An aquaintance of mine has just been offered a well paid new job part of which is a car allowance. However due to a v poor credit history he is concerned that convential providers will not be prepared to deal with him.
He obviously does not want to go back to his new employer saying he cant get credit so can they provide him with a car (which will be required for extensive travel). I am also concerned that if the job doesnt work out he will be left with an expensive car he cant afford.
Can anybody recommend a scheme which might suit him ?
tia P
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Is he compelled to provide a car of a certain value/age in order to qualify for the allowance?
I'd be surprised if there were any attached conditions, so he could either buy a really nice looking banger, and hire a quality car by the day when he needs to impress clients (does he have to?), trading up as fast as possible, or if he has a mortgage, could he extend that and get a car with the proceeds?
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"I'd be surprised if there were any attached conditions"
Would not suprise me if there were. In fact Most companies attach conditions to Car allowance (if its job required rather than a "perk"). Things like style of car, (no westfields or kit cars for example, 4 doors etc) age of car, etc etc.
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TourVanMan TM < Ex RF >
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Yup our Co. car allowance is restricted to cars under 5 years old.
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Have a friend who has the same problem.He basically hires a car. Pays them monthly by credit card. Credit card does have a high interest rate but he makes sures he pays off every month. Hire company call him every 3 months to give him a new car and he is also building up his credit rating again.
Hope this helps.
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bw, thanks I've already had the same thought and suggested the same. He has some room for negotiation so I've recommended he goes back requesting a Co supplied vehicle, especially as he will be doing very high mileage.
Do you know if your friend has researched the best deals/Hire co for this type of arrangement ?
P
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He did not do a lot of research. He always been a VW fan so went into a VW main dealer in Glasgow. Went to the hire dept and said I have this much to spend per month what can you give me. He has been doing this for about a year now and now that he has been a good customer and looks after the cars he gets. They seem to be giving him higher spec cars every 3 months.
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Interesting I wouldnt have thought of the dealer network.
Thanks
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Yup our Co. car allowance is restricted to cars under 5 years old.
Likewise mine.
I receive a company car of my choice up to a monthly rental ceiling, or (as an incentive to reduce admin and other costs associated with running company cars) 125% of the equivalent monthly rental if I choose to opt out - as I have done. The only restrictions are that the car must be less than five years old, four or more doors, no SUVs, no soft tops (though I don't know one that has four doors, but anyway), and no coupes (so thankfully no hideous new Merc four door coops)
In practice though, the only rule enforced is the five year one, but then it tends to self-police anyway as many employees are in the habit of wanting a new car after three years (and in fact most have three year PCPs and similar credit arrangements). Unless the twins on the way dictate otherwise, I intend to keep the V70 we purchased new in 2003 for another two years, at which point I will give it to the missus, sell her (by then) 13 yeard old 306 Sedan, and with my 125% allowance purchase a nearly new car for business usage. The intention is to get as near as we can (with two cars that we both actually enjoy and want to own) to running two cars on one allowance.
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OK, he needs a car that's five years old or less. What if he were to buy an older model of a car that was still current (and not facelifted) in 2001? Pop a cheap private plate on it, and no-one is any the wiser.
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OK, he needs a car that's five years old or less. What if he were to buy an older model of a car that was still current (and not facelifted) in 2001? Pop a cheap private plate on it, and no-one is any the wiser.
This was done a few times in our company until some chav decided that he wanted XXV 1P as a personal plate, positioned XX V1P with XX as his initials and in an illegal font (the 1 appeared as I). Not that I have ever wanted a personal plate but this did it for everyone and they are now banned.
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SjB - your company has banned personal plates? How does that work and can they do this, legally? Perhaps they can if they are 'company' cars but if it is yours on a lease scheme the plate is your business SFAIK
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SjB - your company has banned personal plates? How does that work and can they do this, legally? Perhaps they can if they are 'company' cars but if it is yours on a lease scheme the plate is your business SFAIK
Legally when pushed perhaps they can't, but the one case that triggered it excepted, thankfully people have been sensible enough to recognise the spirit of rules that not only give them an extremely generous car allowance, but a damn good living. Bite the hand that feeds them and send the wrong message to customers and all that can change very quickly.
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Twins SjB? Early forties too? Way to go, man! Nothing wrong with your mojo then.
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Thanks, BBD! :-)
We'll have to have that beer in Warsaw some time.
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>>and in fact most have three year PCPs and similarcredit arrangements).
He should certainly be wary of PCP's etc if he thinks the job might not last - the penalties, especially early on, are horrible.
If he's going to get a new car then he could try Personal Contract Hire, and make sure he gets redundancy/resignation insurance, although he still may have credit worthiness problems.
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Some companies have very strict rules about personal cars.
It's a "helfnsafety" issue as the car is deemed to be a place of work.
The company would be well within its rights to require <5 years old (say), driver's airbag, ABS, properly serviced etc.
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Thanks folks useful discussion - was able to guide him and to his credit he's agreed a company supplied vehicle based upon the demands of the job, high mileage and personal cost - a far better solution all round.
P
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