Company car taken away

Pint_of_Gem

I was told today that when the finance agreement on my current car, through an Employee Car Ownership Scheme (ECO) finishes in March 2011 it will not be replaced and I will not be getting a replacement vehicle.

While looking online today I have found that essentially the company I work for can do what they want, however I was after advice on how to put my case forward that this is, essentially, a pay cut.

When I started at the company over 4 years ago, a company car was provided as part of the package. When that was due for renewal I was forced to go onto this ECO scheme, despite voicing my objections at the time.

Recently I flagged up the fact that the finance agreement was due to end in March, so if a new car was to be ordered then the company may want to think about ordering soon, etc. When I was told (no consultation) today that I will no longer have a car as part of my package it was said with the line, 'you have the option to buy the car' and also 'you won't pay as much tax'. Do they really expect me to be happy with this?!

Sorry about the rant. Anyone got any advice on tactics to try and either save the car provision or negotiate suitable remuneration to replace this benefit?

Savvy_Sue

Given the number of people who have chosen to move from a company provided car to providing their own because they ARE better off that way, I'm not sure how successful you would be at saying this is a pay cut.

Have you taken a detailed look at the figures?

DVardysShadow

Take it on the chin. And don't insure your own car for company business.

Sambucus_Nigra

You will of course get an allowance to fund a car yourself? And a decent mileage rate?

Savvy_Sue

BTW, I'm not saying that I can't see the benefit of having a company car over providing your own: we used to have one in the days when it really was a 'perk' worth having, and very nice it was too when you just bowled into the garage, drove away in a courtesy car until the problem was fixed, and didn't have to pick up the bill.

But tax has changed since then!

Pint_of_Gem

Sambucus_Nigra wrote: »

You will of course get an allowance to fund a car yourself? And a decent mileage rate?

No. I have been told that there is no replacement and no car allowance.

I most certainly will not be insuring my own car for work purposes. They can swing for it.

I am currently looking into the law of the benefit of having a company car. Someone told me that if I have had it for more than 4 years (I have) then it legally forms part of my contract. At the moment they are saying it doesn't form part of my contract and they can take away the car at any point. They won't do this until March (as they would be liable for an early cancellation charge) so are effectively giving me plenty of notice, but no consultation whatsoever. "The decision has been made".

I have done the 'raw' figures. Currently work give me £350-odd per month to pay for the car. This works out at £4200 per annum. The tax on this works out about £100 per month, I reckon. I cannot see how I can finance a car on that amount (excluding fuel, as I have to pay for my private miles at the moment, anyway).

I am livid about this, but just need some ideas as to tactics in negotiation with the company. This is the point I am currently at:
They are taking away the perk of having a company car
OK, I accept that they will no longer provide me with a car
I view that the perk of having a car formed part of my remuneration package
As this is being removed then it is effectively a reduction in my package.
I want this recognised and rectified.

CapJ

How often do you use a car for work? If it is a lot it may be worth pointing out the car would be cheaper than taxis / rail fares etc - since you will not have a car available for work purposes.

Spendless

I would give ACAS a ring and ask them about it tbh. I just asked my DH (a company car owner) and he says that a company car IS part of your package and points out that when his former employers made anyone redundant/put them on gardening leave either they kept the car or were financially compensated if the car was taken back. He says he's just not sure if it's the same with you mentioning the ECO scheme, hence my suggestion you clarify it with someone who will know.

Bobl

It depends on what your contract or offer letter says. Not all Company Cars (or allowance) is a contracted right, some are 'job related' which can be taken away at any time.

If the Car is a 'perk' they can take it away without your agreement as longs as they 'consult' you; which they have in plenty of time.

Check your contract and post what it says.

Sambucus_Nigra

Pint_of_Gem wrote: »

No. I have been told that there is no replacement and no car allowance.

I most certainly will not be insuring my own car for work purposes. They can swing for it.


I have done the 'raw' figures. Currently work give me £350-odd per month to pay for the car. This works out at £4200 per annum.

I am livid about this,

I can see you are livid but you need to calm down and think rationally.

You said there is no allowance, then mention £350 a month to pay for the car. Is this a new amount?

If you take this money and use it for getting around, how much will that cost you a month? How often do you travel and how far? What are the arrangements for travel time?

If you bought a car for, say, 4k; and used that money to go towards it; how much would your mileage be from them?

I had a company car for years and much preferred the allowance, and mine was £350 per month at 25p/40p mileage rates. The miles I do more than pays for the car even at my current rates [no allowance at all as I work for a charity].

Look at all the options and work out a month by month costing and then negotiate with them a suitable recompense.

Bobl

You say you have been receiving £350 per month to pay for the Car you have now, that is a Car Allowance and is in line with what most other companies pay. Will they continue to pay you this? If so then you still have the perk and can either:

a. Buy a Car with a Loan and pay the loan from the £350
b. Lease a Car using the £350

This is a bit confusing now, can you make it clear if you will still receive the £350 per month Car Allowance you are currently receiving?