We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Car contract hire default by the company

JeanJean_2
JeanJean_2 Posts: 10 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 21 March 2021 at 10:56AM in Motoring
Sorry if this has been covered before.  It’s a bit of an unusual question- but what are my rights if the car company ie Renault hasn’t paid the car tax, are they in breach of the contract I have with them?  I have informed them twice, they admitted it’s for them to tax but 3 weeks have passed and it’s still not done.  I assume my insurance is invalid etc if I take it out on the road?  If they are in breach, can I cancel the contract?  
The terms & conditions do not cover them defaulting except under ‘majeure’.  
Any help would be appreciated. 
Thanks JeanJean2 🤞 
«1

Comments

  • Grumpy_chap
    Grumpy_chap Posts: 16,517 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Have you checked the car tax status online?

    Do you know the tax is actually not done with DVLA, or just not "done" as in the disc being posted out to you (or whatever the equivalent notification is these days)?  I would have expected that the large lease companies and manufacturers had an automated process for this type of admin function.

    Cancelling the contract may be rather extreme over a relatively small default.  Maybe a relaxation of payment for the period you can't use the car.
  • JeanJean_2
    JeanJean_2 Posts: 10 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Thank you, yes it’s still untaxed online. 
    I have informed the lease company twice regarding the untaxed vehicle, both times they have said they would get right onto it.   After the first call I just accepted that this would be done so you can imagine my shock when I received a second reminder through the post regarding the untaxed car.  They have records of my calls and requests. 
    I no longer have faith in the company to sort this out.  How many times should I accept that they are going to put it right?

    I’m don’t think cancelling is extreme under the circumstances, by not complying with their part of the  agreement the car is not legal and I have been unable to use it for a few weeks now.   The inconvenience of being without the car is not acceptable. 
     
    Has anyone else come across this problem? 

  • Car_54
    Car_54 Posts: 8,571 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    Thank you, yes it’s still untaxed online. 
    I have informed the lease company twice regarding the untaxed vehicle, both times they have said they would get right onto it.   After the first call I just accepted that this would be done so you can imagine my shock when I received a second reminder through the post regarding the untaxed car.  
    Why are you getting reminders? Isn't Renault the Registered Keeper, in which case DVLA don't have your details?
    If they are not the RK, how can they pay the tax?

  • Grumpy_chap
    Grumpy_chap Posts: 16,517 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker
    I received a second reminder through the post regarding the untaxed car.  
    Seems like DVLA consider it your responsibility to get the car taxed.
    The title of this thread is slightly confusing "Car leasing/contract hire default by the lessor"
    Exactly what financial arrangement do you have?
    • Is it a personal finance product - PCP / HP?  These usually do not include VED in the payments.
    • Is it a "personal lease" or "just add fuel" type product?  These usually do include VED, but not currently offered by Renault according to the Renault website.
    • Is it a business contract hire?  These usually do include VED.
    • Is it a business lease purchase / HP / finance lease?  These usually do not include VED.
    It is critical that the OP knows exactly what type of finance they have and whether VED is or is not included in the agreement.  Using the incorrect terminology can easily cause confusion.  I can quite see an individual phoning the call-centre and saying the VED is overdue on their contract hire car, and the call-centre operative answering based on the statement it is a contract hire that the VED is included, but not referencing the specific contract arrangement covering the OP's registration plate.

    What is the finance deal, OP?
  • JeanJean_2
    JeanJean_2 Posts: 10 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    edited 21 March 2021 at 11:00AM
    Thank you- sorry for any confusion.  
    The car is on a business contract hire but  I do have the log book.  
    The matter has been discussed with them and they agree they are responsible for the VED. 
     
    Part of the contract does state they are responsible for the tax, service, tyres - practically everything.  All I do is fill it with fuel and insure it. 
    From the helpful comments above and looking again at the contract  I now believe I should not have the log book as I only have the car on a contract hire, I assume an error has been made by them regarding who is the keeper. 
  • GrumpyDil
    GrumpyDil Posts: 1,876 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper Combo Breaker
    Have you considered paying the VED yourself and asking them to repay that amount to you. Asking as I don't think they will be able to pay the VED without the log book or reminder. 
  • Absolutely will pay it today and I will contact Renault first thing tomorrow.  
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Thank you- sorry for any confusion.  
    The car is on a business contract hire but  I do have the log book.  
    The matter has been discussed with them and they agree they are responsible for the VED. 
     
    Part of the contract does state they are responsible for the tax, service, tyres - practically everything.  All I do is fill it with fuel and insure it. 
    From the helpful comments above and looking again at the contract  I now believe I should not have the log book as I only have the car on a contract hire, I assume an error has been made by them regarding who is the keeper. 
    If you have the V5C, that explains why they can't tax it...

    How much is the tax? £150?

    Pay it, use the car, chase them for the money.
  • KimJongUn88
    KimJongUn88 Posts: 424 Forumite
    100 Posts Second Anniversary Name Dropper
    In whose name is the V5.
    In whose name are the tax reminders?

  • Car_54
    Car_54 Posts: 8,571 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper

    From the helpful comments above and looking again at the contract  I now believe I should not have the log book as I only have the car on a contract hire, I assume an error has been made by them regarding who is the keeper. 
    Although it's more usual for the hire company to keep the logbook (V5C), there's nothing at all wrong with your having it and being the registered keeper.

Meet your Ambassadors

Categories

  • All Categories
  • 347.2K Banking & Borrowing
  • 251.6K Reduce Debt & Boost Income
  • 451.8K Spending & Discounts
  • 239.4K Work, Benefits & Business
  • 615.3K Mortgages, Homes & Bills
  • 175.1K Life & Family
  • 252.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.