Company Car EV Salary Sacrifice Scheme

SpeedFreak

SpeedFreak

SpeedFreak

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We have one at work and was wondering how the costs compare to others who are in similar schemes. It is an EV only scheme and includes insurance (with second driver), maintenance and tyres.

Examples are all base/lowest spec with Gross Price prior to tax adjustments (which vary based on personal circumstances). Also the quotes are 3 years with 10k miles.

VW ID3 £789 per month
BMW iX1 £1115
KIA EV6 £975
Audi Q4 eTron 40 £923


A quick check online and I can see the iX1 on a business lease ex VAT is £616. Allow an extra £100 for servicing, insurance and tyres and the mark up seems a bit steep at 50% :cry:

Can't imagine uptake will be high given you need to be a 45% tax payer to make the figures even work lol.
 
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SpeedFreak said:
We have one at work and was wondering how the costs compare to others who are in similar schemes. It is an EV only scheme and includes insurance (with second driver), maintenance and tyres.

Examples are all base/lowest spec with Gross Price prior to tax adjustments (which vary based on personal circumstances). Also the quotes are 3 years with 10k miles.

VW ID3 £789 per month
BMW iX1 £1115
KIA EV6 £975
Audi Q4 eTron 40 £923


A quick check online and I can see the iX1 on a business lease ex VAT is £616. Allow an extra £100 for servicing, insurance and tyres and the mark up seems a bit steep at 50% :cry:

Can't imagine uptake will be high given you need to be a 45% tax payer to make the figures even work lol.
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not sure I'd be taking then evn if I paid 45% tax, they are ridiculous
 
Checked a couple on ours for you

will be 30k, 3 years, maintained and insured:

iD3 gross £650
EV6 gross £850
IX1 £880 (worth noting when these were first released they came on at around £700 as I was looking out for them, popularity clearly makes a difference)

I've always found out "deals" to be pretty comparable to the private market (other than when the car is clearly expensive for what it is on the portal, i.e the EV6 above imo) when considering the cost of insurance, maintenance on top plus considering these are zero deposit- yours don't look great!
 
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For comparison on my EV scheme I’ve gone for a polestar 2, pilot and plus pack (so about a 56k car) with 12,000 miles and 4yrs lease, including a waiver for early termination - it works out at £930ish gross per month.

I did not however add the insurance as it was way over priced for my situation, and it was much cheaper to insure myself.

I compared to the lowest deposit lease (since this one is no deposit, but that’s hard to find on the open market) and I found it to be maybe £80-90 over the going rate.

After dumping the full allowance into the pension it leaves me in the punishment band of 63.5% marginal tax rate so the net cost is pretty reasonable, especially after the savings on servicing, fuel, tyres etc is considered.

They are still bandits however, for example including maintenance in the bolt on package when polestar includes it for 3yrs anyway!
 
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Quick check of my scheme based on higher tax rate, same term, maintenance and insurance etc, net:

VW ID3 £395
BMW iX1 £557
KIA EV6 £504
Audi Q4 eTron 40 £475

edit, gross for the same;

VW ID3 £728
BMW iX1 £1028
KIA EV6 £933
Audi Q4 eTron 40 £868


As mentioned above, no deposit but also they have the risk of cancellation if you leave your job normally. Certainly on my scheme there is no liability
 
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b0rn2sk8 said:
The hidden hit on your pension would be significant on those prices.
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Re hidden hit are you talking about eg if the employer pays 10% pension contribution then with the “lower salary” with salary sacrifice they’ll be paying 10% on a lower figure?

If so it’s definitely something worth clarifying with your employer - mine confirmed that the pension is still paid at the original unadulterated salary rate (same as for salary sacrifice into pension).
 
Zeeflyboy said:
Re hidden hit are you talking about eg if the employer pays 10% pension contribution then with the “lower salary” with salary sacrifice they’ll be paying 10% on a lower figure?

If so it’s definitely something worth clarifying with your employer - mine confirmed that the pension is still paid at the original unadulterated salary rate (same as for salary sacrifice into pension).
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It will certainly apply to anyone on a defined benefit/final salary type pension. I'm on a career average pension so taking a salary sacrifice scheme would knock down each year's salary by a fair chunk and so bring the average down.
 
snapdragon69 said:
I guess these prices are for no deposit, whereas the ones you see advertised on-line require a few grand to be stumped up immediately?
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Private leases were all 1 month deposit.
Rotty said:
not sure I'd be taking then evn if I paid 45% tax, they are ridiculous
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Can't imagine many in the 20% will be interested in a lot of the cars. There are a few that could work, for example a base MG4 which is £525 Gross, £366 net in that pay bracket which compares well to £400 private which doesn't have tyres, insurance and servicing when netted, but the provider are clearly still scalping a lot here.
 
jpaul said:
seems like very high pricing I was looking at some ev leases the other day closer to £500, and thinking if I was still commuting 60 odd miles a day that wouldn't be bad

Leasing Deals for Volkswagen Id.3 Hatchback 150kW Life Pro Perform 58kWh 5dr Auto [120kW Ch] - Central UK Vehicle Leasing

centralukvehicleleasing.co.uk centralukvehicleleasing.co.uk
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My wife's ID3 is a Family with met paint, alloys and heatpump, 1x36 , 10k mpa at £320 per month. Somehow I don't think that will be the case when she comes to renew!
 
Just checked ours, 3 years/30k, including tyres/maintenance, leaver protection, gap insurance, for basic rate tax payer:

Net:

VW ID3 £539
BMW iX1 £783
KIA EV6 £671
Audi Q4 eTron 40 £745

Gross:

VW ID3 £775
BMW iX1 £1,127
KIA EV6 £965
Audi Q4 eTron 40 £1,071

Not looked at those particular vehicles, but I've just ordered a Niro EV through our scheme, and for the same vehicle on private PCP would be ~£200 more, excluding maintenance etc.
 
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I have a Hyundai ioniq 5 awd premium on order through Arval ignition salary sacrifice for 36 months and 35k miles. Includes Servicing, tyres, insurance, etc is around the £560 mark including BIK and 0 interest and no deposit. To get anywhere close to this monthly payment I would have to pay around 2 years worth of this payment as a deposit. I just got to wait for it to be built now.
 
Used to have one of these at my last employer and it seem like a complete rip off - yes your getting no deposit, insurance, servicing tyres. But your supposed to be getting it at 40-50% off and it just seems to work out a little cheaper than doing it yourself :rolleyes:
 
Agree it seems ever so convenient how the sums work out given the provider will (I assume) be getting paid the gross salary sacrifice amount
 
£515 gross for everything on a cupra born. Was about 3 price increases ago though £34.1k p11d value.
 
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