Car loan from employer - just been dismissed!

megane87

Hi everyone, can you help me? I got a car loan from my company as it is integral in my sector to drive, I have only paid off around £1,000 of a £4,000 loan and I have just been dismissed. What can they do can they take the car from me even if I say I will still make payments? I need a car to be able to gain employment so do I have rights in regards to that as they will be stopping me from getting another job if they were to reposess the car.

Please help

Common_Sense_2

Sorry to hear that,

best read the terms and conditions of your loan agreement in conjunction with your employment contract

megane87

I did and it said upon termination of the contract the amount becomes immediatley payable and may be deducted from any amount being paid from them. However they have paid me and paid my notice period too, without deducting anything from it. I have a different car from the car I initially bought with the loan as the first car was written off. I'm in such a mess.

Tixy

Did they advance you the money and then you went out and bought the car with that money?
Did you purchase the car in your name and get an invoice in your name?

megane87

I purchased the car in my name, they paid a cheque directly to the seller from themselves.

Tixy

Very unlikely they could take the car from you.

The loan agreement from your employer would have to specifically state that they could - and would also need to be legal (which I can't see how it could be). I doubt you have anything to worry about. Though you will need to come to an agreement with them to repay the loan. If you don't they could potentially take you to court to obtain a CCJ against you, so you need to try to work out a repayment deal they are happy with.

ILW

Were you sacked for misconduct or anything?

If not, they may be being generous and just letting it go, stranger things have happened.

megane87

I was sacked because of a "conflict of interest", I'm appealing it but either way as of right now I am dismissed. I doubt they will just let it go lol.

Ninjawombat

You need to double check the terms. It might be different but as far as the car loan agreement goes in my old company - the company gives you the money to buy the car, the car is in your name but until you pay it off, the car is OWNED by the company. If you leave before the end of the loan, you are asked to either pay them the remainder to keep the car or give them the car back. It's the same for our bicycle loans also.

Wallhart

Surely the only thing they can do is request the money. In theory the person owns 1k of it. I know that may not legally be the case but I can't see why the employer would not accept a repayment plan.

megane87

I hope so, it's bad enough as it is but I can't get a job without the use of my own vehicle so I'd basically be stuffed!