Exiting a Salary Maxing Car Scheme

lauhols

I took out a salary maxing car scheme with my employer 18months ago as a 3 year agreement. It seemed the right decision at the time, but due to some unexpected events, the car no longer suits our needs and we are not feeling the financial benefit we thought we would.

Does anyone know if it's possible to terminate these agreements without extortionate early termination fees? I know that for PCP agreements you can voluntarily terminate after certain points, does anything like this apply to these schemes?

Any help much appreciated.

agrinnall

Surely it depends on the terms and conditions of the particular scheme your employer uses? I'm not sure it would be of much help for anyone to tell you what other schemes allow.

bigadaj

Absolutely depends on the terms and conditions you signed up to.

Even in situations where you can VT on a finance agreement then a large part of teh agreement has to be laid before you can get out of the payments.

System

What financial benefit did you expect to feel buying a new car on finance and spending £100s a month in repayments whilst its value tanks by 2/3rds in the first few years?

Other than a £600 a year or so saving through reduced income tax there is little difference from going and financing a new car from a dealers. You're still going to be shelling out a load of money and paying for the lion's share of the depreciation, it is still going to have maintenance costs.

jimmo

Never heard of a salary maxing car scheme but a quick google suggests its actually an NHS salary sacrifice scheme.
□ If that is the case you have entered into a legally binding agreement with your employer that your salary will be reduced for 3 years in exchange for a company car. As part of that agreement your employer has leased the car for 3 years from a leasing company.
□ If you look around this forum you will see lots of references to voluntary termination (of PCPs) but that can't apply to you because you have not taken out a PCP.
You really need to talk to your employer about this.

bigadaj

It really does make you wonder about the knowledge of many NHS staff, it's obviously a huge organisation with a wide range of education, knowledge and ability but not being able to project a fixed budget ahead for a couple of years is a basic ability that should be possessed by the vast majority of the population.

More annoyingly for the rest if us this is a subsidised car scheme, typically provided to those who don't have a particular need for a car for their work, which is more expensive and adds costs to the running of the NHS.