Medical device sales can be a challenging career. But like most outside sales jobs it comes with some serious perks. One of the most common questions we receive is about the car allowance or company car. In the article, we will comprehensively address the medical device sales car allowance.
Medical Sales Company Car
Medical device sales jobs require a lot of travel. There is no way this is going to come out of your own pocket. In my busiest travel stretches, I have put over 40,000 miles on my car in a single year. I have put upwards of 100,000 miles over a three year stretch. Different companies reimburse reps in different ways.
In my opinion, the best offering is the company car. The company provides the car, insurance, and a gas card. This means the company covers all the costs and liability of driving. In addition, to covering repair and maintenance expenses. This is common at large companies which have thousands of reps. The companies have a fleet service that manages all the logistics.
Related: Medical Device Sales Lifestyle
The only downside is the tax treatment of this. The IRS is pretty sophisticated in tracking fringe benefits. So typically, reps have to pay a small amount out of pocket to cover any personal use. This ends up being around $100-150 per month. The reasoning for this is a company can not provide the perk of having the car for personal use, without taxing that benefit.
Medical Device Sales Car Allowance
Smaller companies find it easier to provide a car allowance. They do this so they do not have to pay a fleet service to manage all of the details of providing company cars. This has some unique benefits as well. The car allowance rates are usually a bit higher than what is needed to cover your car expenses. This means there can sometimes be a little bit of a perk built in. Especially if you are able to keep your car expenses down.
I do not like the liability aspect of this model. Nothing provides peace of mind like a company car. Sales reps spend more time than almost anyone on the road. This means at some point you are bound to have an accident. It is reassuring to know that the company will cover the any expenses. This type of situation gets more complex under the car allowance model. As remember, you technically own the own car. You are just getting reimbursed for the use. Make sure you understand the implications of an accident under the car allowance structure.
How Much Is A Company Car Worth In Salary Terms?
Cars are expensive. Even more so when you drive as much as a sales rep does. The cost of a car, gas, and insurance really add up over time. This means a company car is a serious perk. When looking for a new job make sure to factor this value in with the compensation package.
The monthly value of a company car is in the $600-$1000 range. Annually the value is $8,3000 according to the International Centre for Trade and Sustainable Development (ICTSD). Not bad.