New Job - Company Car Dilemma

SeanG79

Speak to the finance company, they may allow you to sell the vehicle, provided the buyer make payment directly to them and then allow you to pay the remainder in instalments, equal to your current monthly payments.

SeanG79

BrassicWoman wrote: »

oh dear. I might SORN it to save the tax nd insurance and save like a mad thing for a few months, I am afraid.

You cannot do this, the terms and conditions of the finance agreement will be that the vehicle must have fully comprehensive insurance. If they do a search and the vehicle does not show as insured, they will repossess the vehicle or insure the vehicle on their own policy and charge you for this

Moonmonkey71_2

SeanG79 wrote: »

You cannot do this, the terms and conditions of the finance agreement will be that the vehicle must have fully comprehensive insurance. If they do a search and the vehicle does not show as insured, they will repossess the vehicle or insure the vehicle on their own policy and charge you for this

Blimey - wasn't aware of that! I wonder if I can get some kind of stripped down policy to cover the vehicle while it's not being used?

SeanG79

Moonmonkey71 wrote: »

Blimey - wasn't aware of that! I wonder if I can get some kind of stripped down policy to cover the vehicle while it's not being used?

Standard condition in the T&C's on vehicle finance agreements are usually as follows:

You must insure and keep the Goods insured at all times under a fully comprehensive policy at your expense to their full replacement value. The insurance must include cover against the risk of loss or damage by fire, theft, accident and other risks, including third party risks, as are normally insured against in the case of goods of the type to which this Agreement relates.

Check your copy of your finance agreement before cancelling or downgrading your insurance policy

stator

Insuring it with an annual mileage of <1000 should keep the premium down a bit. There is one PAYG insurance company, they are a bit of a pain to deal with, but if you need insurance for just a few months it works out cheaper. It works out more expensive if you keep it for a whole year though.

Sinhanada

Check with the new company you are joining. Some offer an allowance in lieu of a lease and this may benefit you in the logner term?

BrassicWoman

So sorry, yes, of course it needs insuring, didn't think!

ReadingTim

Moonmonkey71 wrote: »

I just received the settlement figure from the finance company and it's roughly £800 - £1000 more than I reckon I'll be able to sell the car for.

Moonmonkey71 wrote: »

My outgoings are pretty low and I have a fair bit of disposable income

If your disposable income is high, and the difference between the settlement amount and the likely sale price of the car relatively low, why not take the job now, but defer taking the company car for a few months, during which you'll have saved like mad to make up that £1k difference...?

Moonmonkey71_2

ReadingTim wrote: »

If your disposable income is high, and the difference between the settlement amount and the likely sale price of the car relatively low, why not take the job now, but defer taking the company car for a few months, during which you'll have saved like mad to make up that £1k difference...?

I might try and ask the question but I have a feeling things are already in progress. I'm really not sure what the reason is that there's not an option for car allowance instead of a car - tax purposes perhaps?

ReadingTim

Moonmonkey71 wrote: »

I'm really not sure what the reason is that there's not an option for car allowance instead of a car - tax purposes perhaps?

Unlikely - the car is simply a perk of the job/grade etc, and therefore it's within the company's gift whether to offer it (or not), and what (if any) the alternatives to it are. I've worked at places where it's either the car or nothing, so it's not that unusual.

Just tell them you have a car already, and won't be taking them up on their offer for a few months while you decide what to do with your existing car.