I have a part company car and i have a question?

Question

My employer part funded the car by £12,000 and i put in £9,500. They put the car in their name without my consent after saying it would remain in mine after 8 months when i left the registration for with them in trust. Now i am leaving because of this as i stood to lose money on depreciation as i work in field sales. They told me originally it would remain in my name and then I could sell it and do what i want after 3 years. Now they want to give me back £7,400 for the car for my portion. The car is only 8 months old and i only drove it for company business. It is now back in my name. Do you think i am right ot hold off and ask for all my money. I feel i am paying for their company car. I only ever used it for business use. I am leaving the company now as i have a new job with a fully funded comapny car.

Answer 1

Probably not the answer you want but ...Is the HMRC (Tax office) aware of this arrangement?

Answer 2

You originally agreed to part fund. There is huge depreciation in the first year. Their offer is actually fair in the circumstances.

Incidentally part funded company cars are not often seen, usually this is an arrangement when the driver wants a car that is of a higher grade than is normally supplied for the job and is willing to pay towards the upgrade.

Answer 3

ive never heard of a part funded company car doesent sound very good on your part i certainly wouldent put my money towards a company vehicle id want all my money back the vehicle was used for business purposes not private and i bet youve run some miles up doing field sales . the gaffers at our company recieve a car allowance they can source their own vehicle and the allowance pays it off as long as you stay within budget and when the vehicle is to be replaced they have a buy back option which is very reasonable on average 2500 for a 3-4 year old car isnt bad and they get another new car for work

Answer 4

Here's the question.  If you sold the car today, could you get more that £16,750 for it.   My guess is no as this represents approximately 23% depreciation, which sounds about right for a 8-month old car.    If you can prove to the company that the market value for the car is more than that, then you might be able to hold out for more....but it's not going to be much more, I believe.   I'd take the money and next time, wouldn't become partners with a company to buy a car.