Advice regarding car salary sacrifice scheme

davidwez · Post by **davidwez** » 14 Jun 2018, 15:54

Hello. Wondered if anyone had any knowledge regarding the car salary sacrifice scheme..more specifically getting out of it. Since taking the car on my rent payments have gone from £500 a month when i could afford it to £950 a month. I am now struggling to make ends meet. Any ideas? :/

rottathehutlet · Post by **rottathehutlet** » 14 Jun 2018, 16:02

I asked them about getting out early and they told me that I would have to pay a lump sum of 40% of the payments that I would have paid if I had stayed in contract. I would also have to pay £250 + vat exit fee and £200 + vat collection fee as well as a mileage fee to wherever the car is taken. Needless to say, I didn't take them up on it!

Justanotherstar · Post by **Justanotherstar** » 14 Jun 2018, 19:19

Write it off...£250 insurance excess then bye bye car.

Rumple · Post by **Rumple** » 14 Jun 2018, 19:31

Or move into your car and save £950 p/c/m

Justanotherstar · Post by **Justanotherstar** » 14 Jun 2018, 19:57

Rumple wrote:Or move into your car and save £950 p/c/m

I've seriously thought about this

davidwez · Post by **davidwez** » 15 Jun 2018, 14:29

Lol to all above :)

Dorset Plodder · Post by **Dorset Plodder** » 16 Jun 2018, 13:05

Although I have no experience of this scheme, I wouldn't want to trust Royal Mail with anything too serious. They can't even get your pay right for Christ's sake. I wouldn't trust them to sort something like this.

My advice would be to try and source a low interest loan, pay of the car sharks and then repay the loan ASAP. Unfortunately this is the sort of thing that really needs looking at BEFORE you sign in the contact.... hindsight and all that. My Dickhead son bought a car, without telling us, and got himself saddled with a 42% APR!

So he's basically repaying £8000 back for a £4000 car!

Justanotherstar · Post by **Justanotherstar** » 16 Jun 2018, 15:07

Dorset Plodder wrote:Although I have no experience of this scheme, I wouldn't want to trust Royal Mail with anything too serious. They can't even get your pay right for Christ's sake. I wouldn't trust them to sort something like this.

My advice would be to try and source a low interest loan, pay of the car sharks and then repay the loan ASAP. Unfortunately this is the sort of thing that really needs looking at BEFORE you sign in the contact.... hindsight and all that. My Dickhead son bought a car, without telling us, and got himself saddled with a 42% APR! So he's basically repaying £8000 back for a £4000 car!

I would laugh but when I was young and thick as 2 planks I also got a car with a ridiculous rate of interest, think it was around 27%, I listened to the salesman's spiel about the apr being around 15%...what he didn't tell me is that was the estimation and I signed without realising it had gone up so much...you live and learn lol! I quickly got a loan from the bank and paid off the creation finance loan dropping my APR to around 7% (if you pay off a loan early they aren't allowed to charge interest so I would tell him to get a settlement figure and down the bank asap!)

maisymoo04 · Post by **maisymoo04** » 16 Jun 2018, 17:06

davidwez wrote:Hello. Wondered if anyone had any knowledge regarding the car salary sacrifice scheme..more specifically getting out of it. Since taking the car on my rent payments have gone from £500 a month when i could afford it to £950 a month. I am now struggling to make ends meet. Any ideas? :/

dave that's some jump in rent isn't it didn't you no about this coming ?

seeker019 · Post by **seeker019** » 18 Jun 2018, 19:09

I was going to get a mobile phone with this scheme:
Samsung S9 which was £9.38 A WEEK!!!!! or around £900+ over 2 years no simm card/contract
Carphone warehouse same phone £700 ee contract

AVOID!!!!

MAILMAN84 · Post by **MAILMAN84** » 21 Jun 2018, 18:12

I liked it initially till I found out if i get sacked or lose my job for any reason, i'm gonna get crucified. That shouldn#t be right....

Cowdenpostie · Post by **Cowdenpostie** » 23 Jun 2018, 17:43

How are they able to hike up your payments that much when you agreed to 500 a month???

Tman · Post by **Tman** » 23 Jun 2018, 19:16

Justanotherstar wrote:
Dorset Plodder wrote:Although I have no experience of this scheme, I wouldn't want to trust Royal Mail with anything too serious. They can't even get your pay right (if you pay off a loan early they aren't allowed to charge interest so I would tell him to get a settlement figure and down the bank asap!)

Not always the case with loans (not mortgages). The total interest you would have paid over the course of the loan period is calculated and added to the total, so if you decide to pay it off early you'll still have to pay the interest due for the remainder of the loan period as part of the redemption figure.

davidwez · Post by **davidwez** » 03 Jul 2018, 16:52

Moved from my parents house (after getting a divorce) into a new house with my current partner..hindsight and all that lol :/ hence the rise in rent.