What is an acceptable car allowance from my employer?

Answer by  kperegrine (102)

You need to take the gas mileage, usage, increased insurance costs and wear and tear into consideration. Most employers pay the IRS approved rate/mile if you are driving as part of your job requirements. If your pay is based on miles, then .65 to 1.50/mile is acceptable.

Answer by  LadyElisabeth (52)

Car allowance should be based on a national average cost of auto insurance, gas and other maintenance costs such as oil changes, tuneups, per mile and not on the model of vehicle driven. A fair mileage allowance currently is .55 to be revised based on the price of gas.

Answer by  Kenny (18)

Normally companies pay from 40-75 cents per mile for personal vehicle usage. 55 cents seems to be the current norm. More or less depending on what the vehicle is being used for.

Answer by  gary23 (130)

Information provided in here is not enough to conclude to what is an acceptable car allowance. Are you using your own vehicle for every day operations? Are you vehicle is properly insured? Your job description within the company? Allowances are usually set on per mile basis.