New lease car scheme through work....

[dave_s13]

Just pondering a new scheme that's croppped up at work and wonder if anyone has heard of/used it or has any gems of info for me. It's a salary sacrarfice scheme so the monthly payment comes out of your wage before tax and stuff....and they reckon it's cheap as you like - CPCDrive is the company administering the scheme.

We may be looking to get something small and cheap and it seems you can get something like the following:-

CITROEN C1 HATCHBACK 1.0i VTR 3dr [AC] £168.01
FIAT 500 HATCHBACK 1.2 Sport 3dr [Start Stop] £225.33

You get the idea. The bold figure is the total monthly payment and includes tax, insurance, maintenance (inc tyres).

Also, as far as I can see there is no upfront payment to make.

Seems cheap, is it too good to be true?

[FlashmanChop]

thought a 500 would be cheaper as better residuals?

[dave_s13]

There is a slightly chaper one

FIAT 500 HATCHBACK 1.2 Pop 3dr [Start Stop] £200.81

It seems logical to me that the 500 is a bit more. The C1 is a much cheaper car to buy (I think).

[Motorrad]

Of those two I'd choose the C1, having been in the UK for a month earlier this year it seems that the 500 is mostly driven by estate agents and mental women who don't know how to indicate, use roundabouts and do 40 everwhere regardless of any actual limit (this based on the 2 nutjobs I know who own them )

[RenesisEvo]

dave_s13 said:

Seems cheap, is it too good to be true?

I take it you give the car back after an amount of time? In my mind yes - paying out money you'll never see again for a car you'll never own. Is it cheaper than other similar deals around - no idea.

[wolves_wanderer]

RenesisEvo said:

dave_s13 said:

Seems cheap, is it too good to be true?

I take it you give the car back after an amount of time? In my mind yes - paying out money you'll never see again for a car you'll never own. Is it cheaper than other similar deals around - no idea.

Every time you buy a car you pay out money that you'll never see again. This seems like a reasonable deal for the car-as-whitegood types who will never have any unexpected costs during their time with the car.

[sjg]

Not bad if it's insured and maintained - Lings does a 2 year (3+23) on the C1 at £132 a month. If you've got a reasonable record and some NCB it may be cheaper to do it yourself - it's not like they'll cost much to maintain in the first few years. Fiat 500 1.2 Pop is £173 a month, but on a 3+35.

You'll have to work out for yourself how much of your pre-tax salary that would equate to, and watch out for it being a taxable benefit (other salary sacrifice schemes like cycle to work leave you liable for that).

[dave_s13]

sjg said:

Not bad if it's insured and maintained - Lings does a 2 year (3+23) on the C1 at £132 a month. If you've got a reasonable record and some NCB it may be cheaper to do it yourself - it's not like they'll cost much to maintain in the first few years. Fiat 500 1.2 Pop is £173 a month, but on a 3+35.

You'll have to work out for yourself how much of your pre-tax salary that would equate to, and watch out for it being a taxable benefit (other salary sacrifice schemes like cycle to work leave you liable for that).

That's business lease though. I would be personal which is just over £200 and doesn't include insurance or maintenance. Unless I've missed something!

Re the comment about paying out for something you don't own.

I've alway had private cars and the 2 I have now are bought and paid for; If you factor in purchase price, maintenance, insurance and depreciation and split that over the amount of months you owned the car it will come to a figure that's probably in a similar ball park to the one listed above....probably

Depreciation is the killer really. If I added that up over the cars I've owned it would be A LOT!

I'm still very much undecided about it though, I might just stick to what I know.

[Colonial]

I'm on a similar scheme here in oz. Works well for me. Fully maintained and insured golf r for 120 quid a week after tax. Yeah i don't own it as such but i still get to drive and enjoy it. If it makes sense do it.

[insideline]

Hi

The company behind this scheme are Tusker Direct a leasing company who have launched a number of similar schemes over the last couple of years.

I would advise reading the FAQ page https://www.cpcdrive.nhs.uk/?p=faq and compare closely the costs they quote to a regular PCP profile from a broker or dealer you may find the difference is not as much as the Salary Sacrifice people suggest.

Bear in mind with PCP you will have more consumer rights during the agreement as well as better options at the end of term.

[dave_s13]

Thanks for that but I was hoping you lot would do all the work for me

Can you explain a bit more about how my consumer rights would be better served elsewhere and also the other bit, at the end of the lease. What's the worst that could happen?

[lauda]

Although the cost of the car will be deducted from your salary before tax/NI, you will still be liable for tax on a benefit in kind. You might want to use the calculator below to work out the additional cost:

http://www.hmrc.gov.uk/calcs/cars.htm

[dave_s13]

lauda said:

Although the cost of the car will be deducted from your salary before tax/NI, you will still be liable for tax on a benefit in kind. You might want to use the calculator below to work out the additional cost:

http://www.hmrc.gov.uk/calcs/cars.htm

??????? includes that doesn't it??

[lauda]

dave_s13 said:

??????? includes that doesn't it??

You're right, looks like those prices include the BIK tax, although best to make sure it's correct based on whether you're a 20% of 40% taxpayer.