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Should I take a Higher Paying job, having a tough time deciding! Help me out!

B

BillHarrison

macrumors 6502
Original poster
Jul 25, 2003
332
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Hi all. I am a long time forum member and since many here at the forum probably are well trained and have financial degrees (Something I don't have and have never done well with!) I am asking for any opinions educated or otherwise!

I am an auto mechanic, with many years experience (I am 36 and have been working on cars in some way since I graduated). I have no college degree, only a high school diploma. I am ASE certified in 4 areas.

I worked for a small used car lot from 2004 until Dec 2011, when I was laid off due to slow sales. I took a position at a New Car dealer then, for less than I was making working at the used car lot, partially because I was out of work and partially because I was interested in receiving further training which could be provided by the dealership. The dealership had 4 brands, Subaru, Porsche, Audi and Mazda. I primarily started working with Mazda and Subaru, and started at 14$ per hour, paid hourly.

A few weeks ago I was referred by an acquaintance to someone who needed some help at a garage, somewhat of a freelance position. I did a small job for him, and he was impressed and offered to hire me full time as he had lost his main mechanic. This is a small shop, not a branded dealership, that primarily does work for a local rv shop, and his friends and family. He initially offered a dollar more than I was making, which I declined.

He has now offered 3$ more an hour than I currently making for a total of 17$ hourly, and I am having a tough time deciding whether to take the position. Its a small shop, no healthcare, etc. is offered. I have decent healthcare at the larger dealership, which I pay about 120 a month for. Also being a smaller shop, I have some concerns of long term stability, as compared to a dealership with 50+ years in business. However, the pay increase is substantial.

I discussed it with my current employer, and they said that they felt I had long term potential, and in 2-3 years with training could be making what he is offering me, however that is 2-3 years from now and I could be making more all along. They said they could not offer me more money at this time.

So, in summation, I can make 14$ an hour here, or 17$ there. He is offering to split the cost of a private healthcare plan, which I found for approx 200 monthly which places my healthcare in the same price range, although the plan is not as inclusive as my current, I generally am healthy and have not often used the healthcare I have had so far. I keep the plan more for disaster insurance as opposed to using it frequently. I will get more training where I currently am, on the brands we sell, which I guess has some value, but of course immediately does nothing to put money in my pocket. Financially I am not really saving anything right now as my income is just about balanced with my outgoing payments, and am worried about the future because all I have invested in to date is social security which seems like it may not be a sure thing.

The future at the smaller shop is a bit of an unknown, and is keeping me somewhat on the fence, as while there are definitely no guarantees anywhere, I am confident where I am will be around in 10 years, the smaller place I cannot say that with any confidence.

The difference yearly to start works out to about 480 monthly x 12 or 5760 yearly.

This is a tough decision, can anyone give me a few pointers in helping me make it?
 
I had already started thinking about stability before you mentioned you had mulled that over.

Personally, I would prefer the stability of the dealership.

You could express your continued interest in freelance work at the independent shop. If he's willing to hire you on full-time perhaps he'll be willing to hire you on part time. (Rather have some of you as opposed to none of you. :p ) (Actually, thinking more about this, this might be the best case scenario; the benefits and stability of the dealership with the extra money from freelancing at the independent shop.)

In the short term, you could be more aggressive with the dealership about a structured training plan with a guarantee that as you hit certain training certifications, your hourly wage would increase accordingly.
 
I would also look at how much the cost of your insurance would go up - that may even things up a little, depending on what type of coverage you are getting from the dealership insurance.
 
Wait wait wait, an ASE certified mechanic making only $14 an hour?! Is the cost of living where you are super low or something?
 
My initial reaction is that you should stay at your current job, which sounds more stable. But I think that your decision should be made in the context of your medium and long term financial and other goals, taking into account many factors that you probably wouldn't (and shouldn't) be comfortable sharing on an Internet forum, such as projected earning power in five or ten years, living arrangements, and so on. What you need is a trusted financial advisor/coach. They're not inexpensive, but you may be able to find one at low or minimum cost through a non-profit organization in your area. As I'm sure you know, raising a child is a very expensive undertaking, so planning is key.
 
bizzle said:
Wait wait wait, an ASE certified mechanic making only $14 an hour?! Is the cost of living where you are super low or something?
Click to expand...

Its a bit low but its Ohio so the cost of living is lower. However it is a low pay for a certified mechanic.
 
well you should factor in the health benefits into the cost. It could be a lower paying job not a hire paying one after you put in that factor.
 
I stopped reading at no healthcare. You're 36 and while probably healthy, you work in a field where you can easily be hurt. Worker's comp isn't going to take care of everything should anything terrible happen. $3.00 more an hour isn't worth it to me unless you're saying you'll bank that money for a rainy day should anything terrible happen. I doubt that to be the case though so no, I would not take it.
 
I'd stay, the money isn't worth giving up the security. I'm a bit shocked you told your current employer though. Not the best move in my opinion. Good luck though.
 
jessica. said:
I stopped reading at no healthcare. You're 36 and while probably healthy, you work in a field where you can easily be hurt. Worker's comp isn't going to take care of everything should anything terrible happen. $3.00 more an hour isn't worth it to me unless you're saying you'll bank that money for a rainy day should anything terrible happen. I doubt that to be the case though so no, I would not take it.
Click to expand...

yeah I have to agree. I did a quick calculation. 3 bucks more an hour is a around 500 a month (assuming 40 hour work week)

I am going to be hard press that health insurance for him and his kid provided by the company comes in under that amount and I have a feeling the dealership is paying more than 500 a month for his health insurance.
 
My son is covered under his mothers plan she has good family coverage that exceeds mine. So i only i need coverage which i havw found around 200 a month which he offered to split. This is a blue anthem blue shield no deductible plan. So insurance isnt a huge concern. I am thinking hard on the long term. Thanks for the advice guys i really am taking it to heart.
 
I'm guessing that since you work at a Porsche dealership you live in a populated area. Why not keep adding certifications while looking for a better job at another dealership?
 
Or, with his skills, he can create additional business for the independent, as word-of-mouth spreads. And it does.

And that should be followed with raises, and perhaps additional appreciation from his employer. Like a partnership? It could happen, if he is driven enough in his love of the work, and his skill.

It is a gamble, but how far can he go at the dealership?
 
Large dealership: Security, certified training, more social interaction, resources for help if you need it, more reliable benefits.

Small company: The owner can make your life pleasant or a living hell. Be sure you know this guy well. How does he react under stress? Is he fair minded or cheap? Is he thinking of retiring someday? Can you learn the business angle from him also? Importantly, why did the other mechanic leave?

$14 per hour seems low to me too. I thought skilled mechanics were in demand.
 
You're looking at this the wrong way. Freelance requires you to be paid more or you'll actually walk away with less. Assuming we're talking about something like 1099 payment, this would mean you're paying self employment tax rates which include 100% of your SS payments, and you are not anywhere near high enough in income to max out that portion.

The way you should be evaluating this is whether the other job is a good job relative to your situation. It doesn't look like it, but if you were considering it, you should keep your eye on other jobs that may become available at higher pay rates.
 
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