EV general discussion
- Thread starter Ricochet J
- Start date
Yup a lot of SS include insurance, maintenance (inc tyres) and breakdown. The insurance alone can make it a lot more viable given some of the premiums on Teslas
Definitely have to enquire.
The 207 is costing about 400 a year in repairs/servicing + insurance at who knows what this year + fuel.
I still think it's cheaper. But now I'm in 40pc tax it's probably quite close.
Still I'd be concerned at acquiring damage to a new car for what i do
Deleted User 298457
Deleted User 298457
An old banger will never compete (insurance dependent). The cheapest EV for me at the moment (excluding that bicycle conversion Citroen offer lol) is the MG. It's still £250/mo net.
The big pull for me was my wife is a brand new driver so was paying £1200/year anyway.
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Yes, the EV Salary Sacrifice route is not cheap - it's cheaper than buying a new car using other methods, but it's still new car expensive.
So starting from £300 a month for a base spec MG4, rising to £400+ per month for a low spec Kia Soul / EV6, VW ID 3 / 4, then up to £500+ for low spec Polestar 2 / Tesla M 3/Y's.
So starting from £300 a month for a base spec MG4, rising to £400+ per month for a low spec Kia Soul / EV6, VW ID 3 / 4, then up to £500+ for low spec Polestar 2 / Tesla M 3/Y's.
Deleted User 298457
Deleted User 298457
And ignoring the alternative to avoid the tax is to pay into pension, it's a double whammy when you consider the opportunity cost.
Just remember, by sacrificing salary, the tax % you save is dependent on how far into that bracket you are.
Don't assume (like some people i've met) that by being just into the 40% bracket, you'll automatically save 40% on the full costs - if you're only paying 40% tax on say £100 worth of your monthly salary and sacrifice £1000, you'll be saving 40% on £100 of that, and 20% on £900 of it (in very simplistic terms).
So this is after tax including BIK implications. This is for a higher rate tax payer.
I get a car allowance so this is actually quite powerful option when I compare against taking the cash (that is the taxed) and looking for a car were finance is running 6-9%.
Edit. To be clear: with my allowance I am far enough into the higher rate band that the whole car is discounted by 40%.
I haven’t ordered yet, waiting for my PDR to confirm my budget. I will be ordering in Feb.
This is from the octopuses portal, not a full quote. So I don’t know if it changes. It’s fully insured, maintained, tires, breakdown cover.
3 years, 15k miles per year.
I am toying with a model 3 long range (AWD) in the new red on a 4 year for £700 / month.
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Deleted User 298457
Deleted User 298457
Car allowance is irrelevant because you'd get that whether it was an EV SS or an old banger.
It's very complicated.
Which probably puts a lot Of people off.
For example if my company only offered premium models that's a no no. Then there's this allowance I don't know about, etc.
I'm pretty sure all of it would be in the 40pc bracket. At least for the type of car I'd want. A cheap one
Which probably puts a lot Of people off.
For example if my company only offered premium models that's a no no. Then there's this allowance I don't know about, etc.
I'm pretty sure all of it would be in the 40pc bracket. At least for the type of car I'd want. A cheap one
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I do this aggressively, I’m putting the equivalent of 20% in at the moment for salary sacrifice.
Car cost are based on my post salary sacrifice number. I.e. what the tax man thinks I earn. I’m currently getting bent over due to a 16% company car BIX and child benefit clawback.
So I have more to spend on paper.
If I use it towards a SS EV it is more of a discount than taking it, loosing 40% and then trying to get a second hand car.
As an example, I will be paying less to SS a new Tesla then buying a 3 year old one with 40-50k on the clock.
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Deleted User 298457
Deleted User 298457
Also, as I said to my wife, just cost up taxis too. People for some reason are obsessed with having a car, but unless your life dictates it; it can be way more convenient and cheaper to grab an Uber.
Deleted User 298457
Deleted User 298457
The car allowance is irrelevant entirely, because that statement applies to your overall salary anyway.
Car allowances are just mechanisms for employers to pay less pension, bonus and artificially increase your net pay.
We can agree to disagree. I currently have a company car that goes back in July.
I need a car for work. And don’t have one. So I have to get something. The car allowance discount applies pre tax is better than post.
When I compare to getting my own car. EV or ICE I can’t beat the price of a SS EV for a new car vs second hand.
Unless I go full for a banger.
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Deleted User 298457
Deleted User 298457
You are missing my point --- you shouldn't treat the "car allowance" as anything other than a salary top-up that isn't pensionable.
You can simply take the car allowance as real money. You aren't getting any specific benefit or discount from the nature of it being called a car allowance.
Some people seem to see the £500/mo car allowance and treat it like a budget to buy a car. It isn't, it's real money you could have in your pocket. Your budget should be based on your total take home/what you want to spend.
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Though it is worth bearing in mind, some companies place restrictions on it, such that you'll only get paid it if you are running a car that's less than 3 years old, with emissions under 120g/km etc. etc. - which can tip the balance, if it would be effectively forcing you to spend it on a particular type of car anyway.
I get I can just take the money. But I need to get a replacement car. So if I SS into a car it’s better than taking the money and trying to put it towards something else’s.
Either way I need to put money in to fund an appropriate new (to me) car, I’m a lot better of via the SS path than taking the cash and additional tax.
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And this, although not as restrictive. To get something appropriate will still cost me more (net) that the SS EV.
I think all @dlockers is really picking up on is the phrasing "I get a car allowance so this is actually quite powerful option"
It's not the car allowance at play here, it's that sacrificing salary can be very tax efficient, particularly for higher rate tax payers - this would be the case whether you receive an allowance or it was all just called your salary.
People who may not fully understand how it all works, may be misled into thinking that a sacrifice scheme holds some sort of additional benefit if you get paid an allowance vs if you don't - in reality there will just be some minor differences when it comes to pension contributions etc.
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