I hoped that I would not have to spend money on doing that, but I think you're right. Thx for the replies.

Yes the make of car was up to me, but it had to be purchased through the company's selected provider, and financed through their selected provider. I couldn't just use my own (even though I already had one), as it was not a cash alternative scheme, and they wouldn't offer this because I did ask. In retrospect it was a really raw deal - but everyone else signed up for it too - we are talking hundreds of staff, so I didn't really have any way to argue.

Under the terms of the scheme, I had to enter into a personal HP agreement with their selected provider, and they paid me a monthly amount towards my HP payments - I think it was supposed to be more tax efficient. Anyway, I was less than a year into a 4 year HP contract when I was sacked. I was not paid any further contribution toward my car, and without a job had no way of paying the monthly HP cost, so I handed the car back under the terms of the scheme. They sold the car, and I am left owing a shortfall to the finance company. As the HP agreement is personal to me, I realise that it is my debt, but as I am still unemployed I am really worried about how the HP company might behave toward me. This is not an agreement I would have entered into unless the company policies had required it, and the company unfairly dismissed me - but I am still left in this terrible position. I agreed a final settlement with my company and they offered £1,000 toward any shortfall which I accepted because i thought that it would be enough - but the shortfall is very nearly £4,000. How do HP companies behave in these circumstances - are they likely to agree some sort of payment plan, or just take me right to court? I'm panicked, as I'm worried that if I'm taken to court it might affect my ability to get a new job.

As part of my previous employer's car scheme, I was required to enter into a personal finance arrangement to purchase a car with their selected provider. The interest rate was much worse than that if you walked into a garage as a private purchaser. The worst happened, and my employer sacked me. They have since agreed that it was unfair, and they made a final settlement of £1,000 for any finance shortfall on the car. The car was sold by the finance company at auction for a shockingly low figure (under the terms of the scheme, I could not sell it myself), which means that after the ETI is applied I still owe a shortfall of almost £4,000. I am still unemployed, and have absolutely no way to pay this. My previous employer won't assist at all. Any ideas on how I can sort this out?