Leasing cars through your employer...

lordrobs · 8 Jun 2010 at 19:34

Ah, as I briefly mentioned in post #6 contrary to what I had previously been told the deduction of my monthly contribution is after my regular monthly deductions

I needed to at least rule it out and with a holiday coming up and a deadline for automatic acceptance I wanted to press myself into a decision by the end of this week. The more I dig into it the less appealing it gets.

I have just found out that the mileage rates for lease cars are 12ppm for petrol and just 10ppm for diesels. Even with all the eco guff it would be touch and go whether that would even cover the fuel costs.

When I have to do a 100 mile round trip to Kings Lynn at the moment I sit dead on the limit in the Octy and get low 40's mpg whilst racking up 40ppm. The car is paid for and has depreciated to just a few grand already anyway. Even with the potential expensive repairs on the horizon (DMF, turbo etc.) the left over cash after paying for my fuel leaves a fair old wedge in the bank.

Everything seems to be pointing at keeping the current motor at the moment...

[TW]Fox · 8 Jun 2010 at 19:36

Everyone at work is going bonkers about a similar scheme we are looking at introducing. I was almost interested until I saw that unless you get a low CO2 heap of junk its a waste of time. A 335i was something daft like £500 more than a 320d :/

s0ck · 8 Jun 2010 at 19:48

Your 'bypassing' BIK but STILL paying £230 on a Focus...

I guess this is the start of public sector cuts?

lordrobs · 8 Jun 2010 at 20:13

s0ck said:
Your 'bypassing' BIK but STILL paying £230 on a Focus...

I guess this is the start of public sector cuts?

I did originally look at a Mondeo but that was over £320 a month despite the list price actually being less than that of the Focus

Kingy · 8 Jun 2010 at 21:25

lordrobs said:
Even with the potential expensive repairs on the horizon (turbo etc.)

A KO4 beckons...

lordrobs · 8 Jun 2010 at 21:31

Kingy said:
A KO4 beckons...

I guess every cloud has a silver lining

I really need to stop finding ways to spend money on the thing

The_Abyss · 8 Jun 2010 at 21:50

[TW]Fox;16711649 said:
It's the monthly cost minus 20%.

SMART schemes are all from gross pay. So you save not only income tax, up to 50%, and also National Insurance, up to 12%.

[TW]Fox · 8 Jun 2010 at 22:40

The_Abyss said:
SMART schemes are all from gross pay.

He was told us on two seperate occasions in this thread that his scheme is from net pay.

If the scheme is gross you pay in company car tax instead of income tax which means unless you get a cruddy eco hippy car you dont really make any tax savings.

The_Abyss · 8 Jun 2010 at 22:49

[TW]Fox;16713293 said:
He was told us on two seperate occasions in this thread that his scheme is from net pay.

If the scheme is gross you pay in company car tax instead of income tax which means unless you get a cruddy eco hippy car you dont really make any tax savings.

I missed that - sounds similar to our place where you just get 12% of your salary as a car allowance. Sounds great until you take off the 40% tax and 12% NI....

OP - just keep the car and bank the cash.