing to use the car. So I think we will ride it out for a few months and then move towards selling the car before it continues to depreciate.

[nimisht]

As of now, at least on the East Coast, the market is great for used cars. You may at least want to get "feelers" before you decide on whether or not to sell.