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Ben Jones
Ben Jones, UK Lawyer
Category: Law
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I am working as a community nurse nhs and I

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I am working as a community nurse for the nhs and I have a car through the salary sacrifice scheme. I leave my employment with the Trust to work for another trust 20miles away. When I agreed to the lease car I was told that there would be no problem transferring the car if I changed jobs as long as I stayed within the NHS.
When I accepted the job offer for my new post I informed the car leasing company and I was told I would not be able to transfer the car to that particular trust and I would be liable for an early termination fee.
I have had 3 quotes since informing them that I would be terminating my car leasing contract early. The first was for £350 +vat not to exceed 3800 miles and to hand the car back 30/7/15, my second quote was to hand the car back 30/8/15 £407+ VAT not exceed 3000 miles. I queried the second quote because the mileage had dropped and I had already done 3500 miles as I was contracted to 10000pa and I will have had the car 5.5 months. They asked me to estimate what my mileage will be when I hand the car back 30/08/15 which I informed them will 3800 the same as they stated in the july quote. They have since given me a revised quote of £820+ vat mileage not to exceed 3800.
I would like to know what my legal rights are for paying for this extra mileage when I have not exceeded my contracted miles? I expect to pay some fee for terminating my contract early but I don't understand how each quote has differed by so much each time in the space of 4 weeks.
They also stated that they would not offer payment plan to pay off the fee. In which case they would take it straight from my salary leaving me with no money for the next month to pay bills, fuel, nursery fees etc.
I would very grateful if you could provide me with some legal advice as to what my rights might be.
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today. What is your specific question about this ?
Customer: replied 2 years ago.

What I want to know is can they charge me for the extra mileage even though I have not exceeded my contracted 10000 miles?

and can they deduct the full payment from my salary even if it leaves me with no wage?


Was an early termination fee agreed when you took out the lease or is it in the contract? Also does your contract state that the employer could make deductions in relation to this from your pay?
Customer: replied 2 years ago.
No set fee was agreed but the contract states "the amount will vary depending on the car chosen and this is linked to depreciation values"
It also states that this fee will be deducted from the employees salary.
But can they still charge me for mileage that does not exceed my contracted amount?
And can I not request to pay any large sums monthly? if it means I will not be able to afford to live?
The charges they will be making would not be for the mileage which does not go over your contracted amount but for the fact that you are ending the lease early. Doing so would mean that the leasing company incurs losses as you would not be paying them the fees any loner hence these fees are there to compensate them for such losses. Ideally the amount should have been agreed in advance but if that is not the case then they can only charge whatever is considered a fair and reasonable amount in the circumstances and something which serves to genuinely compensate them for the losses they would have suffered. So they cannot penalise you by charging you exorbitant fees and in some ways make a profit out of this. The issue is that what is fair and reasonable would vary from case to case and would depend on many factors and only a court can decide what such a fair amount it. So it would be best to come to some sort of an agreement over this before you proceed with it.
As to deducting the amount from your pay, that appears to be allowed under your contract and as such it would be legal for them to do. Generally a deduction cannot take your pay below the National Minimum Wage but this is allowed in the event you do something and the deduction is allowed under contract, for example as in this case where you terminate the lease and the deduction is allowed under contract.
I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
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