Arval company car scheme
Discussion
I'm due to start a new role soon which comes with the option of a company car. Technically it's a salary sacrifice subsidised lease scheme using Arval
Has anyone got experience of this and how it works? My miles is between 20 to 30k a year but can and will drop significantly after a year.
I'm particularly interested in an EV option
Any advice greatly received
Has anyone got experience of this and how it works? My miles is between 20 to 30k a year but can and will drop significantly after a year.
I'm particularly interested in an EV option
Any advice greatly received
My experience of such schemes is that you will be able to choose a car from the arval list. There may be company rules around the type of car you can and can’t have and there may be a limit on the monthly cost.
The cost for this car is made on salary sacrifice which means you pay before tax. It also means you will have to pay tax for benefit of kind of having the car. This BIK tax is based on the list price, CO2 and fuel type of the chosen vehicle. Look at Comcar website to work out what the tax would be for a particular car. The tax on EVs is very low over the next few years but if the BIK tax is less than the tax you would have paid on the salary sacrifice amount then your tax bill will be the higher amount.
The cost for this car is made on salary sacrifice which means you pay before tax. It also means you will have to pay tax for benefit of kind of having the car. This BIK tax is based on the list price, CO2 and fuel type of the chosen vehicle. Look at Comcar website to work out what the tax would be for a particular car. The tax on EVs is very low over the next few years but if the BIK tax is less than the tax you would have paid on the salary sacrifice amount then your tax bill will be the higher amount.
My company uses them. I'm awaiting my leaf 62+ to be delivered.
I get £600 per month. My scheme means I get the car, insurance, maintenance and consumables .
Upshot is I'm putting in another £40 per month to uplift my allowance for the car. Not to bad. A Tesla M3 would of been c.£300 extra.
I get £600 per month. My scheme means I get the car, insurance, maintenance and consumables .
Upshot is I'm putting in another £40 per month to uplift my allowance for the car. Not to bad. A Tesla M3 would of been c.£300 extra.
Haha yep. So the consumer PCP with £1000 in and haggling factor saw a £36k come in just under £525 per month. Then I'd have to put insurance, servicing and tyres aside so let's say that's another £130.
The ownership is all on me then, if I leave my company I have to keep a Leaf........ this way it's all sorted can do silly mileage without consequence and just hand back when I hit 60k miles ( I'll do that in just over 2 years)
The ownership is all on me then, if I leave my company I have to keep a Leaf........ this way it's all sorted can do silly mileage without consequence and just hand back when I hit 60k miles ( I'll do that in just over 2 years)
CooperS said:
My company uses them. I'm awaiting my leaf 62+ to be delivered.
I get £600 per month. My scheme means I get the car, insurance, maintenance and consumables .
Upshot is I'm putting in another £40 per month to uplift my allowance for the car. Not to bad. A Tesla M3 would of been c.£300 extra.
Not sure I understand this? Do you have to use all the £600 on a car, because surely paying £640 (with the stuff included above) is an incredibly terrible deal? Surely there are much better options to use your car scheme allowance or do you have to use Arval?I get £600 per month. My scheme means I get the car, insurance, maintenance and consumables .
Upshot is I'm putting in another £40 per month to uplift my allowance for the car. Not to bad. A Tesla M3 would of been c.£300 extra.
BopoWarls said:
CooperS said:
My company uses them. I'm awaiting my leaf 62+ to be delivered.
I get £600 per month. My scheme means I get the car, insurance, maintenance and consumables .
Upshot is I'm putting in another £40 per month to uplift my allowance for the car. Not to bad. A Tesla M3 would of been c.£300 extra.
Not sure I understand this? Do you have to use all the £600 on a car, because surely paying £640 (with the stuff included above) is an incredibly terrible deal? Surely there are much better options to use your car scheme allowance or do you have to use Arval?I get £600 per month. My scheme means I get the car, insurance, maintenance and consumables .
Upshot is I'm putting in another £40 per month to uplift my allowance for the car. Not to bad. A Tesla M3 would of been c.£300 extra.
Even looked into these on the scheme but BIK is not kind on the lotus and the mx5 isn't as cheap as I want it when second hand a latest gen is c.£12k. plus it would kill me drive a lotus 120 motorway miles a day (did 40 for a time between Edinburgh and Glasgow).
Btw I don't have to use all of the money but get something cheaper like a Focus or Astra (even a fiesta) and you don't see much money come back and what you do will be taken up by hefty BIK unless you get a hybrid.
Tbh the Nissan is (but I think shouldn't be) a £36k car where I can do unlimited mileage and have all servicables paid and the way I look at it. Am I happy to pay £340 per month for a white goods car which will be used for everything..... Yep happy. Would I like my wife to green light the E-tron at an additional £460 maybe but then it's in effect me paying £760 to drive to work and I'm not that bothered.
I have an i3 company car through Arval, I give up some of my car cash allowance so effectively salary sacrifice but doesn't impact salary related benefits like pension, death in service etc.
From April when the car tax on electric vehicles drops to 0%, it will cost me £300 a month in lost net pay. That's fully funded (serviceing, tyres, insurance etc), unlimited mileage. Until then I have to pay a hefty amount of tax each month on top.
The comment above about optional remuneration rules is a good point, but actually EVs are exempt from those rules I believe, so there is a real tax advantage to EVs (from April)
From April when the car tax on electric vehicles drops to 0%, it will cost me £300 a month in lost net pay. That's fully funded (serviceing, tyres, insurance etc), unlimited mileage. Until then I have to pay a hefty amount of tax each month on top.
The comment above about optional remuneration rules is a good point, but actually EVs are exempt from those rules I believe, so there is a real tax advantage to EVs (from April)
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