Should I Use My Employer's Car Lease Benefit?
Ethan is in Detroit High Ethan. Welcome to the Dave Ramsey show. Doing great man how can we help? I word for an automotive maker manufacturer and engineer there. Can One of the company perks or benefits I guess. That they offer is a employee leaf option, right? So I I can get a vehicle. It's a one year lease. Yep a London Mile with insurance included YEP and repairs. Repairs Maintenance wrinkly Irish included everything's included. Yep and prior to. Working there I was paying around two hundred insurance. Idea of And I'm debating. So my current payment is around five fifty and actually brought my wife's and on the program recently. I'm debating even worth it to carry that. The Fowler. The lease on your employment on your employees deal. Yeah Okay. You're on and you're driving a nice car. Yeah it is. It's a truck. You you didn't take. You didn't take the cheaper chicken you got the big dog. Well Who is Ford. Our Jeanne outs. I. Chrysler Oh. Okay. All right. Well, I've looked at several of these Nissan is here in our neighborhood I've looked at the Ford one. I've looked at the GM. Went off the top of my head but most of these have nothing to do with a traditional card lease. It's an employee benefit program. You're basically got a car completely furnished miles everything insurance everything's built in at five fifty. You can't touch that truck for that. Truck goes down five, hundred, fifty dollars a month in value if you own it. And you got insurance and maintenance and gas and everything they include gas don't they some of them Goodson doesn't okay but it's got everything is maintenance included. All maintenance. So car breaks, you just take it in. Yeah. So this is not a this is an employee benefit. This not lie to Lee. Not, Your Evil Carly's program right that the other side of your company sales. But this is a great deal for you Ethan driving around. Yeah. It's a round. where? I, thought you were thought. Dadgum usually, it's not five fifty. It's usually like three hundred when I'm running into these things but you got your driving seventy thousand dollars truck. That's the thing. So good for you. You cannot touch that truck for that kind of money it's six grand a year and everything's G. if I worked there I would do that deal. This is not a finance plan. This is not a lease. This is a simple employee benefit and it is a killer employee benefit do it I guess we're kind of debating knows. So my wife is on it too. She has a wrangler. Yeah, and I'm wondering if it's worth to have two vehicles on that, we're trying to get something cheaper off. Let me try this again, you cannot operate a vehicle for three times what you're paying. Car Think. About. It add insurance. Maintenance depreciation. In value right now, put those three numbers in the calculator. Do the truck you're driving it takes fifteen, hundred, fourteen, hundred dollars a month to replace it. Okay because a stupid things going down in value more than you're paying a month, not counting the maintenance in the insurance. And the same for her now. The question is. Can you afford? Are you? Are you biting off too big a bite of the apple here is your household income, support these payments but the bottom line is if you if they support these payments and you were to buy this vehicle, you're going to have three ex in the vehicle what you're paying. Okay so it's a great deal. Do as many as you need to do as long as you can handle the cash flow out of their income, which is unbelievable. So would a situation like this? Dave, if you were to leave the company, you're just turning in the vehicle. Yeah you lost it. You lost your employee benefits. You lost it. Okay. And you and you do need to flip it every year because they're they're flipping these things out that you know it's a small percentage of their total production under the employees right but the Nissan plan is very similar. Right down here, the road from us the the Ford is very similar. I've seen those and BMW's and other one's got. They've got one that's pretty similar to the guys over in south, Carolina that listen to us over there at the beamer plant It's got the same option and driving a stink in beamer for a third a fourth of what it would cost you. Anyone else. To buy it outside of that employees listen everybody out there that's listening real quick. We're talking about an employee benefit program not nataly idolise yeah, I. Don't don't don't blow up men box with this It's an employee benefit plan, which is why people were able to do that. So it's part of their recruiting. It's part of the benefits that they're given to their team members. So just wanted to clarify that. Yeah. In his case on that layer worth hit the employee benefit. The value to him is around a thousand dollars a month because it'd be fifteen hundred to replace what he's doing for five hundred. Oh. Yeah. His truck payment. Yeah Without A. That's another twelve thousand dollars a year in income are effectively his benny package is adding. Another two thousand dollars a year to his value again, assuming you can support that level of truck with your income. We not ask Denka I got sidetracked on that. But as Chris said, it's very, very, very smart to say. out loud. We are not saying it's okay at least a car this is not leasing a carton. This renting from your employee employer has a benefit that's all as they call it a one year lease, but you can turn it anytime. You want I don't even hold you to that on this. Very, very good.