Personal Lease vs Salary Sacrifice
Discussion
I'm very interested in leasing an EV as 90% of my driving is short distance and I'm prepared to cough up for my own charger.
Anyway, I've been comparing cost of a Personal Lease against the cost of leasing through the Octopus Salary Sacrifice Scheme they have at my workplace
For the vehicle I'm considering it is £297 per month less for the personal lease compared to the salary sacrifice deal on a 24 month contract with 10,000 mile p.a. The Octopus deal includes insurance/service/tyres and a 'free charger' but this doesn't seem to justify the £7,000 + price difference. I'm pretty sure I won't need tyres, will only need one service over this period and can almost certainly get source my own insurance for way less
Am I missing something or should I grab the personal lease deal?
P.S I also favour the indepence of not linking a lease to my employer, just in case...
Anyway, I've been comparing cost of a Personal Lease against the cost of leasing through the Octopus Salary Sacrifice Scheme they have at my workplace
For the vehicle I'm considering it is £297 per month less for the personal lease compared to the salary sacrifice deal on a 24 month contract with 10,000 mile p.a. The Octopus deal includes insurance/service/tyres and a 'free charger' but this doesn't seem to justify the £7,000 + price difference. I'm pretty sure I won't need tyres, will only need one service over this period and can almost certainly get source my own insurance for way less
Am I missing something or should I grab the personal lease deal?
P.S I also favour the indepence of not linking a lease to my employer, just in case...
The cost of a SS vehicle is down to your tax circumstances, but for a 40% or above tax payer they are usually cheaper or at least comparible with a personal lease. Confirm the cost you are comparing is the NET cost to you and not the GROSS cost before tax savings are included.I
24 months deals are often a lot more expensive than 36 or 48 months for obvious reasons.
Unlike a personal lease SS usually comes with termination insurance built in so should you be made redundant or move jobs you wouldn't be left with a car payment you don't want.
24 months deals are often a lot more expensive than 36 or 48 months for obvious reasons.
Unlike a personal lease SS usually comes with termination insurance built in so should you be made redundant or move jobs you wouldn't be left with a car payment you don't want.
I’d get a few insurance quotes too as it might be quite a bit more than you bargained for.
I’ve an Octopus SS ID.3 with free charger on a 3 year term and nett it costs me £290 per month, very happy with the scheme and not sure I could have done it cheaper when all items accounted for in the monthly figure.
PS taking a chunk of tax away from Thievin’ Reeves is also quite a motivating factor!
I’ve an Octopus SS ID.3 with free charger on a 3 year term and nett it costs me £290 per month, very happy with the scheme and not sure I could have done it cheaper when all items accounted for in the monthly figure.
PS taking a chunk of tax away from Thievin’ Reeves is also quite a motivating factor!
Nick Forest said:
PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
You’d rather it went to Octopus’s bottom line it than pay for hospitals, schools etc?Salary sacrifice firms are ripping the arse out of these deals. Have a look at Tusker’s accounts.
Sheepshanks said:
Nick Forest said:
PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
You d rather it went to Octopus s bottom line it than pay for hospitals, schools etc?Salary sacrifice firms are ripping the arse out of these deals. Have a look at Tusker s accounts.
Reeves will just spunk any additional taxes on vanity/doomed projects.
I’ve no problem with Octopus, they pay U.K. corporate taxes and support the growth of alternative energy solutions…
Nick Forest said:
I d get a few insurance quotes too as it might be quite a bit more than you bargained for.
I ve an Octopus SS ID.3 with free charger on a 3 year term and nett it costs me £290 per month, very happy with the scheme and not sure I could have done it cheaper when all items accounted for in the monthly figure.
PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I’m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn’t be too high either.I ve an Octopus SS ID.3 with free charger on a 3 year term and nett it costs me £290 per month, very happy with the scheme and not sure I could have done it cheaper when all items accounted for in the monthly figure.
PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
To me, it looks like Octopus are taking a hefty margin on these deals. I’ve got a call with one of their agents later, so I’ll see what they say and report back.
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.
To me, it looks like Octopus are taking a hefty margin on these deals. I ve got a call with one of their agents later, so I ll see what they say and report back.
£645 a month for an ID3? To me, it looks like Octopus are taking a hefty margin on these deals. I ve got a call with one of their agents later, so I ll see what they say and report back.
Have you looked at other vehicles and longer term deals? Could just be that model on those terms is ridiculous.
CutiRomero said:
Nick Forest said:
I d get a few insurance quotes too as it might be quite a bit more than you bargained for.
I ve an Octopus SS ID.3 with free charger on a 3 year term and nett it costs me £290 per month, very happy with the scheme and not sure I could have done it cheaper when all items accounted for in the monthly figure.
PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.I ve an Octopus SS ID.3 with free charger on a 3 year term and nett it costs me £290 per month, very happy with the scheme and not sure I could have done it cheaper when all items accounted for in the monthly figure.
PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
To me, it looks like Octopus are taking a hefty margin on these deals. I ve got a call with one of their agents later, so I ll see what they say and report back.
It's clearly not worth it at that price.
Edit. And she's only a 20% tax payer.
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.
To me, it looks like Octopus are taking a hefty margin on these deals. I ve got a call with one of their agents later, so I ll see what they say and report back.
What’s the gross figure? Because that’s what Octopus are getting.To me, it looks like Octopus are taking a hefty margin on these deals. I ve got a call with one of their agents later, so I ll see what they say and report back.
Normally these deals are constructed so that it very slightly makes sense to go for them vs personal lease. The SS company aims to retain as much margin as possible, not do you a good deal.
There’s a bit of an outcry building over SS - if it makes sense for you then grab it while you can.
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