Salary sacrifice leasing

[z4RRSchris]

ARF8885 said:

Early Termination Insurance (ETI) - Worth it?

Our current SS Provider offers this (via a 3rd party) and covers the following:

- Accidental Death
- Loss of Licence
- Resignation
- Instalment Protection Benefit (long term sick, maternity etc)
- Dismissal Gross Misconduct

I’ve been reading other providers of ETI and even looked at whether this could be done direct.

But what I hoped it would include and it doesn’t, what a change in circumstances etc.

Example being, I’m getting a Lotus Eletre and seems to suit our family well even with a planned 3rd child. The scenario I played out in my head was, what if we were to have twins (going through fertility treatment, so a possibility).

Is the ETI worth it? I’ve never had any other payment protection in place previously with other PCH’s we’ve taken out privately, just this is a BCH/SS so differs slightly.

We made our scheme have this so we wouldnt be shafted with a car if we made someone redundant. which happened recently and we just handed the car back.

[z4RRSchris]

ARF8885 said:

z4RRSchris said:

ARF8885 said:

I got the BCH quote direct from Lotus, which included the Maintenance, Servicing and Tyres.

Got this and plugged it into the SS Scheme which then added the Early Termination Insurance, Car Insurance, breakdown cover, etc

Seemed to be the best way to do it as the figures the SS Scheme were getting was ridiculous.

sorry how does this work? how are you sourcing external quotes for teh SS scheme?

They used the BCH figures with VAT, Maintenance and Servicing for the Gross Salary Sacrifice.

sorry still dont understand,

whos the SS provider? and how are you forcing them to use an alternative 3rd party lease quote?

[interstellar]

z4RRSchris said:

ARF8885 said:

Early Termination Insurance (ETI) - Worth it?

Our current SS Provider offers this (via a 3rd party) and covers the following:

- Accidental Death
- Loss of Licence
- Resignation
- Instalment Protection Benefit (long term sick, maternity etc)
- Dismissal Gross Misconduct

I’ve been reading other providers of ETI and even looked at whether this could be done direct.

But what I hoped it would include and it doesn’t, what a change in circumstances etc.

Example being, I’m getting a Lotus Eletre and seems to suit our family well even with a planned 3rd child. The scenario I played out in my head was, what if we were to have twins (going through fertility treatment, so a possibility).

Is the ETI worth it? I’ve never had any other payment protection in place previously with other PCH’s we’ve taken out privately, just this is a BCH/SS so differs slightly.

We made our scheme have this so we wouldnt be shafted with a car if we made someone redundant. which happened recently and we just handed the car back.

How much does the ETI add for the employee roughly? Does it not make it uncompetitive? I have about 20 people in cars but we only offer cash allowance. Would like to do SS but its getting stuck with cars from leavers thats the issue.

[ARF8885]

interstellar said:

z4RRSchris said:

ARF8885 said:

Early Termination Insurance (ETI) - Worth it?

Our current SS Provider offers this (via a 3rd party) and covers the following:

- Accidental Death
- Loss of Licence
- Resignation
- Instalment Protection Benefit (long term sick, maternity etc)
- Dismissal Gross Misconduct

I’ve been reading other providers of ETI and even looked at whether this could be done direct.

But what I hoped it would include and it doesn’t, what a change in circumstances etc.

Example being, I’m getting a Lotus Eletre and seems to suit our family well even with a planned 3rd child. The scenario I played out in my head was, what if we were to have twins (going through fertility treatment, so a possibility).

Is the ETI worth it? I’ve never had any other payment protection in place previously with other PCH’s we’ve taken out privately, just this is a BCH/SS so differs slightly.

We made our scheme have this so we wouldnt be shafted with a car if we made someone redundant. which happened recently and we just handed the car back.

How much does the ETI add for the employee roughly? Does it not make it uncompetitive? I have about 20 people in cars but we only offer cash allowance. Would like to do SS but its getting stuck with cars from leavers thats the issue.

Works out at a gross cost per month of circa £70-80. Approx £35-40 net for me.

[ARF8885]

z4RRSchris said:

ARF8885 said:

z4RRSchris said:

ARF8885 said:

I got the BCH quote direct from Lotus, which included the Maintenance, Servicing and Tyres.

Got this and plugged it into the SS Scheme which then added the Early Termination Insurance, Car Insurance, breakdown cover, etc

Seemed to be the best way to do it as the figures the SS Scheme were getting was ridiculous.

sorry how does this work? how are you sourcing external quotes for teh SS scheme?

They used the BCH figures with VAT, Maintenance and Servicing for the Gross Salary Sacrifice.

sorry still dont understand,

whos the SS provider? and how are you forcing them to use an alternative 3rd party lease quote?

The SS Provider is CVSL. Not sure if this is how all SS providers do it, but they told me to get the quote from Lotus and to issue to them direct, they would then put through the SS and advise on numbers. They then deal direct with Lotus and fund the car via their own funder etc.

[interstellar]

ARF8885 said:

z4RRSchris said:

ARF8885 said:

z4RRSchris said:

ARF8885 said:

I got the BCH quote direct from Lotus, which included the Maintenance, Servicing and Tyres.

Got this and plugged it into the SS Scheme which then added the Early Termination Insurance, Car Insurance, breakdown cover, etc

Seemed to be the best way to do it as the figures the SS Scheme were getting was ridiculous.

sorry how does this work? how are you sourcing external quotes for teh SS scheme?

They used the BCH figures with VAT, Maintenance and Servicing for the Gross Salary Sacrifice.

sorry still dont understand,

whos the SS provider? and how are you forcing them to use an alternative 3rd party lease quote?

The SS Provider is CVSL. Not sure if this is how all SS providers do it, but they told me to get the quote from Lotus and to issue to them direct, they would then put through the SS and advise on numbers. They then deal direct with Lotus and fund the car via their own funder etc.

I am confused by this too. CVSL is your companys Salary Sacrifice partner?

[z4RRSchris]

ARF8885 said:

The SS Provider is CVSL. Not sure if this is how all SS providers do it, but they told me to get the quote from Lotus and to issue to them direct, they would then put through the SS and advise on numbers. They then deal direct with Lotus and fund the car via their own funder etc.

thats a nice way of doing it,

so what was the quote PM from lotus, and how much extra was the extras? Gross pls.

[J2daG1990]

Not sure if it's an error with the costing or just a discount, but today on my work's Octopus Energy Salary Sacrifice Electric Car Scheme, the Jeep Avenger Summit (top spec version) was coming out cheaper net cost than the base spec model.

I've put an order in to see if it goes through finger's crossed.

Last week when I specced it I was getting £512 net on their calculator and then when I did it today with no changes it was coming out at £465. This was the Summit with Sun/Volcano Bi-Colour Metallic Paint and 10k miles over 3 years.

You could do 8k and basic paint and get it even cheaper if need be, the Summit comes with quite a lot as standard.

[TheDrownedApe]

J2daG1990 said:

Not sure if it's an error with the costing or just a discount, but today on my work's Octopus Energy Salary Sacrifice Electric Car Scheme, the Jeep Avenger Summit (top spec version) was coming out cheaper net cost than the base spec model.

I've put an order in to see if it goes through finger's crossed.

Last week when I specced it I was getting £512 net on their calculator and then when I did it today with no changes it was coming out at £465. This was the Summit with Sun/Volcano Bi-Colour Metallic Paint and 10k miles over 3 years.

You could do 8k and basic paint and get it even cheaper if need be, the Summit comes with quite a lot as standard.

my scheme has the Summit as most expensive at £464. Longitude is £431

[Basil Brush]

z4RRSchris said:

ARF8885 said:

The SS Provider is CVSL. Not sure if this is how all SS providers do it, but they told me to get the quote from Lotus and to issue to them direct, they would then put through the SS and advise on numbers. They then deal direct with Lotus and fund the car via their own funder etc.

thats a nice way of doing it,

so what was the quote PM from lotus, and how much extra was the extras? Gross pls.

I agree, that's the way it should be done. Lease on the open market and then have an admin company putting the SS wrapper on it for a fee.

[PistonTim]

J2daG1990 said:

Not sure if it's an error with the costing or just a discount, but today on my work's Octopus Energy Salary Sacrifice Electric Car Scheme, the Jeep Avenger Summit (top spec version) was coming out cheaper net cost than the base spec model.

I've put an order in to see if it goes through finger's crossed.

Last week when I specced it I was getting £512 net on their calculator and then when I did it today with no changes it was coming out at £465. This was the Summit with Sun/Volcano Bi-Colour Metallic Paint and 10k miles over 3 years.

You could do 8k and basic paint and get it even cheaper if need be, the Summit comes with quite a lot as standard.

This is quite common, the top spec one has much better residuals than boggo spec which alters the lease prices accordingly.

Plus manufacturers often offer good deals on higher specced cars as they want to see more out there not the cheap ones.

When we ordered some MINI for fleet we were allowed to purchase just 'one' models by BMW for example.

[z4RRSchris]

Basil Brush said:

z4RRSchris said:

ARF8885 said:

The SS Provider is CVSL. Not sure if this is how all SS providers do it, but they told me to get the quote from Lotus and to issue to them direct, they would then put through the SS and advise on numbers. They then deal direct with Lotus and fund the car via their own funder etc.

thats a nice way of doing it,

so what was the quote PM from lotus, and how much extra was the extras? Gross pls.

I agree, that's the way it should be done. Lease on the open market and then have an admin company putting the SS wrapper on it for a fee.

in essence thats how Cycle to work scheme works, you can get best value bike from anywhere

[ARF8885]

CVSL effectively charge us a £250+VAT fee for pulling together the SS.

With this on the Eletre, as there’s no commission offered by Lotus, their fee is £500+VAT.

[riskyj]

Of course the big boys wouldn’t even dream of entertaining this.

[J2daG1990]

PistonTim said:

This is quite common, the top spec one has much better residuals than boggo spec which alters the lease prices accordingly.

Plus manufacturers often offer good deals on higher specced cars as they want to see more out there not the cheap ones.

When we ordered some MINI for fleet we were allowed to purchase just 'one' models by BMW for example.

Yes makes sense, but I only noticed this today. Last week the top spec was £512 with my config and now its £465 same spec no changes. Happy days as I was waiting for prices to drop!

[J2daG1990]

Basil Brush said:

I agree, that's the way it should be done. Lease on the open market and then have an admin company putting the SS wrapper on it for a fee.

You'd still then have to sort out your own charger, insurance, servicing and maintenance, etc. I do agree though the SS companies now are taking their own chunk knowing the end customer still has a slight saving, but in reality that saving could be a lot better.

[ARF8885]

J2daG1990 said:

Basil Brush said:

I agree, that's the way it should be done. Lease on the open market and then have an admin company putting the SS wrapper on it for a fee.

You'd still then have to sort out your own charger, insurance, servicing and maintenance, etc. I do agree though the SS companies now are taking their own chunk knowing the end customer still has a slight saving, but in reality that saving could be a lot better.

Ours includes Insurance, Maintenance, Servicing. I can do a separate SS for the charger.

[Basil Brush]

J2daG1990 said:

Basil Brush said:

I agree, that's the way it should be done. Lease on the open market and then have an admin company putting the SS wrapper on it for a fee.

You'd still then have to sort out your own charger, insurance, servicing and maintenance, etc. I do agree though the SS companies now are taking their own chunk knowing the end customer still has a slight saving, but in reality that saving could be a lot better.

I'd more than happily sort out my own insurance if it saved me a grand a month.

[z4RRSchris]

if that’s the case i’m switching our scheme from
Octopus to them.

what was the “extras” package PM gross?

[ChocolateFrog]

Comparing quotes with one of my colleagues.

Exactly the same quotes and mine was £15pm more expensive.

Must be the insurance risk rating of my postcode? I'm older with a longer driving history, same job obviously so can't think of anything else.