Salary Sacrifice for an EV - Idiots guide available?
Discussion
As one of the fleet of Chez Jenny is due to be replaced in the latter half of the year, I could really benefit from some pointers.
The better half has the opportunity to particpate in a salary sacrifice scheme.
No information available yet apart from "Register your interest"
Anyone been through this process, benefits, pitfalls etc
Recommended vehicles. ( Although right now - I'm struggling to see past Tesla )
Thanks in advance
Toodle Pip
The better half has the opportunity to particpate in a salary sacrifice scheme.
No information available yet apart from "Register your interest"
Anyone been through this process, benefits, pitfalls etc
Recommended vehicles. ( Although right now - I'm struggling to see past Tesla )
Thanks in advance
Toodle Pip
The main pitfall is that on some schemes it may affect pension contributions - your OH should ask their employer.
Also make sure the terms of what happens in the case of resignation or redundancy are explained. Most schemes include insurance to cover this, but some employers have been known to ditch that and use the payments to cancel the lease as an “incentive” for staff to stay.
Other than that it’s just a case of doing the sums - some of the lease schemes aren’t very competitive so you end up making a big tax saving on an overpriced lease which therefore doesn’t end up saving you as much as you’d expect. BIK rates are an unknown for the 2025 tax year, but most people expect a relatively small increase.
Watch out for long lead times, high demand and component supply issues mean you could easily be waiting six months plus for a car.
Also make sure the terms of what happens in the case of resignation or redundancy are explained. Most schemes include insurance to cover this, but some employers have been known to ditch that and use the payments to cancel the lease as an “incentive” for staff to stay.
Other than that it’s just a case of doing the sums - some of the lease schemes aren’t very competitive so you end up making a big tax saving on an overpriced lease which therefore doesn’t end up saving you as much as you’d expect. BIK rates are an unknown for the 2025 tax year, but most people expect a relatively small increase.
Watch out for long lead times, high demand and component supply issues mean you could easily be waiting six months plus for a car.
JAMSXR said:
This is obvious but validate the rates VS what’s available as a consumer. My company use Tusker and they were hardly any cheaper compared to a personal lease. I’ve also heard Zenith are expensive.
A large part of that is going to depend on the tax bracket of the person in question, but 100% many SS companies are price gouging in the knowledge they can get away with it. I've seen £1100 gross quotes on a 4 year Model Y LR SS deal that would cost £650 a month on a personal lease as an example. That's £53k over the term, or 95% of the list price of the car. 
SWoll said:
JAMSXR said:
This is obvious but validate the rates VS what’s available as a consumer. My company use Tusker and they were hardly any cheaper compared to a personal lease. I’ve also heard Zenith are expensive.
A large part of that is going to depend on the tax bracket of the person in question, but 100% many SS companies are price gouging in the knowledge they can get away with it. I've seen £1100 gross quotes on a 4 year Model Y LR SS deal that would cost £650 a month on a personal lease as an example. That's £53k over the term, or 95% of the list price of the car. Doesn't the Tusker deal include insurance and maintenance though, as well as the ability to exit the lease at any time if you change jobs? Are you factoring that in to the personal lease quotes? Some of the savings also depend on what deal your company was able to do and whether they are passing on the NI savings they will make or not.
I do definitely agree that there is some price gouging going on "because we can" but it's important to compare like for like. Our scheme apparently starts in June, it will be interesting to see how good/bad/indifferent it is.
I do definitely agree that there is some price gouging going on "because we can" but it's important to compare like for like. Our scheme apparently starts in June, it will be interesting to see how good/bad/indifferent it is.
charltjr said:
Doesn't the Tusker deal include insurance and maintenance though, as well as the ability to exit the lease at any time if you change jobs? Are you factoring that in to the personal lease quotes? Some of the savings also depend on what deal your company was able to do and whether they are passing on the NI savings they will make or not.
I do definitely agree that there is some price gouging going on "because we can" but it's important to compare like for like.
Yes, Tusker's price includes insurance and maintenance, which I have factored into my calculations to arrive at a "marginally" better deal with Tusker. On the maintenance side of things, the Polestar comes with 3 years free servicing and breakdown cover, so I'd effectively be paying a premium to Tusker for something that I don't need. I have also factored in a pair new front tyres into my calculations.I do definitely agree that there is some price gouging going on "because we can" but it's important to compare like for like.
Leaving the company isn't an issue for me. I have no plans to leave (been there 12 years and retiring in 5), and I've enjoyed working there more than anywhere else in my career. That said, if I were on a personal lease and moved jobs I'd keep making the payments as I'd still need a car.
So, they are still price gouging when everything else is factored into it.
I’ve got an i4 M50 on order at £600ish a month net on a 3 year lease at 12,000 per annum.
This thread intrigued me to check the personal lease price as a comparison.
A quick look on leasing.com shows that on a 1+35 12,000 miles Pa deal the price is £1,047 per month with no options.
I’ve got about £3,000 of options so for me the SS is a no brainer.
This thread intrigued me to check the personal lease price as a comparison.
A quick look on leasing.com shows that on a 1+35 12,000 miles Pa deal the price is £1,047 per month with no options.
I’ve got about £3,000 of options so for me the SS is a no brainer.
zj2016 said:
I’ve got an i4 M50 on order at £600ish a month net on a 3 year lease at 12,000 per annum.
This thread intrigued me to check the personal lease price as a comparison.
A quick look on leasing.com shows that on a 1+35 12,000 miles Pa deal the price is £1,047 per month with no options.
I’ve got about £3,000 of options so for me the SS is a no brainer.
But what are the SS firm charging gross and what is your tax bracket? This thread intrigued me to check the personal lease price as a comparison.
A quick look on leasing.com shows that on a 1+35 12,000 miles Pa deal the price is £1,047 per month with no options.
I’ve got about £3,000 of options so for me the SS is a no brainer.
i4 M50 prices have rocketed recently, £1047 a month for a car costing £64k is ridiculous as that's 60%+ over 3 years. A more expensive Model Y Performance can be had for around £900 on those terms so < 50%. An £85k Taycan 4S is only £100 a month more at <£1200.
Looked a bargain at launch, far from it at the minute.
maz8062 said:
The only thing I’d caution against is if using the car for business mileage. It’s a scam.
I got a BMW I3s as a company car. It costs £100 per month in BIC and upgrade costs and is free to go in central London, but at 4p per mile it’s a loss leader for my pocket. Good car though.
And that's for a very efficient EV. Something like an i4 M50 at < 2.5 miles/kWh could be costing 10p a mile or more with current electricity pricing dependent on tariff.I got a BMW I3s as a company car. It costs £100 per month in BIC and upgrade costs and is free to go in central London, but at 4p per mile it’s a loss leader for my pocket. Good car though.
SWoll said:
But what are the SS firm charging gross and what is your tax bracket?
i4 M50 prices have rocketed recently, £1047 a month for a car costing £64k is ridiculous as that's 60%+ over 3 years. A more expensive Model Y Performance can be had for around £900 on those terms so < 50%. An £85k Taycan 4S is only £100 a month more at <£1200.
Looked a bargain at launch, far from it at the minute.
Gross is £1007 I’m a 40% tax payer. Net is £614 versus a personal lease at £1047 plus deposit, maintenance and insurance i4 M50 prices have rocketed recently, £1047 a month for a car costing £64k is ridiculous as that's 60%+ over 3 years. A more expensive Model Y Performance can be had for around £900 on those terms so < 50%. An £85k Taycan 4S is only £100 a month more at <£1200.
Looked a bargain at launch, far from it at the minute.
zj2016 said:
SWoll said:
But what are the SS firm charging gross and what is your tax bracket?
i4 M50 prices have rocketed recently, £1047 a month for a car costing £64k is ridiculous as that's 60%+ over 3 years. A more expensive Model Y Performance can be had for around £900 on those terms so < 50%. An £85k Taycan 4S is only £100 a month more at <£1200.
Looked a bargain at launch, far from it at the minute.
Gross is £1007 I’m a 40% tax payer. Net is £614 versus a personal lease at £1047 plus deposit, maintenance and insurance i4 M50 prices have rocketed recently, £1047 a month for a car costing £64k is ridiculous as that's 60%+ over 3 years. A more expensive Model Y Performance can be had for around £900 on those terms so < 50%. An £85k Taycan 4S is only £100 a month more at <£1200.
Looked a bargain at launch, far from it at the minute.
They've definitely jumped by £150-200 in the past few months, be interesting to see what an SS quote is today as I'd be willing to bet it's a lot higher than £1007?
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