Question about company car contract

[Kimmi]

Hello
I have recently been given a lovely brand new mini as a company car. It is on a 3 year lease and is costing the company £190pm. My employer wants me to sign an agreement that says that if I was to leave before the 3 years are up that I would pay half of the monthly payment for however many months are left of the 3 years lease. I havnt any plans to leave this job in the foreseeable future but I really don't want to sign that agreement!!
Does anyone have any advice about this and how can I reply to my employer?
many thanks
Kimmi

[Amethyst]

Re: Question about company car contract

Would you keep the car ?

[Kimmi]

Re: Question about company car contract

Hi Amethyst no I wouldn't keep the car.
My replacement would not necessarily want to take on the company car and would prefer to use their own car and receive a car allowance instead so I can see why they might be worried that they could be left with a car that they are paying for but is not being used.

[R0b]

Re: Question about company car contract

If they've already taken on the lease, then they can't force you to agree to pay the half the monthly instalments for the remaining 3 years, and it would seem unfair that you have to cover any remaining balance even after you leave. That being said, if you've been there less than two years they could make things difficult for you in terms of threatening to get rid of you or other reasons.

They really should have got you to sign something prior to them getting the lease. As the contract is between your employer and the lease company, has nothing to do with you in terms of liability - unless there is some kind of company car policy that has been incorporated into your employment contract

[Kimmi]

Re: Question about company car contract

Thank you Rob.
I didn't think that they could insist that I agree to that part.
I don't think that my job will be at risk if I say no as I am the best sales rep that they have ever had !
I just wish that I could come up with an idea that would make my employer feel happy with his side of things.

[R0b]

Re: Question about company car contract

Do check your employment contract to see if it mentions anything in relation to a company car or policy, as anything in there may incorporate terms that requires you to agree to what the employer is trying to make you do if you accepted a company car.

[ULA]

Re: Question about company car contract

The company should have a car policy either incorporated into your terms and conditions of employment or as a separate policy that should have been provided to you. As [MENTION=71570]R0b[/MENTION] says you should have a look at this and see what it says.

I have to say that in my experience I have not heard of someone being asked to pay the monthly lease costs should they leave the company prior to the end of the lease period. A car is provided either as a means to carry out the role for which a person is employed or as a benefit of being at a certain level of seniority. I presume as a sales person the reason you have been given a car is the latter in which case if you left it would be available for your replacement who in doing the same job would require a vehicle.

Either way if it on a lease agreement which is between the company and the car provider and you should not be asked to pay half the monthly cost if you leave.