During the contract period
What if I my circumstances change after my car has been delivered?
If you decide to join the Scheme you will be committing to a 2, 3, or 4 year salary sacrifice agreement depending on what contract length you decide to go for.
Therefore, should you opt out early you would not be eligible to re-join the Scheme prior to the termination date of the original agreement and you may be liable to an early termination charge, unless your agreement is terminated for one of the following reasons:-
• accidental death; or
• loss of your driving licence on medical grounds.
Where an early termination charge would not apply, please note you may still be liable for any excess mileage or damage charges relating to your use of the car.
Should you terminate your salary sacrifice early for any other reason you may have to pay an early termination charge unless your employer exercises its discretion not to pass the costs on to you.
See the section entitled 'End of contract and early termination' for further information.
How do I manage the maintenance of my car?
General maintenance and breakdown services are included within your salary sacrifice, but it is your responsibility to ensure the car is maintained to manufacturer standards until you return it.
To arrange servicing, maintenance or repairs you should contact Vavoom on 0344 264 4177 or book online.
Can I keep my car during parental leave?
Yes. You can retain the car for up to 12 months whilst on parental leave without charge. Your salary sacrifice will be suspended when your total pay falls below the gross salary sacrifice and will be reinstated 12 months after the commencement of your parental leave, or when you return to work, if earlier. The salary sacrifice will then be applied until the end of your contract, or you take a further period of parental leave, if earlier.
If you return to work on reduced pay, for example because you return on a part-time basis, and are unable to meet the salary sacrifice, or you do not return to work, your participation in the Scheme will cease with immediate effect. You will be required to return the car to your employer, unless it offers you an alternative arrangement, or allows you to reach an agreement directly with the lender for you to retain the car.
See the section entitled 'End of contract and early termination' for further information about the charges that may arise if your car is returned early, including the circumstances in which your employer may exercise its discretion not to pass some or all of the charge on to you.
What happens if I need to take an extended period of sick leave or unpaid leave?
You may continue to take part in the Scheme as long as your total pay, including any occupational sick pay, remains sufficient to support your salary sacrifice, otherwise your participation in the Scheme will cease immediately. You will be required to return the car to your employer, unless it offers you an alternative arrangement, or allows you to reach an agreement directly with the lender for you to retain the car.
The section entitled 'End of contract and early termination' provides further information about early termination charges.
What happens if I leave employment?
You will be unable to continue to participate in the Scheme if you leave your employer’s employment for any reason. You would therefore have to return the car to your employer, unless it offers you an alternative arrangement, or allows you to reach an agreement directly with the lender for you to retain the car.
See the section entitled 'End of contract and early termination' for further information about the charges that may arise if your car is returned early.
What happens if changes in legislation mean that salary sacrifice schemes are no longer effective?
There is currently no indication from HMRC that salary sacrifice arrangements for ultra-low emission cars will be the subject of general prohibitive legislation in the near future.
Moreover, we know how company cars will be taxed until April 2028 so there is a fair degree of certainty regarding the tax implications of participating in the Scheme.
If the law or HMRC practice changes and it is no longer advantageous to operate the Scheme, your employer reserves the right to withdraw the Scheme. In this case no new cars will be delivered after the date of withdrawal of the Scheme, but existing contracts will be honoured providing it is still financially advantageous for you to continue to participate until the end of the lease, when the salary you will be paid will revert to your "Reference Salary", that is your salary before the salary sacrifice.
Please note that Scheme documentation will refer to your salary before the salary sacrifice as 'Reference Salary' but it may appear as 'Notional Salary' or something similar on your payslip.
What are my options if I'm disqualified from driving?
You should contact your employer who will confirm your disqualification to its insurer.
If your insurance cover cannot be maintained for any of your additional drivers your salary sacrifice agreement will be terminated. Please refer to the section entitled 'End of contract and early termination' for further information about early termination charges.
What happens if I receive a parking fine or a congestion charge notification?
You will be liable for any out of contract charges, such as parking fines, congestion charges, or other motoring costs. As the registered keeper of the car, any such charges incurred by Vavoom will be recharged to your employer. Per the terms of the Scheme your employer may then deduct these charges from your net pay the following month.
Do you have more information for me?
Absolutely. We have a full brochure on all ‘Frequently Asked Questions’ regarding Salary Sacrifice which is accessible here. Alternatively, you can call our Account Team on 0344 264 4177