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  • FIRST POST
    • Expression93
    • By Expression93 15th May 18, 7:20 PM
    • 7Posts
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    Expression93
    Company car possibility, currently got car on PCP
    • #1
    • 15th May 18, 7:20 PM
    Company car possibility, currently got car on PCP 15th May 18 at 7:20 PM
    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?
Page 1
    • DoaM
    • By DoaM 15th May 18, 7:53 PM
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    DoaM
    • #2
    • 15th May 18, 7:53 PM
    • #2
    • 15th May 18, 7:53 PM
    Could you not opt for a car allowance rather than an actual company car?
    Diary of a madman
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    • Expression93
    • By Expression93 15th May 18, 7:54 PM
    • 7 Posts
    • 1 Thanks
    Expression93
    • #3
    • 15th May 18, 7:54 PM
    • #3
    • 15th May 18, 7:54 PM
    Unfortunately that wouldn't really work... see below.

    Could you not opt for a car allowance rather than an actual company car?
    Originally posted by DoaM
    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).
    Originally posted by Expression93
    • tonyh66
    • By tonyh66 15th May 18, 8:10 PM
    • 1,273 Posts
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    tonyh66
    • #4
    • 15th May 18, 8:10 PM
    • #4
    • 15th May 18, 8:10 PM
    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.
    • Jonesya
    • By Jonesya 15th May 18, 8:16 PM
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    Jonesya
    • #5
    • 15th May 18, 8:16 PM
    • #5
    • 15th May 18, 8:16 PM
    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.
    • Expression93
    • By Expression93 15th May 18, 8:20 PM
    • 7 Posts
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    Expression93
    • #6
    • 15th May 18, 8:20 PM
    • #6
    • 15th May 18, 8:20 PM
    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.
    Originally posted by tonyh66
    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.

    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.
    Originally posted by Jonesya
    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.
    • Nasqueron
    • By Nasqueron 15th May 18, 11:20 PM
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    Nasqueron
    • #7
    • 15th May 18, 11:20 PM
    • #7
    • 15th May 18, 11:20 PM
    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
    • Expression93
    • By Expression93 19th May 18, 4:09 PM
    • 7 Posts
    • 1 Thanks
    Expression93
    • #8
    • 19th May 18, 4:09 PM
    • #8
    • 19th May 18, 4:09 PM
    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
    Originally posted by Nasqueron
    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.

    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?

    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.
    • wgl2014
    • By wgl2014 19th May 18, 4:27 PM
    • 924 Posts
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    wgl2014
    • #9
    • 19th May 18, 4:27 PM
    • #9
    • 19th May 18, 4:27 PM
    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......
    • molerat
    • By molerat 19th May 18, 5:30 PM
    • 19,578 Posts
    • 13,780 Thanks
    molerat
    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.
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    • Expression93
    • By Expression93 20th May 18, 8:48 PM
    • 7 Posts
    • 1 Thanks
    Expression93
    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......
    Originally posted by wgl2014
    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.

    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.

    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.
    Originally posted by molerat
    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.
    • alan_d
    • By alan_d 21st May 18, 11:22 AM
    • 94 Posts
    • 72 Thanks
    alan_d
    I don't think anyone has mentioned the company car tax.
    By the time you factor this in, it's likely you'd be better off taking a car allowance and taking the hit on extra miles over your PCP mileage allowance.
    • molerat
    • By molerat 21st May 18, 2:30 PM
    • 19,578 Posts
    • 13,780 Thanks
    molerat
    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.
    Originally posted by Expression93
    The settlement and VT figures are completely different. VT is to hand the car back, you can't sell it. Settlement is to own and then sell the car.
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    • Expression93
    • By Expression93 21st May 18, 8:31 PM
    • 7 Posts
    • 1 Thanks
    Expression93
    I don't think anyone has mentioned the company car tax.
    By the time you factor this in, it's likely you'd be better off taking a car allowance and taking the hit on extra miles over your PCP mileage allowance.
    Originally posted by alan_d
    Admittedly not something I've factored in, but as I understand I could not really add this without knowing value of car I (could) get.
    The settlement and VT figures are completely different. VT is to hand the car back, you can't sell it. Settlement is to own and then sell the car.
    Originally posted by molerat
    Sorry, somehow misread that. VT is about 8.5k minus current payments so approx 5.5k. A total settlement I think is around 13k?
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