EV salary sacrifice

[Sinbad2000]

Its not a massive saving mind

You could finance it from MG on their terrible finance rates cheaper, tax servicing and tyres won't really be needed in that time and insurance is not high.

buy it at the end and run it for the next decade, it has what an 8 yr warranty, far cheaper ownership proposition than sitting on a perpetual lease.

Ordinarily I'd think like this, but I expect EV/zero emission tech is going to move quickly in the next few years... If it doesn't, I will look at buying the thing at the end of the lease period - but more likely upgrading to the bonkers AWD version

 

[Deleted User 298457]

Its not a massive saving mind

You could finance it from MG on their terrible finance rates cheaper, tax servicing and tyres won't really be needed in that time and insurance is not high.

buy it at the end and run it for the next decade, it has what an 8 yr warranty, far cheaper ownership proposition than sitting on a perpetual lease.

Definitely worth considering if you can make the budget work. Some of these leases are in exchange for people's future security (pension). I'll try and get rid of my current lease at the end of term.

 

[Steven Rimmington]

that looks like you're a 20% taxpayer?

Would this make a difference as to why I'm seeing higher prices?

The same car and other settings is £315 for me

That's a big chunk of change £100 cheaper, there must be other factors as to why the price is vastly different. I probably would be tempted at £315

 

[Rilot]

Would this make a difference as to why I'm seeing higher prices?

Yes, it makes a massive difference.

 

[tom_e]

Would this make a difference as to why I'm seeing higher prices?

Yes, you get a bigger saving if you pay more tax.

 

[theone8181]

We had it offered at our place. I priced up a tesla like mine and though 900 a month wasn't too bad so 600 after tax, but not that was the figure . Road tax, tyres and insurance don't add that much on, especially for cheaper cars. Think it was about 500 a month for a fiat 500.

Ahh I posted before the above posters, I'm only a peasant so only pay 20% tax .

 

[SDK^]

You could finance it from MG on their terrible finance rates cheaper, tax servicing and tyres won't really be needed in that time and insurance is not high.

• Tyres - depends on mileage : I had 4 new tyres fitted to my Polestar 2 before Xmas, after 2 years (23k miles), this was £900.
• Insurance - this would be £800 per year me (clean license and full no claims)
• Servicing - This is included with my car so won't be any extra

This two cost items add about £100 a month to my car cost

 

[sandys]

The quotes were 5k miles lease so over 4yrs, no tyres, insurance always different for all but having your own policy and no claims tends to give you low insurance, not paid more than £300 on any car for years, average is £180. ( I have a few policies on a number of vehicles, each with varying NCD, guess I'm just that in that 50yr old sweetspot before my premiums start rising due to old age )

 

[SDK^]

Would this make a difference as to why I'm seeing higher prices?

That's a big chunk of change £100 cheaper, there must be other factors as to why the price is vastly different. I probably would be tempted at £315

Expand your 'show quote breakdown' (red text) and you'll see the Gross to Net calculation

 

[glenimp617]

I'm replacing my etron with an MG4 trophy in September. Both through tusker.

Think I'll be paying £360ish a month, but the difference between companies is the type of deal they have with them. I asked a while back, and some companies are more because they take added insurance and whatnot. It's to protect the employer, you never get to see the fine detail.

 

[Sinbad2000]

Would this make a difference as to why I'm seeing higher prices?

Yes.
Basically the salary sacrifice takes the cost off your before-tax salary, reducing your taxable income.
If you're above 50k(ish), then every pound you earn above 50k is taxed at 40p. So basically with the salary sacrifice, the government subsidises 40% of your monthly cost.
If you're a 20%er, then you only get 20% tax relief and thus half the "subsidy".

 

[Kenai]

But I'm used to having a company car so pay very little.

Presumably you'll be getting paid a car allowance if you're no longer taking a company car (so you effectively pay this for your company car - for example you might be missing out on £500 per month allowance to be given a company car)

 

[Haggisman]

The same car and other settings is £315 for me

On our scheme that same car/term/mileage is £356/month as a 20% taxpayer

 

[rodenal]

Very similar on ours, £310 40% £350ish 20% - ours is Arval which rarely looks competitive tbh

 

[Foghorn Leghorn]

Yes.
Basically the salary sacrifice takes the cost off your before-tax salary, reducing your taxable income.
If you're above 50k(ish), then every pound you earn above 50k is taxed at 40p. So basically with the salary sacrifice, the government subsidises 40% of your monthly cost.
If you're a 20%er, then you only get 20% tax relief and thus half the "subsidy".

As @dLockers mentioned above you need to check that the salary sacrifice won't impact on your pension. For example if it's career average or the deduction drops you out of the higher tax bracket.

 

[Hawk Tuah]

The difference in price between these company schemes and what you can get privately is utterly ridiculous.

 

[rodenal]

Yep, it's all a complete con pitched just about low enough to entice you in with some marginal savings. All the while someone is getting paid the gross amount

 

[pc-guy]

Got loveelectric at work. Nothing on there is appealing as a lease. Need a family car and the ioniq 5 and EV6 are stupidly priced. Even with the price slashed Y they still rinse you.

Lease deal is just stupid atm. Almost trying to recover 80% of the OTR value from the lease it seems.

I currently have Enyaq 80iV on PCP with £340/m payment with. £12k deposit. Even with insurance and covers etc I worked out to be roughly on par with the Lease and I have equity in the car.

 

[SDK^]

The difference in price between these company schemes and what you can get privately is utterly ridiculous.

Yep, it's all a complete con pitched just about low enough to entice you in with some marginal savings. All the while someone is getting paid the gross amount

I've not seen any private lease schemes cheaper for the last 2 cars I've had - Happy to be proved wrong though.
These include the usual stuff - Ins, tyres, maintenance, roadside assistance, for 36 months, 36k miles

• Polestar 2 DMLR with Pilot & Plus packs and option 20" wheels: , for £580pm.
  -> For just the car - Polestar want £1k pm, plus £3k down
  
  
• BMW iX 40, M-Sport with option Comfort pack and individual 22" wheels : £700pm.
  -> The cheapest I've seen just the car on a private lease, with no options is £1,200pm, with £1.2k down

Also, having an EV enables household energy savings through being able to access Octopus Go.
This has saved us £700 through the winter months (Nov-Feb) , from running our house all day from overnight battery storage charging at 7.5p kWh vs running the house at 34p kWh on the SVR unit price.

 

[Sinbad2000]

As @dLockers mentioned above you need to check that the salary sacrifice won't impact on your pension. For example if it's career average or the deduction drops you out of the higher tax bracket.

Indeed.

I checked on mine, the sacrifice does not affect my pensionable salary (ie the company still makes contributions on the full extent of my salary)