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Emergency

Company car on termination: return and private use

If the company car may also be used privately, it is part of the remuneration. On termination, release from work or a cancellation, the question arises whether and when it must be returned. That depends on the provision agreement.

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Your chances of getting your money back

If private use of the company car is agreed, it is a benefit in kind and part of the consideration for the work. As long as the employment relationship exists and remuneration is owed, the car generally cannot simply be withdrawn.
A valid reservation of revocation in the agreement can allow the employer to revoke private use under conditions, for example during a release from work. Blanket, inappropriate revocation clauses, however, are often invalid.

What you should do now

  1. 1

    1. Check the agreement

    Look in the company-car or provision agreement for return and revocation clauses.

  2. 2

    2. Clarify the status

    Clarify whether you are released from work and whether remuneration continues.

  3. 3

    3. Arrange the return

    Agree the time, place and condition of the return and document the mileage.

  4. 4

    4. Check loss of use

    If private use is withdrawn without justification, compensation may come into consideration.

How to spot the scam

  • The car is demanded back immediately despite continuing remuneration.
  • A blanket revocation clause is meant to end private use at any time.
  • The return condition and mileage are not documented.

Frequently asked questions

Do I have to return the company car immediately on termination?

Not necessarily. If private use is agreed, it is part of the remuneration. As long as the employment relationship runs and pay is owed, the use usually remains. Decisive are the return and revocation clauses of the agreement.

May the employer take the car during a release from work?

Only if a valid reservation of revocation allows it. Blanket clauses that withdraw private use at any time without an objective reason are often invalid. If the use is withdrawn without justification, a financial compensation can arise.

Do I get compensation if I have to hand over the car?

If the agreed private use is ended early without justification, a claim for loss of use in the amount of the benefit in kind can exist. Whether and in what amount depends on the agreement and the circumstances.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.