New company car scheme

jessy1

Can anyone offer any information on a company car scheme where the individual signs the car lease scheme in their own name after the company/ employer pays the car lease deposit and then I cover from own salary monthly car lease repayments. Zero information provided to me on how much this monthly payment will cost me. I am worried this will eat a huge chunk out of my monthly salary.

tizerbelle

I'd be worried about a bit more than that.  If you sign the lease paperwork, you are leasing the car.  So you'll be responsible for the monthly payments and any excess mileage / damage costs at the end of the lease.  And if you should happen to lose your job, you'll still be stuck with a leased car to pay for.

ETA: Who's paying for the insurance?

AdrianC

Sounds like some kind of salary sacrifice. It certainly isn't a company car.

Cisco001

Ask your employer... 

jessy1

Thanks for all replies. It’s a new scheme apparently with employer being vague themselves. Insurance included in deposit and car stays with employer if I leave - confused oh well…….

Jenni_D

I've had a couple of company cars over the past few years (and a new one on order) and I have never had to sign a lease agreement. If you sign then it seems more like a personal lease - and I've have the same reservations as mentioned previously above.

bob_a_builder

jessy1 said:

Thanks for all replies. It’s a new scheme apparently with employer being vague themselves. Insurance included in deposit and car stays with employer if I leave - confused oh well…….

Cant see why you would want/need  to sign the lease then !

No room for  'vague' with any financial commitments 

piperm87

I've had a few, waiting for my new one to come but keep getting an different ETA just to microchip shortages.

Never heard of that scheme though. Mines classed as a benefit in kind which i chose off a list and the company orders and pays for, i just get taxed to high heaven for using it

Grumpy_chap

jessy1 said:

Can anyone offer any information on a company car scheme where the individual signs the car lease scheme in their own name after the company/ employer pays the car lease deposit and then I cover from own salary monthly car lease repayments. Zero information provided to me on how much this monthly payment will cost me. I am worried this will eat a huge chunk out of my monthly salary.

This sort of sounds like a new salary sacrifice scheme being introduced by the employer, but they have let the cat out of the bag before even the employer knows all the details.  I am sure there will be others asking for clarification as well and, no doubt, by the end of the week there'll be a proper update from the employer.

This might clarify whether it is actually the car lease the employee is asked to sign or the agreement to pay while still an employee.

Maybe sit back and await further information from the employer before doing anything more.  Or ask for clarification, then sit back.  That might be better as it at least shows you have not ignored the employer.

Jaybee_16

If I understand the OP correctly, he signs a personal lease on a car, the employer pays the deposit and insurance for year one in the deposit, but what about insurance for year two and onwards?

If the employee leaves the job, the car returns to the employer even though it's a personal lease agreement? 

Doesn't make sense to me. 

scrappy_returns

If I sign the lease it's my motor (well leased but you get the idea) and my responsibility etc, if work sign it it's works motor and their responsibilty.
That's how I view it.