Company Car on Resignation ADVICE!!

Bruce18

Hi all, 

I've recently handed my notice in at my job where I have a company car. I only got the car in November but have had loads of issues with it, its spent about 45 days in the garage. It's had a new gearbox and heating/cooling system. It's been a nightmare. Anyway, it's been fixed since last week. I pay an uplift payment to have a 'better' car of £200 a month, the lease is for 3 years. 

I handed my notice in this week and they have sent me an email saying that I will need to pay the remaining uplift payments on the car, which total over £6,000. I do not have this kind of money and I feel like I'm being held ransom in this job, what can I do? Do I have any rights here, it seems insane that this can be acceptable. 

Any advice or help much appreciated. 

MattMattMattUK

Bruce18 said:

Hi all, 

I've recently handed my notice in at my job where I have a company car. I only got the car in November but have had loads of issues with it, its spent about 45 days in the garage. It's had a new gearbox and heating/cooling system. It's been a nightmare. Anyway, it's been fixed since last week. I pay an uplift payment to have a 'better' car of £200 a month, the lease is for 3 years. 

I handed my notice in this week and they have sent me an email saying that I will need to pay the remaining uplift payments on the car, which total over £6,000. I do not have this kind of money and I feel like I'm being held ransom in this job, what can I do? Do I have any rights here, it seems insane that this can be acceptable. 

Any advice or help much appreciated. 

You signed the contract for the more premium car and that will have included information about what happens with the uplift payments should you leave their employment. Normal practice is that these are waived if you are made redundant, but you are required to pay the remainder of the lease if you leave of your own accord. You will need to read what you signed at the time, but this is not about "rights", you signed up to something and agreed to pay it, you do not get to walk away commitment free. 

Marcon

Bruce18 said:

Hi all, 

I've recently handed my notice in at my job where I have a company car. I only got the car in November but have had loads of issues with it, its spent about 45 days in the garage. It's had a new gearbox and heating/cooling system. It's been a nightmare. Anyway, it's been fixed since last week. I pay an uplift payment to have a 'better' car of £200 a month, the lease is for 3 years. 

I handed my notice in this week and they have sent me an email saying that I will need to pay the remaining uplift payments on the car, which total over £6,000. I do not have this kind of money and I feel like I'm being held ransom in this job, what can I do? Do I have any rights here, it seems insane that this can be acceptable. 

Any advice or help much appreciated. 

I'm afraid the problems with the car don't release you from the obligations to which you've signed up. You aren't being 'held to ransom' - signing up to a 'better' car, and resigning from your job, are both of your own choice.

That's all pretty cold comfort. Worth asking your employer (very, very nicely, since you don't have right on your side...) if another employee might be interesting in 'taking over' your company vehicle once you leave.

DullGreyGuy

Why should the employer be lumped with £6,000 of higher lease payments because you wanted a fancier car than your level in the company warranted? Some may say you're lucky its just the uplift payments your on the hook for.

When thinking about leaving you should first check what you've agreed to pay back before doing so and probably not take a long term commitment just before it. Company Car, Bonuses, Share Saves are all tools employers have to increase tenure of employees. 

Smithcom

Bruce18 said:

Hi all, 

I've recently handed my notice in at my job where I have a company car. I only got the car in November but have had loads of issues with it, its spent about 45 days in the garage. It's had a new gearbox and heating/cooling system. It's been a nightmare. Anyway, it's been fixed since last week. I pay an uplift payment to have a 'better' car of £200 a month, the lease is for 3 years. 

I handed my notice in this week and they have sent me an email saying that I will need to pay the remaining uplift payments on the car, which total over £6,000. I do not have this kind of money and I feel like I'm being held ransom in this job, what can I do? Do I have any rights here, it seems insane that this can be acceptable. 

Any advice or help much appreciated. 

Hi Bruce

The key factor here is probably going to be what, if anything, you signed up to.

Did you agree to the balance of the uplift should you leave, when accepting the car?     If so, you may well be contractually liable.  That being the case, you may need to get your cheque book out!!

There's a really good suggestion above about seeing if a colleague would agree to take over the uplift.

You could try and negotiate or appeal to their better nature, but you may not be doing so from a position of strength.

Hope you find a satisfactory resolution

SC