Approved / Funding Corporation

TimeToStandUp · 17th May 2007, 11:13

I bought a car in October with Approved / Funding corporation, I have paid every payment.

However I have got promotion at work and will get a company car. But the problem now means I have a car which wont be used, but because of the high interest rate I wont get no where near enough if I sell it.

Any advise, can I just give it back to them and cancell the agreement ?

patdavies · 17th May 2007, 14:42

Quote:

Originally Posted by TimeToStandUp

However I have got promotion at work and will get a company car. But the problem now means I have a car which wont be used, but because of the high interest rate I wont get no where near enough if I sell it.

Do you have to take the company car? Many companies have an alternative car allowance for people entitled to a company car, but want to use their own.

Your salary will take a massive hit from income tax for a company car anyway.

TimeToStandUp · 17th May 2007, 15:31

My company is a blue chip one, and they do a different scheme so it does not effect your tax. Talking to others who have been on the car scheme for several years they love it. they get to choose what car they want, and can contribute extra to get a better car. (the amount of BMW in the car park is bizarre)

I calculated that I would be around £300 a month better off, as I would get a fuel card which I would contribute £70 a month too, all the rest the company pays for, I wont have no tax or insurance (again company pays) and it be fully maintained.

calvi36 · 18th May 2007, 00:48

if you give me the exact make and model of car the company are offering I will work out your P11D and benefit in Kind for fuel etc. That way you can compare if it is actually more cost effective to keep your own car. One point tho, just make sure you insure your car for business use if you choose to go down that route.

patdavies · 18th May 2007, 15:33

Quote:

Originally Posted by TimeToStandUp

My company is a blue chip one, and they do a different scheme so it does not effect your tax. Talking to others who have been on the car scheme for several years they love it. they get to choose what car they want, and can contribute extra to get a better car. (the amount of BMW in the car park is bizarre)

I calculated that I would be around £300 a month better off, as I would get a fuel card which I would contribute £70 a month too, all the rest the company pays for, I wont have no tax or insurance (again company pays) and it be fully maintained.

This sounds like you are getting a nominal car allowance that is clawed back to pay for a personal lease plan for which your company has arranged favourable terms. The 'extra' contribution that you can make will effectively be the difference between the 'car allowance' lease cost and the extra true cost for the vehicle you choose.

However, unless you can demonstrate to the satisfaction of the tax man that the £70/month pays for or exceeds the cost of all your personal mileage fuel (including commuting) then you will be liable to pay income tax on the value of the excess private fuel. You will need to keep a meticulous mileage log. Similarly, you are liable to tax on the insurance if the employer pays this for your personal use also.

You are not liable for tax on the insurance if it is arranged to be bundled into the lease cost (but this is rare). You are not liable for tax on the VED as this will be bundled into the lease together with maintenance.

Another thing that you need to look out for is since this is PLP, what happens if you leave the company for any reason during the life of the lease - there is insurance available for this, but it wouldn't cover retirement on grounds of age for example. You also need to check that there is GAP insurance in case the car is written-off for any reason. this will cover the difference between the insurance pay out and the leasing company's charge.

Lastly, as the company is providing the motor insurance, it will in all probability be a company-wide fleet policy. You need to make sure that the excesses are within you means (it may be £500 or more) if you have a claim.

Don't be seduced by the choice of a brand new car - you need to look very carefully at all the risks and costs

TimeToStandUp · 14th July 2007, 15:16

Hi all, I really need help now....

I basically cant afford the car, I have sent them a letter to Voluntary Terminate the agreement. But they are saying I cant because its not a HP agreement, and that they want £14,000 paid up....

The car is only worth around £3,500, and I have had it for 9 months and have been paying £255 per month.

Please really need help...

There advise was not to pay, they will send letters then repossess the car and then still chase me for £14,000 plus costs.

calvi36 · 14th July 2007, 23:23

I am at a bit of a loss here regarding your last post, can you clarify please TIME?

TimeToStandUp · 15th July 2007, 14:09

Basically, I cant afford to keep the car, I want to return it, but they are saying that they will repossess it and I got to pay them £14,000 for the car....

I tried the Volunatary Termination notice, and felt I would be liable for 50% but they are saying that its not a HP agreement so the VT does not mean nothing.

TimeToStandUp · 17th July 2007, 15:36

Hi they sent me a default letter today, saying pay up £7,500.. So why then if they reposses I got to pay £14,000

TimeToStandUp · 4th November 2007, 16:04

Hi guys, back on with this now,

They repossed the car in September, and yesterday sent me a Final Demand letter saying payup £13,000 are we take you to court.

I had no correspondance from them since they took the car, so I had a car with the Value of £5000 reposessed, and I still owe them double the cost....

Any advice...

chimurenga · 15th November 2007, 15:13

i'm in the exact same siruation as you and i'm getting a car from work which works out a lot cheaper, reading through all the replies you got, none were really answering your query...i also want to know what to do about welcome finance, i want to give their car back but i dont want to owe 13000 quid?? what to do???!!!???

TimeToStandUp · 3rd June 2008, 18:32

Hi all,

Well to update you all on the situation, and its not good, a lot is down to me where I was working away and didnt keep my eye on the ball so to speak.

Any way I was referred to a solicitors who felt I had a really good chance, but I was declined for legal aid, mainly because I did too much overtime, and I couldnt afford the potential 7K legal fees.

The next thing is that I received a letter from the courts stating it was ruled in there favour, and my car that was purchased for 5k had now been awarded to them for 15k !!!!. They repossed the car and sold it on for £1.5k.

Now I just received a letter from the land registry, stating the Funding have put in an charging order, and I just received a letter from Funding about a court date to award them that they can put a charge on my house (30th June)

Can I ask that the court be transferred to my distric and argue my case. Or is it too late.

drob · 6th June 2008, 13:02

Who are the Solicitors you used?

TimeToStandUp · 8th June 2008, 16:44

It was Stephenson's, who did indentify the BOS was not correct, but unless you can afford to employ them its not much use, and your caught in a cycle, which I think made me put my head in the sand from frustration. CAB where no help they couldnt give a toss, and said I should I read the BOS carefully before signing it..

So everyone thats going to purchase a car from Approved read this and be warned. They repossed the car, sold it on for just 1.5K and now I having a charge against my home for 15k.

Legal robbery...

drob · 8th June 2008, 17:19

Did Stephensons mot offer no win no fee if they they felt you had a good chance?

TimeToStandUp · 8th June 2008, 17:24

Nope, on the Legal aid form they felt they had a 90% chance of winning, but when I was rejected, and I mean it was literally just because last year I did a lot of OT.

But after that it was a case that it would cost around 7k to fight it, to which as much as I want to fight it, I cant afford to and cant raise those funds, if I could I wouldnt of had to go to a company like Approved in the first place.

drob · 8th June 2008, 19:55

Did they send you the forms to sign before you where rejected for legal aid?

TimeToStandUp · 8th June 2008, 19:59

yes, I signed all of them, and thats the form where they had a paragraph about the percentage of chances to win.

Hobbie · 8th June 2008, 20:18

If you now have a company vehicle, and only contributing £70 to the fuel card account each month, were you not making enough savings to be able to a

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