Same for me too
EV salary sacrifice
- Thread starter inflames
- Start date
Same for me too
It will impact mine as I am on an average pension and I will soon have two SS EVs. I am on the 40% tax bracket and have "only" been paying into my pension for 22 years, so it's not going to be great to begin with. The impact on the pension is still a lot less than I and my wife were paying for decent (1 year old) used cars such as BMW X1, or Audi Q2 that depreciated ~£200 - £350 per month (depending on how long you keep them). That was before you add servicing, insurance, tyres and tax and not to mention much higher fuel costs with an ICE.
£430 per month for an I-Pace HSE
£300 per month for a Volvo C40
We both do about 10,000 miles per year. I know we could both get some cheap runabouts and in fact we have been using an iX20 while we wait on the C40 delivery. The problem is that "cheap" 2017 iX20 is costing about £350 per month just on fuel costs, depreciation, servicing, maintenance, tax, insurance and AA cover. With the lease cars all we have is electricity costs of about £30 - £35 per month.
Last edited:
I'm sure there are examples of cars that are a "good" deal but I've just never really found it in the time I've been looking (noting I only considered it and ordered around this time last year which clearly makes a big difference)
I'm also talking about the gross sacrifice value, not the net cost to you or I. Using the MG4 example mentioned earlier, if I plug in a trophy at 15k pa into our sacrifice configurator it will cost £680 gross, both insured and maintained.
Quickly looking at lease deals the lowest one I can see for 15k pa, maintained is £530pm (1 month deposit amortised, insurance would need to be added but this is unlikely to be a huge monthly sum, certainly wouldn't be more than a few hundred per year total for me). Obviously post tax, cost to the employee the balance swings but surely it's the Gross value that should be competitive as, I assume (wrongly?) the provider is paid in gross terms.
Despite this I'm well on board anyway, albeit my EV is a company car rather than salary sacrifice as it was marginally better value to me.
Last edited:
The cost to me is the Net cost.
The cost to 'the tax payer' is the difference between the Net and the Gross, which goes to the provider.
Last edited:
But what is the scheme provider paid? If you privately lease you pay that company X amount which will be equivalent to the gross here no?
I.e why should we accept Y provider is charging £680 per month for something other providers can manage on £100+ per month less?
I.e why should we accept Y provider is charging £680 per month for something other providers can manage on £100+ per month less?
Last edited:
Associate
- Joined
- 19 Nov 2021
- Posts
- 1,161
- Location
- Portsmouth
I challenged the Octopus guy on the difference. It came down to the various insurances, which aren't applicable on a private lease (for example early termination cover). Comprehensive insurance on the car is £50pm for me.
£340pm is cheaper that's true but too many people look at the monthly. You paid a £12k deposit. These deals have no deposit. Many lease deals don't include insurance which for a modern EV could be £50+pm, £600pa. Then there's servicing which is often not included too. The whole picture needs to be looked at and many aren't doing that, they just see £400pm vs £550pm and immediately think it's poor value. It's just differently organised.
Soldato
- Joined
- 30 Sep 2005
- Posts
- 16,838
They can work very, very well for some people 
insurance including my partner on Love electric pushes the monthly payment by additional £60
so assume it is my self as sole driver. my yearly fully comp insraunce is only £400 for the year = £34/m
service is £12/pm
340+34+12 = £386/m
currently enyaq iV 80 is £480/m so thats £4800 more than my 48m contract. my car has £3.5k options on it so that brings the different to £8300; paid £12,000 deposit so thats £3,700 advantage to lease in terms of outlay.
But my balloon is £19,000 at the end, and if the car resells for £23,000 I will break even with lease and if more I am in the win. I am pretty sure the car will have good residual.
When i ordered the car, the monthly was close to £600 from lease, meaning it was pointless for me to order the lease as i was paying more.
the lease needs to be around £400 mark for it to be outstanding. but for the lease to be like that, the residual must be quite high meaning PCP might still win out at the end.
Soldato
- Joined
- 27 Mar 2013
- Posts
- 9,458
Your insurance is extortionate, tyres for quick/expensive cars cost more, but tbh I budget 250 a tyre and its not far off with generally only 1 axle needing doing at a time. Arguably servicing should be next to nothing for an ev, isn't that another one of the selling points? I know that's not always the case, but a guy I work with has the mg3 and the service cost is ~150 but not sure what they do. Meanwhile my tesla coat me 30 quid for 2 pollen filters.
Last edited:
Deleted User 298457
Deleted User 298457
Pension changes definitely incentivises dumping the EV. I can seriously benefit from additional contributions now!
Last edited by a moderator:
But if you aren't the sole driver, you can't just decide to remove that extra insurance from your total outlay. Are you getting your tyres for free? I would assume no, or you would not be paying for services. So that could add an extra £800 every 20k - 25k miles on a heavy EV. So unless I am wrong on these points, you could be looking at around £2.5k - £3k extra costs over 4 years you seem to have forgotten.
Last edited:
love-electric doesnt have tyre cover.
my wife adds £100 to my yearly premium; but adds £60/m to lease which is worse in comparitive study for the lease.
I already included the service £12/m in my PCP monthly total of £386/m
below is what love-electric includes. New Enyaq comes with free road side assistance or Skoda Assist for 3yrs. no idea what it is to contiue the service beyond the 3yrs. but i cant imagine it costs a great deal if they give them out free for 3yrs.
my comparison is trying to make the lease as attractive as possible. it only gets worse when you apply personal situation to the deals. so in short, lease through SS is still unattractive. it was great in early 2022 but since March 2022 everything gone rotten. with high interest rate, i doubt lease will be a good option for many.
with slowing new car sales, it will keep the second hand cars supply constrained meaning the residual of the cars will be good...thats how I read the market. unless something dramatically change, like all new EV start to slash in price by 25% (either due to cheaper cost to build/better margin/glut of supply) which will have an immediate effect on all used car prices as well as lease/PCP/PCH prices
Last edited:
you could be pedantic, and say what about the cost of the £12K capital you injected in the PCP,
has your PCP actually been running through, and benefitted from the general car price inflation over last 12+ months
Deleted User 298457
Deleted User 298457
£312 on Arval 40% tax. All maintenance, tax, tyres, insurance etc included.On our scheme that same car/term/mileage is £356/month as a 20% taxpayer
I would say your assumptions on the constrained car supply is already showing signs of being very, VERY wrong. New car sales have risen over the past 5 or 6 months as wait times have reduced and with Tesla price drops used EV prices have tanked, knocking many thousands off EV residuals. So in the next 2-3 years or so, expect current EV risiduals to be poor as new cars are back to 2-3 month max wait times or less.
Many used EVs (including Enyaq) have lost ~£8k in the past few months.
Used electric car prices caught in vicious downward cycle as experts warn of trouble ahead
Plummeting used electric car values are in danger of knocking the wind out of the sails of the new EV market, warn experts. Speaking to Car Dealer,
cardealermagazine.co.uk
Last edited:
I dont doubt Love-electric is crap. but nevertheless my PCP was secured when rates were still cheap. 3.59 or something as interesting rate when i ordered the car. so i wont get a better preferential than that based on current rate.Then I think the problem is your employers salary sacrifice contract sucks
it is a bit of an unfair comparison that i am comparing financial deal from 1yr ago vs current condition. at the time i needed to order an EV, literally prices were changing on a weekly basis and no stock cars. I had a great deal on EV6 through the lease, put the order through, then be told 3 weeks later that they cant procure it and the same car would cost £120 more per month NET. it was just hopeless.