A car provided by your employer is worth a lot. amirite?

It's kind of the point Your friend gets equivalent to you in pay and benefits But the employer pays less because of tax/benefits reasons for supplying a company car

by ApplicationHot 1 year ago

Isn't your friend paying some form of tax for using a company car as a benefit?

by pollichverla 1 year ago

In many countries, there are significant tax breaks for company cars compared to the employer paying the equivalent amount as salary and the employee owning their own car. This further benefits the employer because it encourages the employee to adapt a car-dependent lifestyle but they will lose access to the car if they change jobs, which creates a barrier to labor mobility.

by Anonymous 1 year ago

That sounds really evil in a way. Binding people to the job by giving them something they need and threatening having that thing go away if they change jobs. OP having his own car and making more money is the real winner here because while he still is left with about as much money as his friend, in terms of freedom and life flexibility he has the upper hand.

by mariliefeest 1 year ago

Binding people to the job by giving them something they need and threatening having that thing go away if they change jobs Now you know why the US healthcare system is for-profit 😏😆

by Carlee01 1 year ago

Gotta keep the middle-class, middle-class!

by Carlee01 1 year ago

I would much prefer to not be paying for my own car, especially if I'm earning significantly less.

by Anonymous 1 year ago

That is quite fair, but if you're earning more then it balances out, no?

by mariliefeest 1 year ago

Exactly. I still would say OP having more flexibility changing jobs is better though

by mariliefeest 1 year ago

Frick you!!!

by mariliefeest 1 year ago

That's the business optimising their taxes/employment costs. You are fully aware that the company car is part of your package, and you will likely earn less because of it. You either sign the contract, or you negotiate something else, or you just look for something else if the offered package doesn't work for you. I don't see anything toxic in that.

by Ok-Tangerine-3092 1 year ago

Unless it's worthless. An ex got a company car instead of a raise. But she lived 2km from work and just rode a bike there. The car would have rusted solid if we didn't use it for road trips.

by Wolfbarrett 1 year ago

I earn good money but have an expensive mortgage payment. Someone earning half butiving in a owned appointment is living better.

by MangoIndependent 1 year ago

Funny thing is if you calculate that in high tax countries like Germany for 650net you would need to earn 1200 more per month which is 14400€ per year.

by AggressiveThought 1 year ago

Don't forget that there are still tax consequences to getting access to a car too so while it is good, it might not be great as you think it is in terms of total savings.

by SharpAd 1 year ago