I have been offered either a company car or have mileage paid on my personal vehicle. The problem is that the company car would be a new Ford minivan (which I loathe) and minimally equipped (not even cruise control!).

On the other hand, my car is an 18 year old 300E with 120,000 miles. The car is in excellent condition and I really enjoy driving it as it has all the features I enjoy (quiet, solid, safe).

The company mileage would be extensive at about 25,000 miles per year, in all seasons. Travel is typically long distance paved highways with minor distances of gravel and industrial road surfaces. I am reimbursed about $0.60/mile but I absorb all the costs and risks. As I see it these costs would barely cover the fully loaded cost of running my own car although it looks good if there are no big repair bills and you ignore the depreciation. The car has 120,000 miles on it now and it will have 200,000 miles on it in 3 years time. I expect that the car will have minimal resale value at that point.

I would appreciate your comments in this decision. Is the 300E generally reliable at this point in its age and mileage? What would be the probable repair items that may occur with this kind of driving? Would it be better to just suckup the deficiencies of the minivan and leave the ownership risks with someone else? Others who have used their own vehicle have generally stated that they are out a couple of hundred dollars each month but they are leasing new vehicles and paying for dealership maintenance and excess mileage charges.

I would appreciate your point of view as I would like to make an informed decision and balance the cost risks with my own personal enjoyment and safety while driving.

Appreciate your responses!

Paul

Honestly, I don't think the resale value will vary too much unless the car ends up in considerably worse condition than it is now. And since it will be mostly highway miles, it should hold together perfectly fine. 60c a mile comes out to be 15k a year before taxes. I'm sure you can buy three more 300e's with that money. This choice should really be a no-brainer.

I was put in a position like that a long time ago (about 1980-1981).

My job would require extensive daily driving around Northern California especially around the San Francisco area. I didn't know how extensive it would be, but did know it would be a lot.

The deal: The company would pay me up to $100 per month towards a car payment or cash if I kept the car I already had, plus all the gasoline I had to purchase, PLUS all the gasoline i used for personal recreational purposes, and on the weekends (and the boss said, I swear, "But don't take your girlfriend to Maine and Bangor"

But, any repairs and insurance were to be my own responsibility.

I had a 1972 Buick Skylark Custom sport sedan at the time but it already had 140,000 miles on it and it was a real gas guzzler. The boss suggested I buy a brand new K car (Lee Iacocca's wonder) the Dodge Aries I think it was....yuccck.

I thought this was my chance to finally get my first Mercedes, so I went and looked at used 1977 240 and 300 diesels, and really liked them, but the bank wouldn't finance them.

So, I wound up with a very nice looking 1977 Olds Delta 88 Royale coupe with 39,000 miles on it, an ex- company car for a printing company in SF that I found at the Olds dealer in Oakland.

Oh man, I was driving all the time. It was over 1000 miles a week, every week, just for business. After that, I was too tired to drive places on the weekends. That's 48,000 miles a year!

I was taking the car in every other week for an oil change, and that car was luxurious, but it had it's share of problems, and it cost plenty to keep it going.

So, in the end it was a wash. I suspect the boss knew he was going to have me on the road all the time, and the deal didn't hurt him at all, and knew I would be too worn out to drive much for fun while he paid the cars's gas. The mileage I racked up was enormous. (So it was worth it to get a comfortable and safe car).

I'm really sorry I didn't get to buy the Mercedes 240 or 300 Diesel (there were quite a few nice ones around in those days). I might even still have it today. Not that Olds, after 100,000 miles it began to fall to pieces. It was junked LONG before 1990

Being on the road that much, get the car that suits you best. I'd think the van would be pretty uncomfortable, after a long distance drive, so after awhile you would really feel hammered, and let's face it, they are not the most comfortable, good handling or safest thing out there. But I wouldn't think you would want to use up your personal car in the service of a job either. Though your Benz is ideal for this kind of service, and comfortable, long lasting and safe, so it could work.

When you are out on the road every day all the time, you just about see it all, every possible scenario. May be best to face it in a safe reliable car like a Mercedes

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1991 560 SEC AMG, 199k <---- 300 hp 10:1 ECE euro HV ...

1995 E 420, 170k "The Red Plum" (sold)

2015 BMW 535i xdrive awd Stage 1 DINAN, 6k, <----364 hp

1967 Mercury Cougar, 49k

2013 Jaguar XF, 20k <----340 hp Supercharged, All Wheel Drive (sold)

Take the company car. Let them pay the personal property tax, insurance, gas, and maintanence as well as deal with the depreciation. I'm not sure but I don't think you would have to be responsible for paying any income tax as a result of the company providing you with a car.

Been there, done that.
Take the company vehicle!!!
You'll enjoy driving your own car, everytime you get into it.

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2007 C 230 Sport.

I will stick to my story, because I have been around this block many times.

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2007 C 230 Sport.

Good to see you have several opinions to consider.

My opinion is that its a no-brainer to take the 60 cents a mile and drive the MB for all its worth. I presume you don't have to haul anything that would wear or damage the car.

The mileage you put on the car in a highway situation is the easiest mileage you can get - you won't wear the car all that much as long as you keep up with the maintenance.

I have done this previously with with a newer vehicle (small pickup truck). That truck now has 350k+ miles on it, never had engine work, and still runs fine. Plus I have extracted a significant portion of the money I paid for it with the mileage reimbursement.

I wish I could be in your situation with one of my old Mercedes diesels.

Extract all the money you can and enjoy driving at the same time.

Ken300D

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1982 300D at 351K miles
1984 300SD at 217K miles
1987 300D at 370K miles

Tassie, I'd opt for the .60 per mile ... you'll be driving in a car that's comfortable and safe. As mentioned highway miles are easy on the engine which should be good for hundreds of thousands of miles with regular oil changes and maintenance. If your 300E is pristine and you're worried about it sitting out all the time look for another 124 car to use specifically for business. The numbers cover that situation too. No way would I want to drive a Ford minivan any distance.

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Fred Hoelzle

Been there, done that!

I spent about nine years driving 60,000 to 70,000 miles per year on mileage. As I recall, mileage was 25 cents per mile when I started doing this in about '89. I ran my 240D about 400,000 miles and then a new 96 E300D.

I bought the 240D almost new (17,000 miles) and after I retired it, I sat down and added up ALL expenses involved including purchase price, fuel, tires, taxes, insurance, maintenance... I mean EVERYTHING and I came out $16,000 to the good over that period of time. Now, I did all the service work myself, so if I had been paying for service it would have been a different number, but I expect that it would have been in my favor.

I can speak for myself only, but for me I would drive my own car rather than a company Tinny Van every time. I enjoy driving and an MB is a much more enjoyable car to drive.

My $0.02,

Of course, driving a Prius, your clients will take one look at you when you pull-up and think one of two things:

1. What a great guy, doing his bit for the environment.

2. Bloody hippy!

If you showed up at my door with a Prius, I would'nt let you in.

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2007 C 230 Sport.

Actually, they would think otherwise.

"It's amazing how the MB marque gives many the impression of wealth, as most neophytes cannot distinguish the price point of an 18-yr old W126 from an 07 S500...to them they are ALL Mercedes!

I still get nods for my ailling 300E..."

In my experience, as with almost ever decision like this, it depends. It depends on the sales or service scenario. Are the customers always new or infrequent sales calls? Are the visits to the same customers over and over? Are you calling on the boss or underlings? Etc. Etc.

It also depends on whether said old MB is a nice one or a junky looking one.
In my traveling adventures, self-employed consultant, I have driven ''90 300E, '92 300E Sportline, and now '97 S320. You are correct that most people are impressed. I take pains to explain that the cars are old and cheap. Sales psychology varies depending on the audience.

Of course, I don't have the choice of a free company car. Actually, way back in the '80's when the employee owned vehicle program begain at my corporation, I was the maverick.
I happened upon a '79 300CD with 50K for sale by a friend. Believe me, I took major flack from management, co-workers, and customers. They got over it and I was happy in a very safey , butt friendly car.

Steve

Steve

25,000 Miles per year at $0.60 per Mile is $15,000 in your pocket (tax free).

Would it really be 25,000 Miles per year and for how many years? Assuming yes, then figure out if the projected $15,000 covers your liability.

By my math $15,000 covers things nicely even with a gas hog like the 300E. You own it already and it essentially has zero resell value. Why not maintain it to the hilt and drive it into the ground. The big variable is the maintenance investment needed to make it 100%, mission critical reliable.

Assuming 25,000 Miles per year:

Gas - Figure 20 MPG so 1,250 Gallons at $3.00 is ~$3,750
Insurance, registration, inspection ~$1,250

The property itself has almost no value now, so take that out of the equation.

Now decide if you can keep it on the road at 100% reliability for $10,000 per year. Is there enough wiggle room/profit to justify the risk?

To me, this is model where otherwise valueless Mercedes make the MOST sense.

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Michael

1988 300 SL (5 Speed)
1994 E320 Wagon
1997 C230

With your estimate of 80,000 miles in 3 years, you're looking at $48,000.

i would

1) buy a diesel 300SD 1980-1985
2) fix it up to burn WVO so that you can puill up to a restuarant and fill er up for free.
3) pocket the .60 per miles

my 2¢

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Closing the store
Benzbonz.biz on your smart phone or tablet.

Some of these opinions are all over the place and dont compute. Take the company vehicle, they pay for the fuel, the maintenace, the insurance. Your car is way too old to pile on 25,000 miles per year. There has to be a reason they are giving you a van, are you hauling things, if you are broken into on your personal car is it covered? If you tell them it is for business your policy will jump. There are questions, how will they treat personal mileage (an easy fudge) I had a 25car fleet they were replaced every 4 years and or 65,0000. Our people were not re-embursed from the mileage to the first sales call (IRS) issue, but they figured out if they went to their post office box for company "mail" all mileage is buisinees and they padded the logs. We finally gave up let them drive the cars, reasonably, and re-emburse us for their personal mileage. (IRS)
You will find keeping records, and using your car as a buisiness tool is envolved, your customers will not be impressed by the MB vehicle, but rather by your skills and common sense. Your .60 cents a mile is reoprted to the (IRS) If you are really serious, lease a vehicle, and write off the lease payments agaist you car allowance, otherwise you could be taxed if the company paid you more than you can justify items as operating expense. If you had it washed, company pays, if you do it does not apply.
I had a $100 million, operation we offered a 4 year opt out, (for ego people who wanted Cadillacs rather than Taurus)) and they all came back as their leases came up...whining!