Salary sacrifice leasing

[SWoll]

Cascade360 said:

SWoll said:

Cascade360 said:

10k miles / 3 years / no options on Zenith for me:

That's a significant difference in gross cost compared to the poster above. Possibly down to size of account, chosen coverage for early termination etc?

zj2016 said:

Ooft, that’s dear.

Any idea what the termination terms are on your deal? i know some companies expect a significant payment from the driver if they decide to leave the company in the first year of the agreement etc?

Edited by SWoll on Monday 22 November 11:15

I am not sure. My company employees probably around 5,000 people, but the majority will not have salary sacrifice cars. There is no ability to terminate early, other than on resignation.
This is what it says about termination on resignation in the FAQ:

On resigning you must call Zenith immediately who will advise you of your options, which are:

° Return the vehicle to Zenith and pay an early termination charge. The charge will be the higher of 40% of the outstanding lease costs due to the Owner or four months' lease payments due to the Owner (except where that lease has less than four months to run, in which case the cost charged will be the remaining lease cost), plus any vehicle movement costs, excess mileage and/or damage charges.

° Buy the vehicle outright for the current market value, once the early termination charge and any excess mileage charges have been settled. If you opt for this then you will need to arrange your own insurance, maintenance and repairs, road fund licences, etc.

° Take the vehicle over on a Personal Contract Purchase (PCP) arrangement with Zenith and keep the vehicle on a personal lease (subject to confirmation from Zenith) once any termination costs have been settled. If you opt for this then you will need to arrange your own insurance, maintenance and repairs, road fund licences etc.

So that expensive and still some serious costs if you choose to terminate early in the agreement and can't take the car on?

If I'm reading that right it's 40% of the lease costs, so if you leave after 6 months you'd owe them (30 x £1250) x 40% or £15,000..

It stung when I handed back a company car a few years ago 2 years into a 4 year agreement and had to pay a % of the uplift I'd chosen to a better model on the list. That cost me about £1200..

Edited by SWoll on Monday 22 November 13:56

[NSS89]

Thoughts on the below through Zenith:

Tesla Model Y
£591pm
10k pa
36 months

I was going to go for the Model 3 but that’s now coming in at £550 but previously it was around £490 (not sure what’s changed)

[Harry Flashman]

Cascade360 said:

This is the car to make sure we are comparing like for like:



I am in my late twenties and in SE London with 4 years NCB which might make me relatively expensive for insurance, but should not make a huge difference I would not have thought.

We are with Zenith, and this is what my screen is showing me, right now...

ETA. This is not an M50. Oops.

[Cascade360]

Yes, not an M50!

[Harry Flashman]

From Zenith,I would pay net, for an Ioniq 5 125kwh SE connect, £430.

Available for the same from leasing.com.

Difference is that the salary sacrifice deal includes insurance, servicing and maintemance, which will save 1000 quid or so a year here in London. So not worthless at all, but hardly a game changer.

[Cascade360]

Harry Flashman said:

This all looks like bks. I would pay net, for an Ioniq 5 125kwh SE connect, £430.

Available for the same from leasing.com.

Only difference is that the salary sacrifice deal includes insurance, which will save 600quid or so a year here in London. So not worthless, but hardly a game changer.

Seems some cars are relatively cheap through Zenith (e.g. Taycan) but most seem to be deliberately priced to be just a bit cheaper than a private lease net, so very expensive gross.

Advantages - insurance and maintenance, no deposit.
Disadvantages - tax benefits could change and increase price (i think?), pension impact (reduces employer contributions i think?), can't get out of the contract.

[CheesecakeRunner]

SWoll said:

Cascade360 said:

10k miles / 3 years / no options on Zenith for me:

That's a significant difference in gross cost compared to the poster above. Possibly down to size of account, chosen coverage for early termination etc?

I wonder if insurance is causing the changes. To get my quotes, I have to put in my postcode and profession, so I assume it’s running a basic insurance check as part of the quote.

SWoll said:

Any idea what the termination terms are on your deal? i know some companies expect a significant payment from the driver if they decide to leave the company in the first year of the agreement etc?

Arval are pretty painful for us. In the first year it’s 6 months net payments, 3 months on the second year, and 1 month in the third year. Suffice to say, those who have changed employer whilst having a car have been asking their new employer for assistance getting out of it.

[CheesecakeRunner]

Cascade360 said:

Seems some cars are relatively cheap through Zenith (e.g. Taycan) but most seem to be deliberately priced to be just a bit cheaper than a private lease net, so very expensive gross.

Advantages - insurance and maintenance, no deposit.
Disadvantages - tax benefits could change and increase price (i think?), pension impact (reduces employer contributions i think?), can't get out of the contract.

Pension impact depends in your contract. My SS has no effect on my pension at all.

And getting out of a SS contract is neither here nor there really, as getting out of a personal lease also tends to be bloody expensive.

[anonymous-user]

Cascade360 said:

Harry Flashman said:

This all looks like bks. I would pay net, for an Ioniq 5 125kwh SE connect, £430.

Available for the same from leasing.com.

Only difference is that the salary sacrifice deal includes insurance, which will save 600quid or so a year here in London. So not worthless, but hardly a game changer.

Seems some cars are relatively cheap through Zenith (e.g. Taycan) but most seem to be deliberately priced to be just a bit cheaper than a private lease net, so very expensive gross.

Advantages - insurance and maintenance, no deposit.
Disadvantages - tax benefits could change and increase price (i think?), pension impact (reduces employer contributions i think?), can't get out of the contract.

Interesting you mention Taycan, any idea what a base spec Taycan CT costs on Zenith?

[plfrench]

NSS89 said:

Thoughts on the below through Zenith:

Tesla Model Y
£591pm
10k pa
36 months

I was going to go for the Model 3 but that’s now coming in at £550 but previously it was around £490 (not sure what’s changed)

What tax rate is that at? I'm showing £506.98 @40% Gross £825.59 Seems like I've got a pretty decent rate through my employer

[plfrench]

Harry Flashman said:

From Zenith,I would pay net, for an Ioniq 5 125kwh SE connect, £430.

Available for the same from leasing.com.

Difference is that the salary sacrifice deal includes insurance, servicing and maintemance, which will save 1000 quid or so a year here in London. So not worthless at all, but hardly a game changer.

That's on special offer at the moment for me on Zenith and coming out at £306.83 Net (40%) gross £497.89 for 3yrs 10k per year with no options.

[Puppisadeer]

My employer uses Zenith for SS. Termination fee is £250 (maybe +VAT, I can't recall) in the event of leaving employment 90 days onwards after delivery of car. Leaving before the 90 day period it's £250 + interest charges, but I'm not clear on how the interest is calculated.

There isn't really anything on there that stands out to me deal wise. I am tempted by an ID3, which comes to around £350 a month for 8000 miles/36 months in the Max pro performance trim (Inc. optional paint and 18 inch alloys), but I might just wait it out as there's a fair few new EV models being released in 2022.

Edited by Puppisadeer on Monday 22 November 20:59

[anonymous-user]

Puppisadeer said:

My employer uses Zenith for SS. Termination fee is £250 (maybe +VAT, I can't recall) in the event of leaving employment 90 days onwards after delivery of car. Leaving before the 90 day period it's £250 + interest charges, but I'm not clear on how the interest is calculated.

There isn't really anything on there that stands out to me deal wise. I am tempted by an ID3, which comes to around £350 a month for 8000 miles/36 months in the Max pro performance trim (Inc. optional paint and 18 inch alloys), but I might just wait it out as there's a fair few new EV models being released in 2022.

Edited by Puppisadeer on Monday 22 November 20:59

I think that’s the problem, not many of the current EVs are that attractive and I feel a bit like that I’m looking at the Zenith scheme just cos it may be cost effective.

However I’m not willing to take on a car that I don’t like no matter how cheap therefore I’ve whittled down my list to what I consider to be two of the more normal looking models (i4 and Taycan).

Without having prices yet I change my mind hourly! Talked myself out of an EV altogether earlier but also keep going on the i4 and Taycan configurators!

[Cascade360]

zj2016 said:

Interesting you mention Taycan, any idea what a base spec Taycan CT costs on Zenith?

Sorry I said Taycan I meant Audi Etron. Taycan not available...

[Harry Flashman]

The thing is, our EV is an appliance, a town runabout rather than a fun car, and also the only car I have ever leased, as I like the idea of handing this tech back as it matures and newer versions come on stream.

So this would make sense to me if the deals are good but my Leaf is about 230 a month all in if I include service costs and insurance, so not much on Zenith that really grabs me.

[NSS89]

plfrench said:

What tax rate is that at? I'm showing £506.98 @40% Gross £825.59 Seems like I've got a pretty decent rate through my employer

Yeah I see that but I’m 20%. I’m not sure if I should wait and see if the Model 3 drops back down in price or just go for the Y. First time I’ve had access to a SS (Zenith) so no idea how often the prices change.

[SWoll]

Harry Flashman said:

The thing is, our EV is an appliance, a town runabout rather than a fun car, and also the only car I have ever leased, as I like the idea of handing this tech back as it matures and newer versions come on stream.

So this would make sense to me if the deals are good but my Leaf is about 230 a month all in if I include service costs and insurance, so not much on Zenith that really grabs me.

The question is what would your Leaf cost today in comparison? The cost of the EV we leased in 2019 had increased dramatically when we came to look for a replacement recently. I don't imagine the Leaf will be as bad but I'd expect a decent jump in cost all the same?

NSS89 said:

Yeah I see that but I’m 20%. I’m not sure if I should wait and see if the Model 3 drops back down in price or just go for the Y. First time I’ve had access to a SS (Zenith) so no idea how often the prices change.

Are the costs both for the LR model as there's no SR+ available in the Model Y?

Edited by SWoll on Tuesday 23 November 08:00

[Harry Flashman]

Good point.

[anonymous-user]

I’ve now got access to Zenith, lots of choice, the highlights for a 40% tax payer:

I4 M50 with upgraded alloys - £593 pm

Etron 50 Black edition with c&s - £591 pm

Taycan CT 4 with £3k of options - £723 pm

Q4 Edition 1 with c&s and tech pack - £490pm

All based upon 10,000 miles and 3 years

No work done this morning as I try and man math my way into tue Taycan!

[Cascade360]

zj2016 said:

I’ve now got access to Zenith, lots of choice, the highlights for a 40% tax payer:

I4 M50 with upgraded alloys - £593 pm

Etron 50 Black edition with c&s - £591 pm

Taycan CT 4 with £3k of options - £723 pm

Q4 Edition 1 with c&s and tech pack - £490pm

All based upon 10,000 miles and 3 years

No work done this morning as I try and man math my way into tue Taycan!

Why is mine so expensive, and no Taycan as an option!?