Company car possibility, currently got car on PCP
Options
Expression93
Posts: 7 Forumite
in Motoring
Apologies if this isn't the correct place to post this, but couldn't find anywhere else more suitable.
So I've been in early stage discussions with my new employer and they have said subject to review at 6 months I could get a company car (taking with a pinch of salt currently of course, but just want to pre-empt the situation for all outcomes). My current personal car is on PCP 4 years with approx 3 years left to run.
I have a very complex background situation which for obvious reasons I don't want to detail too much in public, but in brief when I got this deal I did carry over negative equity from a previous HP deal (though I did get discounts and incentive payments etc that offset some of this).
What options do I (or should I) have to exit this deal early if it should become necessary? Asking for a car allowance instead would not really be an option for me as I am on restricted mileage (6k per year, I'm already on about 8k with 2 months left to run for the first year. 9p/mile over limit charge).
The PCP deal is with GMAC aka Vauxhall Finance, they have advised me of the possibility of "Voluntary Termination" but this would of course require the return of the vehicle (which I am fine with) but also the payment of half the total finance amount circa £8.5k (any current payments I've made already would of course get offset against this, which in my case would leave about £5.5k balance). What else can I do?
So I've been in early stage discussions with my new employer and they have said subject to review at 6 months I could get a company car (taking with a pinch of salt currently of course, but just want to pre-empt the situation for all outcomes). My current personal car is on PCP 4 years with approx 3 years left to run.
I have a very complex background situation which for obvious reasons I don't want to detail too much in public, but in brief when I got this deal I did carry over negative equity from a previous HP deal (though I did get discounts and incentive payments etc that offset some of this).
What options do I (or should I) have to exit this deal early if it should become necessary? Asking for a car allowance instead would not really be an option for me as I am on restricted mileage (6k per year, I'm already on about 8k with 2 months left to run for the first year. 9p/mile over limit charge).
The PCP deal is with GMAC aka Vauxhall Finance, they have advised me of the possibility of "Voluntary Termination" but this would of course require the return of the vehicle (which I am fine with) but also the payment of half the total finance amount circa £8.5k (any current payments I've made already would of course get offset against this, which in my case would leave about £5.5k balance). What else can I do?
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Comments
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Could you not opt for a car allowance rather than an actual company car?0
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Unfortunately that wouldn't really work... see below.Could you not opt for a car allowance rather than an actual company car?Expression93 wrote: »Asking for a car allowance instead would not really be an option for me as I am on restricted mileage (6k per year, I'm already on about 8k with 2 months left to run for the first year. 9p/mile over limit charge).0
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no options really, pay the £5.5k to get rid or keep it. Can you use your company car for personal use? you might need a personal car.0
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How much more mileage will you be doing?
What's to stop you taking an allowance and paying some extra mileage charges - calculate the extra cost, it might be cheaper.0 -
Admittedly a slight assumption on this point, but based on custom and practice of two other people who currently have company cars who both use them for personal use I would think I'm safe to assume I would be able to also.no options really, pay the £5.5k to get rid or keep it. Can you use your company car for personal use? you might need a personal car.
Well, admittedly this would all hinge on what they would (potentially) pay... and how much for them it would cost to give an allowance versus give a company car. The mileage would be somewhat regular, and could be journeys to/from anywhere in the UK.How much more mileage will you be doing?
What's to stop you taking an allowance and paying some extra mileage charges - calculate the extra cost, it might be cheaper.0 -
Mileage over limit (and 6k was very low) is only an issue if you want to hand the car back at the end of PCP. If you don't want to be in a cycle of new car every 3-4 years and paying a fortune for a new plate then losing 1/3 of the value when you drive away, why not just buy the car at the end which means no worries about mileage0
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It's definitely not my intention to be keeping this car any longer than the length of the PCP contract, and certainly is the case I will not be paying the deferred balloon amount at the end either.Mileage over limit (and 6k was very low) is only an issue if you want to hand the car back at the end of PCP. If you don't want to be in a cycle of new car every 3-4 years and paying a fortune for a new plate then losing 1/3 of the value when you drive away, why not just buy the car at the end which means no worries about mileage
I am going to stick to new(er) cars, and likely financing them on each occasion, but with that being said I am going to ply for better deals each time I come to getting a new car. Perhaps a better path forward is to save up the amount and be in a position to walk into a dealer to buy it outright? :j
The mileage limit at the time I got the car worked fine, admittedly I did not future proof, but at the time I had no reason to believe I needed to. I did a round commuting journey of no more than about 3 miles working 5-6 days a week, and in summer months it was less as I walked or cycled. It's only since getting the car I moved onto another job and moved home, not things I foresaw doing at the time of buying the car.
It is looking likely I will go with voluntary termination and negotiate a deal to pay off the remainder of the balance at the time of termination assuming all goes to plan. I work out roughly that by the time of needing to do this, I will be at about £3.5k on the balance sheet.0 -
If you VT early you will pay a chunk of cash for the previlidge of not having the car!
Can you up the mileage on your current deal?
Ultimately write down the different options and costs and go from there......0 -
How much is the car worth on WBAC ? How much is the settlement figure ? Terminating before the half way point is usually a very expensive way out.0
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Yeah but at least it's a cheaper exit path than to either pay for a car I'm probably not going to use or to get a new car at higher cost that again I may end up not needing.If you VT early you will pay a chunk of cash for the previlidge of not having the car!
Can you up the mileage on your current deal?
Ultimately write down the different options and costs and go from there......
Sadly the mileage allowance cannot be changed, I have to just accept the requirement of paying a overage charge at the end of the deal.
Around £8 is the WBAC valuation, though I doubt they'd take it due to the attached finance. The settlement is as in the first post based on VT. It's about £8.5k minus any amount already paid (e.g. my monthly instalments), making the balance due at point of VT around £5.5k if I were to be terminating the deal today - which obviously I'm not going to.How much is the car worth on WBAC ? How much is the settlement figure ? Terminating before the half way point is usually a very expensive way out.0
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