Salary sacrifice termination fee

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Shambler
Shambler Posts: 767 Forumite
in Motoring
Hi all, I'm in a salary sacrifice car scheme and I'm resigning from work to go to another job (have been at threat of redundancy but have jumped ship before that happens) so I have to make a decision what to do with the vehicle.

The policy clearly says I have 3 options,
A) pay a termination fee of 3 months payments and give the car back
B) buy the car
C) move the car from salary sacrifice to a PCP personal hire contract.

I asked about option C and was told I still have to pay the termination fee.

I said that the policy does not say I have to pay a termination fee, their reply, well it doesn't say you don't have to either!

Would prefer option C as it is the easiest but I don't want to pay a termination fee that the contract doesn't mention.

Initially they said option C didn't even exist and they emailed me a contract which was obviously years old and not the current one.

Are they in breach of contract and if so what can I do about it?

Comments

  • smuk
    smuk Posts: 7 Forumite
    Options
    The first two are fairly standard options for these circumstances, but it seems really odd to offer C as an option if it essentially mounts up to the same as option A, but with an extended lease after?

    Is option C outlined in your current contract (not the old one they emailed you)? If so and there's no mention of a termination fee for that option then yes, they might be in breach of contract I think.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    First Anniversary Name Dropper First Post
    Options
    smuk wrote: »
    ...but it seems really odd to offer C as an option if it essentially mounts up to the same as option A, but with an extended lease after?
    C and A aren't "pretty much the same thing"

    A - pay one-off 3mo, give car back
    C - keep car for remainder of original term, as personal PCP
  • Herzlos
    Herzlos Posts: 14,688 Forumite
    First Anniversary Name Dropper First Post
    Options
    C sounds like (to them) pay a one-ff 3mo, continue as a personal PCP.


    How much is the car worth? Sounds like the cheapest option might be to take out a loan to buy the car (because at least you keep the car and aren't paying a 3x month penalty)
  • smuk
    smuk Posts: 7 Forumite
    Options
    AdrianC wrote: »
    C and A aren't "pretty much the same thing"

    A - pay one-off 3mo, give car back
    C - keep car for remainder of original term, as personal PCP

    Sorry, I just meant OP is capable of going and taking out their own PCP deal should they want to which might be more (or less) favourable. Seems odd to me to pay a one off termination fee but continue the same contract - wasn't sure what the incentive is for the customer to pay the fee when in all likelihood they may well go find a cheaper lease deal elsewhere. But I guess it's a lack of hassle?
  • Shambler
    Shambler Posts: 767 Forumite
    Options
    Yes, option C is outlined in the latest (2017) contract and I took out the lease in 2018. They emailed an old contract and bare in mind this came from someone once it had been escalated up the chain of command twice.

    Car is worth around £15K and I wouldn't be really interested in taking out a loan to buy it.

    I'd much rather take the easy option of moving it to PCP until the end of the contract.

    If they were in breach of contract could I give the car back without paying a termination fee and walk away?
  • cranford
    cranford Posts: 797 Forumite
    Name Dropper First Post First Anniversary
    Options
    Is there anything stopping them from deducting the 3 payments from your final pay settlement when you leave if your don't agree to pay?
    In which case you would have to fight to get it back.
  • marlot
    marlot Posts: 4,935 Forumite
    Name Dropper First Anniversary First Post
    Options
    Shambler wrote: »
    ...
    Are they in breach of contract and if so what can I do about it?
    Nobody is yet in breach.
  • Shambler
    Shambler Posts: 767 Forumite
    Options
    I don't think I can stop them taking the termination fee, it does come straight out of my wages.

    I can see me telling them that because they are not allowing me option C I shall be giving the car back and will seek recompense through the small claims court for any termination fee taken.

    At what point do they become in breach of contract?
  • The_Rainmaker
    The_Rainmaker Posts: 1,483 Forumite
    First Post Name Dropper Photogenic
    Options
    Herzlos wrote: »
    C sounds like (to them) pay a one-ff 3mo, continue as a personal PCP.

    This would be the option I would be looking at, the only problem is the finance company's idea of the value of the car can be eye wateringly high.
  • Shambler
    Shambler Posts: 767 Forumite
    Options
    Quick update.

    After many weeks of waiting for them to work out what they could do they ended up saying they could not move it to PCP.

    I decided to get a loan and buy the car since the price they wanted was reasonable.
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