Salary Sacrifice Car - Questions

EJS90

I have a car through a scheme offered at work, where I give up a part of my salary in exchange for a fully insured and maintained vehicle for my personal and business use. I just have to put fuel in it.

I am about 2 years into the agreement, and I have just noticed that the car is not completely the spec that I ordered. It is missing a couple of options that I specced it with and I have gone back to my order sheet to check that this is correct.

In addition, I have noticed recently that the actual effect on my tan home pay has been considerably more than I was quoted.

I have gone back and reviewed my tax home pay each month before and after getting the car, and I am worse off each month than I was quoted.

I have looked over my agreement, and I am considering early termination of the agreement because of the issues.

Now they may well argue that it's my responsibility to check that the car had the spec I ordered before accepting delivery etc. but it's not something I would notice immediately. (The car I have has different leather on the seats, and I have now noticed that they are not ventilated as per the spec on the order form), but the fact it is costing more than they said it would, would I have a case for early termination without having to pay the fee for such?

ThumbRemote

Surely in the first instance you'd contact your employer (or whoever runs the scheme) to ask why it's more expensive, and whether you can get the extra money refunded.

sheramber

You need to speak to your employer as it is they who have the contract with the leasing company.

Did you get a personal quote of how much it would cost you or was it a general exampl?

HMRC dictate the amount of benefit a car incurs and there have been changes in recent years. The rates used for your quote may not be the current rates.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6667346/salary-sacrifice-car-questions

These discrepancies in the spec can't really be important if they took 2 years for you to notice.

Is the spec discrepancy really a proxy for something else as a reason you no longer wish to retain the car?

visidigi

Its worth noting that these are usually ALL estimates as individual benefits, taxation rules, pensions etc can have an impact. Presumably its majorly out and not just a bit?

Use this to compare what you expected versus what you are paying.

https://comcar.co.uk/taxtools/salarysacrifice/calculator/

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6667346/salary-sacrifice-car-questions

This isnt a consumer rights issue, your employer is the lessee of the vehicle, the fact they've given you the vehicle to use doesnt change the matter.

Missing items that take 2 years to identify cannot be significant, raise it with your employer by all means but dont expect significant or priority reaction.

As to the impact on salary… you'd really need to share the details of both what you thought the impacts were and what they really are. Some people forget about BIC when getting their first company car for example or dont factor in that BIC rates change, many went up 1% of the vehicle list price inc optional extras recently for example.

Okell

@EJS90 - as others have said this isn't a consumer rights issue, it's an employment issue between you and your employer and depends on the terms of the agreement you signed up to re the car.

You aren't a consumer here and the relationship between your employer and whoever supplies the car is probably(?) a business relationship not a consumer one.

Regarding the impact on your take home pay I'd suggest your first contact should be with your employer's payroll department and you ask them to explain why they are deducting more than you think they should. As others have said it's almost certainly a result of changes in taxation rules since the original quote for the car, but they ought to be able to confirm that.

Regarding whether the car is the right spec or not and whether that would entitle you to terminate, you need to take it up with whoever adninisters the scheme for your employer. (Although you are bit late after 2 years…)

The answers will depend on the terms of the agreement between you and your employer for the supply to you of the car