Voluntary Termination of VW Finance - HELP!?

dominicruk

Le_Kirk wrote: »

Well, I thought it was quite clear but now explained by others. It normally takes time for a company to organise a company car for new/promoted employees. In the meantime you could offer to use your existing car and they could pay you for the privilege. This might take you a few weeks/months down the line by which time you would be nearer the 50% finance cut-off point with your existing car and it's financial arrangement and it should make it easier to pay off.

The car and position are both ready for me to go, so no waiting around otherwise I would wait.

dominicruk

Lucky_Duck wrote: »

Do they not offer a cash alternative to the company car?

They do but it just doesn't work out beneficial for the amount of miles I'll be doing a year. The car I would get off my own back would depreciate in value so much.

DoaM

But you could use the allowance to take out your own personal contract hire? Which means you could keep the existing vehicle until you VT, then start your own PCH arrangement.

However it's a difficult financial judgement. I've done some quick calculations for my own situation and having the company car still works out better for me than taking an allowance.

dominicruk

DoaM wrote: »

But you could use the allowance to take out your own personal contract hire?

However it's a difficult financial judgement. I've done some quick calculations for my own situation and having the company car still works out better for me than taking an allowance.

I could use the allowance but it makes no sense.
For instance with the company car, I get a 2ltr Audi A3 Sports, company fuelcard and all my servicing and wear and tear covered for £109 a month. You couldn't walk into any dealership at get a deal like that.

DoaM

£109 per month tax paid for Benefit In Kind including fuel benefit? Really?

Comcar website. This calculation assumes an Audi A3 Sportback 2.0 TDI Black Edition 150PS and £35k per year salary. £118 per month without fuel, £250 with. Even reducing the salary (so that total income including BIK means you remain in the 20% income tax band) gives a minimum tax payment of £208.

dominicruk

DoaM wrote: »

£109 per month tax paid for Benefit In Kind including fuel benefit? Really?

This calculation assumes an Audi A3 Sportback 2.0 TDI Black Edition 150PS and £35k per year salary. £118 per month without fuel, £250 with. Even reducing the salary (so that total income including BIK means you remain in the 20% income tax band) gives a minimum tax payment of £208.

I'm not going to divuldge salary and earnings on a public form, but the car you have selected is incorrect. It isn't the black edition, just a 2.0ltr sports edition. I am in the 20% bracket and the car has been worked out as £109 a month with my financal director so I know it is correct.

DoaM

I don't need to know your salary - that was just an example for reference. Here's another one which looks more like what you describe. Minimum taxation is £178.52 (at 20% only income tax rate) with private fuel, so still significantly more than you're saying. If you remove private fuel then the amount due comes down significantly.

Assuming you've made a mistake regarding private fuel then it's possible to estimate your salary.

dominicruk

DoaM wrote: »

I don't need to know your salary - that was just an example for reference. which looks more like what you describe. Minimum taxation is £178.52 (at 20% only income tax rate) with private fuel, so still significantly more than you're saying. If you remove private fuel then the amount due comes down significantly.

Assuming you've made a mistake regarding private fuel then it's possible to estimate your salary.

I have no issues with you guessing my salary, it just isn't something I wish to discuss on a public forum. Nor was it the main bulk of the thread. Thank you though for your help with the original question.

I believe I have everything I need :beer:

Mercdriver

dominicruk wrote: »

They already have a 65 plate Audi A3 Sport available for me which I can have next week. That will be costing roughly £110 a month out of my tax. The option I have is to continue to pay for the VW finance for 8 months though and then try and sell privately.

You'll need to be upfront with both VW and prospective buyers as until the finance is fully paid up it isn't yours to sell. It's quite a common transaction, but a simple £3 HPI check by a prospective buyer will show the car as being subject to a HP agreement. They would pay the finance house the settlement figure and any residue from that to you.

Lucky_Duck_2

Reference cash allowance vs company car, I would have thought taking the allowance for the 8 months until you can VT would be realistic solution.