According to a 2011 survey on vehicle-related perks conducted by World at Work, the average monthly car allowance ranges from $500 to $900, depending on the employee’s employment. Executives typically earn automobile allowances between $1,000 and $2,000 annually. The majority of sales agents, directors, and managers receive a car allowance.
A automobile allowance covers the costs of gas, maintenance, and insurance for a personal vehicle used for business purposes. Different companies provide different car allowance plans, with some offering a taxable flat-rate car allowance. In 2015, the IRS established a rate of 57.5 cents per mile for corporate mileage.
