Salary sacrifice leasing

[MrSpanky49]

We now have a scheme in plave with fleet evolution, anyone had any dealings?

looking at the usual suspects, tesla 3 RWD is £713 pm gross for 70k miles over 4 years, maintenance/tyres/insurance included. seems a good deal? 40% taxpayer so woule cost me around 430 a month net.

[patch5674]

Zj2002 said:

ChocolateFrog said:

Zj2002 said:

Just had a play on the Zenith portal - £900 a month for an i5 40 Touring M Sport Pro or I4 M50.

Pretty depressing!

18 months to go on my i4 M50 (£600 a month) and at this rate it will be replaced by a shed.

Unless something dramatic changes. Mine will be my one and only foray.

I might man math myself into another one. But I think £800 a month is my cut off. Probably best I just stay off the zenith portal for the next year!

I know the deals aren't as good as the past few years but I think those were unusual times. Car prices have also gone barmy.

I have just pushed the button on an i5 touring 40 MSport comfort plus tech plus (not pro) through zenith, and it was less than £850 - including paint, 20, inch wheels, carbon trim and sun protection glass - insured in South Wales (this may help with lowering the costs).

The starting figure was £768 before taking it through to the proper quotes page.

Still expensive but the same car on the same terms from any of the normal leases is >£1,000 a month. The gross figure is actually broadly aligned with the costs

It is an £85K car now (that is a whole different topic). But cars with a cheaper P11d such as Q6 Etron are coming out more net.

[m3jappa]

Round 3 with trying to get a car from tusker and it seems to have finally worked.

i4 m50 started at (iirc) £615 order cancelled and went up to something like £800

q8 etron started at £715 order cancelled and went to something like £1100


Found an in stock q4 etron, pebble grey, black edition, 21" wheels £570

Order is all confirmed and meant to be here this week. Audi then emailed offering a free ohme home pro charger so effectively another grand off (if its considered a standard install).

A great deal imo when you consider no deposit, no maintenance, no tyres, no insurance, tax etc.

[James-gbg1e]

Is there a calculator for working out the gross/net cost (higher rate) or is it just a straight 40% off the quoted price (on Tusker)?

I presume given the SS nature of this, unless you manually adjust your pension payments, any % based contributions will drop (following the SS deduction), so this needs to be considered in the scheme of the saving? Putting in less also means your employer contribution takes a hit, which needs to be factored in the 'deal'?

Or am I seeing that incorrectly?

[JustinCredible]

James-gbg1e said:

Is there a calculator for working out the gross/net cost (higher rate) or is it just a straight 40% off the quoted price (on Tusker)?

I presume given the SS nature of this, unless you manually adjust your pension payments, any % based contributions will drop (following the SS deduction), so this needs to be considered in the scheme of the saving? Putting in less also means your employer contribution takes a hit, which needs to be factored in the 'deal'?

Or am I seeing that incorrectly?

(Our scheme) - re. the 40% gross/net it depends how much over the 40% threshold you are and how much the gross payments are. Broadly speaking though yes that's how it works i.e. if the gross payment was £1k a month and you gross salary was £80k then you would only "lose" £600 out of your pay packet each month. However, given the 40% tax bracket kicks in at around £50k salary, if your gross salary was £55k then the £1k a month would take that down to £43k, meaning your saving isn't as high - you'd save 40% on the 50-55k portion but only save 20% on the 43-50k portion.

Pension is unaffected, your contribution / employers contribution would be based on the full salary (£80k in the above example, not £68k).

[James-gbg1e]

JustinCredible said:

(Our scheme) - re. the 40% gross/net it depends how much over the 40% threshold you are and how much the gross payments are. Broadly speaking though yes that's how it works i.e. if the gross payment was £1k a month and you gross salary was £80k then you would only "lose" £600 out of your pay packet each month. However, given the 40% tax bracket kicks in at around £50k salary, if your gross salary was £55k then the £1k a month would take that down to £43k, meaning your saving isn't as high - you'd save 40% on the 50-55k portion but only save 20% on the 43-50k portion.

Pension is unaffected, your contribution / employers contribution would be based on the full salary (£80k in the above example, not £68k).

Thanks, that's very useful to appreciate. I checked the Tusker site before and the prices were a joke compared to what you find elsewhere, but I hadn't paid enough attention to the finer detail - plus when you factor insurance and so on, it makes more sense.

The outline via higher rate was also useful, thanks. It does indeed make sense for me to look at 🙂

[Sheepshanks]

James-gbg1e said:

Is there a calculator for working out the gross/net cost (higher rate) or is it just a straight 40% off the quoted price (on Tusker)?

I presume given the SS nature of this, unless you manually adjust your pension payments, any % based contributions will drop (following the SS deduction), so this needs to be considered in the scheme of the saving? Putting in less also means your employer contribution takes a hit, which needs to be factored in the 'deal'?

Or am I seeing that incorrectly?

The pension deductions depend on the type of pension you have - if it's some kind of Defined Benefit final salary (mainly only public sector or related employers now) then your contribution will go down (and the employers contribution goes down more, hence they like SS) and it affects your final pension.

Defined Contribution pension contributionns (both yours and employers) should stay the same.

[eein]

It pays to know what your total taxable income is - ie after any other tax free items like pension, and also adding on (non-ISA) savings interest. Then calculate your car salary sacrifice from wherever that lands.

Note that if your total taxable is £100k to £125k then you're looking at a 'effective' 60% income tax bracket (62 with NI) so the car would be 0.38x the gross cost plus BIK.

Also note on Tusker that while it makes it look like they include road tax, for electric that's currently zero however in their T&Cs is says any change in annual road tax will be revised in to your payments, so the impending £520 on electric cars will get added on to your payments when that kicks in.

I have quite a few colleagues on Tusker. With the insurance and tyres include its hard to beat, even at the 40% tax bracket.

[Sheepshanks]

eein said:

Also note on Tusker that while it makes it look like they include road tax, for electric that's currently zero however in their T&Cs is says any change in annual road tax will be revised in to your payments, so the impending £520 on electric cars will get added on to your payments when that kicks in.

The expenive car rate only applies to cars registered from April 25.

eein said:

I have quite a few colleagues on Tusker. With the insurance and tyres include its hard to beat, even at the 40% tax bracket.

It should be massively impossible to beat, but I suppose they're a business, so they get the most out if it they can.

[eein]

Sheepshanks said:

eein said:

Also note on Tusker that while it makes it look like they include road tax, for electric that's currently zero however in their T&Cs is says any change in annual road tax will be revised in to your payments, so the impending £520 on electric cars will get added on to your payments when that kicks in.

The expenive car rate only applies to cars registered from April 25.

eein said:

I have quite a few colleagues on Tusker. With the insurance and tyres include its hard to beat, even at the 40% tax bracket.

It should be massively impossible to beat, but I suppose they're a business, so they get the most out if it they can.

Ah, thanks, I'd missed the subtlety that despite electric car tax apply back to 2017 cars, the expensive premium is only for registrations from 1 April 2025 onwards.

Looks like I need to get on with ordering that i5 Touring so it gets registered before April 2025 and thus only have to pay £190 per year instead of the full £600 !

[J2daG1990]

ZiggyNiva said:

Been looking at one of these for the misses on a standard lease but they never seem to come down in price. I have a Model Y through octopus, and the summit would be less then £400 a month for me all in (substantially cheaper then car only elsewhere). I wonder if I can have 2 cars. Time to my CFO to see what can be done.

I'm sure with Octopus you can have as many as you want as long as after the SS it doesn't put you below minimum wage. That was my exact thinking as well as the misses would mainly be driving it and size wise it's not that much wider than her old fiat 500 or any car for that matter.. Slightly taller and a bit longer and it comes with all the parking gizmos. I also think they look the most aggressive out of all the cars using the same platform (Mokka, 3008, etc.)

[KTF]

My Leaf arrived today via Tusker and I am an instant convert to EVs.

Effortless to drive and so quiet inside. Single pedal mode is a game changer as well. Easy to deal with within minutes of turning it on and makes the brake pedal pointless.

[Pistonheadsdicoverer]

KTF said:

My Leaf arrived today via Tusker and I am an instant convert to EVs.

Effortless to drive and so quiet inside. Single pedal mode is a game changer as well. Easy to deal with within minutes of turning it on and makes the brake pedal pointless.

How much did it cost you?

[KTF]

Pistonheadsdicoverer said:

How much did it cost you?

£280 a month coming out of the salary. 4 years / 8k miles. Everything included.

[Tractor Driver]

Is the new Leaf still Chademo for away from home DC charging?

[KTF]

Tractor Driver said:

Is the new Leaf still Chademo for away from home DC charging?

Yes, it has a Chademo and Type 2 connector. The Chademo are not so common now but there are still plenty available on the public chargers.

[AyBee]

KTF said:

Pistonheadsdicoverer said:

How much did it cost you?

£280 a month coming out of the salary. 4 years / 8k miles. Everything included.

When you take into account that your fuel costs will now be almost zero and that cost includes insurance and maintenance, it's very hard to argue with it!

[nufcfan]

I am still toying with the SS leasing option.

Am I silly looking at PHEVs via this route? for example XC60 T6 Plus would cost be about £640 net - but £185 of that is BIK. Compared to something like a new Q6 which is £1318 gross and £618 net with £54 of that as BIK.

I suppose what matters is the end cost to me per month.

[anonymous-user]

nufcfan said:

I am still toying with the SS leasing option.

Am I silly looking at PHEVs via this route? for example XC60 T6 Plus would cost be about £640 net - but £185 of that is BIK. Compared to something like a new Q6 which is £1318 gross and £618 net with £54 of that as BIK.

I suppose what matters is the end cost to me per month.

If it were me I would be considering running costs as well.

Unless you are going to run the hybrid on elec only then the full elec car will cost considerably less to fuel.

Based upon those two I would choose the Q6 as it’s a new model and the XC60 has been around a while. Personal preference though.

[TheDrownedApe]

nufcfan said:

I am still toying with the SS leasing option.

Am I silly looking at PHEVs via this route? for example XC60 T6 Plus would cost be about £640 net - but £185 of that is BIK. Compared to something like a new Q6 which is £1318 gross and £618 net with £54 of that as BIK.

I suppose what matters is the end cost to me per month.

Always the bottom line. My car looks expensive when i see 690 come out of my gross salary each month but it's foolish to focus on that figure in isolation.