Why are these salary sacrifice quotes so high?
Discussion
I'm looking for a little runaround for my wife. Her only stipulations are that she wants an automatic that doesn't feel like a 'downgrade' from her 2006 Honda Civic EX 'when you sit in it'.
Anyway, one option is to take the plunge into leasing, so I looked to see if there anything through work. Seems that we have a salary sacrifice scheme through Tusker where you can lease a car, including insurance and maintenance costs, pre-tax. If you get an electric vehicle then your BIK costs are very tiny.
On the Tusker site the illustrative candidate they use is 40 years old, mileage of 5kpa, 48 month lease, 40% taxpayer, and low crime postcode. I match those criteria exactly apart from I am 44. When you log on to the site they give 'from...' costs for each car, but when I click into a car and it recalculates for a personal quote the price increases massively.
For example: a Nissan Leaf, 'from £156pm'. When I click in and they 'personalise' my quote, it's coming up as £240pm. That's with the cheapest trim, no added extras, 48 month lease (which we wouldn't get, but I'm using for these costings), and 5k miles. The gross cost taken from wages before tax is £396pm, but with the tax and NI saving the net cost is £240pm. Whatever I do with the specs, trim, term, or even my salary, I can't get it cheaper than that.
Another one: VW ID.3, 'from £191pm, actual quote £275. Wildly different.
This happens on every single car. Normally I would take the 'from' prices with a pinch of salt, but I literally match the profile of the illustration. Million years NCD. Very cheap to insure, etc.. etc.
What's going on here? Are Tusker just really pricey? Does anyone else have the same issue when they get quotes through salary sacrifice schemes? What am I missing?
Anyway, one option is to take the plunge into leasing, so I looked to see if there anything through work. Seems that we have a salary sacrifice scheme through Tusker where you can lease a car, including insurance and maintenance costs, pre-tax. If you get an electric vehicle then your BIK costs are very tiny.
On the Tusker site the illustrative candidate they use is 40 years old, mileage of 5kpa, 48 month lease, 40% taxpayer, and low crime postcode. I match those criteria exactly apart from I am 44. When you log on to the site they give 'from...' costs for each car, but when I click into a car and it recalculates for a personal quote the price increases massively.
For example: a Nissan Leaf, 'from £156pm'. When I click in and they 'personalise' my quote, it's coming up as £240pm. That's with the cheapest trim, no added extras, 48 month lease (which we wouldn't get, but I'm using for these costings), and 5k miles. The gross cost taken from wages before tax is £396pm, but with the tax and NI saving the net cost is £240pm. Whatever I do with the specs, trim, term, or even my salary, I can't get it cheaper than that.
Another one: VW ID.3, 'from £191pm, actual quote £275. Wildly different.
This happens on every single car. Normally I would take the 'from' prices with a pinch of salt, but I literally match the profile of the illustration. Million years NCD. Very cheap to insure, etc.. etc.
What's going on here? Are Tusker just really pricey? Does anyone else have the same issue when they get quotes through salary sacrifice schemes? What am I missing?
You can get a Leaf for £224 a month without having to get involved with salary sacrifice.
https://www.leaseloco.com/car-leasing/nissan/leaf/...
https://www.leaseloco.com/car-leasing/nissan/leaf/...
Gareth1974 said:
You can get a Leaf for £224 a month without having to get involved with salary sacrifice.
https://www.leaseloco.com/car-leasing/nissan/leaf/...
Right. Exactly. That's why I feel like I am going mad because the salary sacrifice programme should, in theory, be a lot cheaper?https://www.leaseloco.com/car-leasing/nissan/leaf/...
Gareth1974 said:
You can get a Leaf for £224 a month without having to get involved with salary sacrifice.
https://www.leaseloco.com/car-leasing/nissan/leaf/...
Does that include insurance, tyres, servicing and breakdown cover ?https://www.leaseloco.com/car-leasing/nissan/leaf/...
Gareth1974 said:
You can get a Leaf for £224 a month without having to get involved with salary sacrifice.
https://www.leaseloco.com/car-leasing/nissan/leaf/...
Tha figure will come from net salaryhttps://www.leaseloco.com/car-leasing/nissan/leaf/...
You can lease the Leaf for ~£230/month for that criteria, so it sounds like you're getting maintenance and insurance for £10/month. Yes it might not be as much of a saving as your expected but it's still a cheap deal.
Sorry if I misread but you're also not having to put a deposit down there? So that's another addition to the savings.
Sorry if I misread but you're also not having to put a deposit down there? So that's another addition to the savings.
alfaeejit said:
Same here - I'm pretty similar to the example profile but quotes are a fair chunk higher. Struggling to find anything that looks good value, especially when you factor in the pension hit. Do they come along with special offers every so often? I've only just registered with them.
Really interesting that you're having the same experience. Going to attempt to call them today to see what's up.Inevitably the companies running those lease deals will not be the cheapest, i.e. you're never going to effectively get 40% off the cheapest deal you can find on leaseloco, but it sounds like after sacrifice they're pretty reasonable.
One thing to watch is what happens if you leave the job? Need to pay full price for the remainder of the term?
One thing to watch is what happens if you leave the job? Need to pay full price for the remainder of the term?
GreatGranny said:
£275 pcm for an ID3 including insurance and maintenance seems pretty cheap to me.
Normal leasing will be about the same for just the car.
Yeah. It's a fair point. I think what irks me is that the landing page shows multiple cars under £200pm, but actually those offers are simply not available, If I match their 'average' person and I am not getting anywhere near the deals they advertise, then who is?Normal leasing will be about the same for just the car.
rsbmw said:
Inevitably the companies running those lease deals will not be the cheapest, i.e. you're never going to effectively get 40% off the cheapest deal you can find on leaseloco, but it sounds like after sacrifice they're pretty reasonable.
One thing to watch is what happens if you leave the job? Need to pay full price for the remainder of the term?
Yes. Good point. Will definitely look into that if I go for one. One thing to watch is what happens if you leave the job? Need to pay full price for the remainder of the term?
KayCeeWho said:
I'm looking for a little runaround for my wife. Her only stipulations are that she wants an automatic that doesn't feel like a 'downgrade' from her 2006 Honda Civic EX 'when you sit in it'.
Anyway, one option is to take the plunge into leasing, so I looked to see if there anything through work. Seems that we have a salary sacrifice scheme through Tusker where you can lease a car, including insurance and maintenance costs, pre-tax. If you get an electric vehicle then your BIK costs are very tiny.
On the Tusker site the illustrative candidate they use is 40 years old, mileage of 5kpa, 48 month lease, 40% taxpayer, and low crime postcode. I match those criteria exactly apart from I am 44. When you log on to the site they give 'from...' costs for each car, but when I click into a car and it recalculates for a personal quote the price increases massively.
For example: a Nissan Leaf, 'from £156pm'. When I click in and they 'personalise' my quote, it's coming up as £240pm. That's with the cheapest trim, no added extras, 48 month lease (which we wouldn't get, but I'm using for these costings), and 5k miles. The gross cost taken from wages before tax is £396pm, but with the tax and NI saving the net cost is £240pm. Whatever I do with the specs, trim, term, or even my salary, I can't get it cheaper than that.
Another one: VW ID.3, 'from £191pm, actual quote £275. Wildly different.
This happens on every single car. Normally I would take the 'from' prices with a pinch of salt, but I literally match the profile of the illustration. Million years NCD. Very cheap to insure, etc.. etc.
What's going on here? Are Tusker just really pricey? Does anyone else have the same issue when they get quotes through salary sacrifice schemes? What am I missing?
Is your wife paying into a workplace pension (i.e. NHS Pension). If not that will affect quote as the headline figure is assuming the person being in a pension scheme. Anyway, one option is to take the plunge into leasing, so I looked to see if there anything through work. Seems that we have a salary sacrifice scheme through Tusker where you can lease a car, including insurance and maintenance costs, pre-tax. If you get an electric vehicle then your BIK costs are very tiny.
On the Tusker site the illustrative candidate they use is 40 years old, mileage of 5kpa, 48 month lease, 40% taxpayer, and low crime postcode. I match those criteria exactly apart from I am 44. When you log on to the site they give 'from...' costs for each car, but when I click into a car and it recalculates for a personal quote the price increases massively.
For example: a Nissan Leaf, 'from £156pm'. When I click in and they 'personalise' my quote, it's coming up as £240pm. That's with the cheapest trim, no added extras, 48 month lease (which we wouldn't get, but I'm using for these costings), and 5k miles. The gross cost taken from wages before tax is £396pm, but with the tax and NI saving the net cost is £240pm. Whatever I do with the specs, trim, term, or even my salary, I can't get it cheaper than that.
Another one: VW ID.3, 'from £191pm, actual quote £275. Wildly different.
This happens on every single car. Normally I would take the 'from' prices with a pinch of salt, but I literally match the profile of the illustration. Million years NCD. Very cheap to insure, etc.. etc.
What's going on here? Are Tusker just really pricey? Does anyone else have the same issue when they get quotes through salary sacrifice schemes? What am I missing?
Watch the change in salary sacrifice rules & run some figures as to whether it is really worthwhile - each case is different. Pendragon have set out the changes quite well at https://www.pendragonvehiclemanagement.co.uk/news/...
It may not be as clear cut as it was a year ago - HMRC has clearly caught on! There are still NI savings for you - but if you earn more than £50k or are a powerfully built PH director/shareholder of your own company these will be minimal
It may not be as clear cut as it was a year ago - HMRC has clearly caught on! There are still NI savings for you - but if you earn more than £50k or are a powerfully built PH director/shareholder of your own company these will be minimal
Sortie 10 said:
Watch the change in salary sacrifice rules & run some figures as to whether it is really worthwhile - each case is different. Pendragon have set out the changes quite well at https://www.pendragonvehiclemanagement.co.uk/news/...
It may not be as clear cut as it was a year ago - HMRC has clearly caught on! There are still NI savings for you - but if you earn more than £50k or are a powerfully built PH director/shareholder of your own company these will be minimal
Utter rubbish!It may not be as clear cut as it was a year ago - HMRC has clearly caught on! There are still NI savings for you - but if you earn more than £50k or are a powerfully built PH director/shareholder of your own company these will be minimal
If you want an ultra low emission or electric car, salary sacrifice is an extremely cost effective way to acquire one and the tax benefit only increases the more you earn. Yes, I have an electric car through a salary sacrifice car scheme.
There is no single funding method that is "best" for everyone, they all have their place but let's not bad mouth different methods without understanding how they actually work.
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