Buying a Tesla
Discussion
To cut a long story short, I have just sold my car to my old car insurance company for £8k and I need a new car.
Iv always had second cars and paid for them in cash. However, my husband drives a 46 mile each way commute to work 3x per week and it looks like we could save quite a bit by going from a diesel to an electric. We are thinking the tesla model 3 is maybe a good option.
Are we better buying the tesla with a bank loan of between £30 - £35k which seems like a lot.
Or, can anyone give any advice on how the salary sacrifice options work and what companies employers can offer this via? Also if you go down this route, can you buy the car at the end of the lease term?
We are in Scotland so my husband pays 41% tax so the salary sacrifice option could be beneficial. His work is quite small so they have said they are prepared to consider a request to set it up for him if he gives all the details on what to do. If you can't own the car at the end, we would probably prefer to buy ourselves. If we pay the load off in 4 years, we will have another 5 years at least without car payments. For any longer journeys, my husband will still have his diesel.
Any advice? Are we mad to be thinking about borrowing so much? Thank you!
Iv always had second cars and paid for them in cash. However, my husband drives a 46 mile each way commute to work 3x per week and it looks like we could save quite a bit by going from a diesel to an electric. We are thinking the tesla model 3 is maybe a good option.
Are we better buying the tesla with a bank loan of between £30 - £35k which seems like a lot.
Or, can anyone give any advice on how the salary sacrifice options work and what companies employers can offer this via? Also if you go down this route, can you buy the car at the end of the lease term?
We are in Scotland so my husband pays 41% tax so the salary sacrifice option could be beneficial. His work is quite small so they have said they are prepared to consider a request to set it up for him if he gives all the details on what to do. If you can't own the car at the end, we would probably prefer to buy ourselves. If we pay the load off in 4 years, we will have another 5 years at least without car payments. For any longer journeys, my husband will still have his diesel.
Any advice? Are we mad to be thinking about borrowing so much? Thank you!
I really like a Tesla and fancy one myself.
However the build quality and maintenance problems seem to leave a lot to be desired.
Based on that it seems very much a case of lease one. I’d be very surprised if even 5% of Tesla’s aren’t lease cars with the view of being dumped once the period ends.
Personally if I wanted a long term electric car with the view of keeping it for 10years I’d be in a Hyundai or Kia.
However the build quality and maintenance problems seem to leave a lot to be desired.
Based on that it seems very much a case of lease one. I’d be very surprised if even 5% of Tesla’s aren’t lease cars with the view of being dumped once the period ends.
Personally if I wanted a long term electric car with the view of keeping it for 10years I’d be in a Hyundai or Kia.
@cg2020uk I had a hyundai hybrid for months as a curtosy car and loved it so iv no doubt their ev's are great but my husband wants the tesla badge (even though it will technically be my car 
) and there's no changing his mind! I had a 1 series convertible it was a 2012 plate and wanted to replace it with a mini but iv been over ruled. Minis were never the cheapest 2nd hand car but the 2nd hand market is crazy at the Mo 
In theory I do want to pay off the finance and then keep it but if the High residual value remains in say 4 years then maybe we would sell it. I'm just conscious I don't want to fall into the trap of paying car finance for the rest of my life. Iv got a lot of worries about ev's, it's hard to no what's best to do.
) and there's no changing his mind! I had a 1 series convertible it was a 2012 plate and wanted to replace it with a mini but iv been over ruled. Minis were never the cheapest 2nd hand car but the 2nd hand market is crazy at the Mo In theory I do want to pay off the finance and then keep it but if the High residual value remains in say 4 years then maybe we would sell it. I'm just conscious I don't want to fall into the trap of paying car finance for the rest of my life. Iv got a lot of worries about ev's, it's hard to no what's best to do.
Getting a loan or spending a lot of money is a personal situation thing, so thats not my call.
But, EV's are likely to retain a decent amount of their value for the short to medium term in general, so arent going to depreciate like a Bentley! Its going to cost you, but its not going to be a totally painful experience, come trade-in time. And Tesla in general has a good retained value for pretty much everything they do. Not necessarily safe, just less painful.
A lot of EV buyers did take the jump to spend more because they are saving more - a somewhat risky strategy in my view. Yeah, an EV doesnt need a service in the traditional sense, but they still need some servicing and maintenance and energy prices are at risk. Is an EV still cheaper than an ICE? Yeah, and likely to remain so, even if the government steps in and offers funding to keep it so - its part of the wider go-green strategy. But my point is to keep costs manageable and dont automatically think you are going to save loads of money - you can, but it really depends what happens in the future.
As for getting a Tesla - have you considered going to a specialist? There are a bunch around and the following one is pretty active on YouTube etc:
https://www.rsymons.co.uk/used/vehicles/filters/ca...
They dont have much stock, but I am sure they could source something for you and are a dealer so could offer more services also. There are others though, its just that this one jumps to my mind. A specialist who can find you want you want and ship it to you might be the better option as you can ask all of the questions you like, because thats what they do! I know that RSymons have delivered cars to Scotland before (and done videos about it), but I am sure there is someone more local though.
One final question - is there a Tesla service center near you? Or can you get coverage via their mobile service? And I would recommend factoring in a warranty though. Tesla do offer one, but not sure how this is priced for second hand / transferable from current owner. Might be worth investigating that - but a warranty is worth it and of you can, get the Tesla one as it makes the experience much simpler.
But, EV's are likely to retain a decent amount of their value for the short to medium term in general, so arent going to depreciate like a Bentley! Its going to cost you, but its not going to be a totally painful experience, come trade-in time. And Tesla in general has a good retained value for pretty much everything they do. Not necessarily safe, just less painful.
A lot of EV buyers did take the jump to spend more because they are saving more - a somewhat risky strategy in my view. Yeah, an EV doesnt need a service in the traditional sense, but they still need some servicing and maintenance and energy prices are at risk. Is an EV still cheaper than an ICE? Yeah, and likely to remain so, even if the government steps in and offers funding to keep it so - its part of the wider go-green strategy. But my point is to keep costs manageable and dont automatically think you are going to save loads of money - you can, but it really depends what happens in the future.
As for getting a Tesla - have you considered going to a specialist? There are a bunch around and the following one is pretty active on YouTube etc:
https://www.rsymons.co.uk/used/vehicles/filters/ca...
They dont have much stock, but I am sure they could source something for you and are a dealer so could offer more services also. There are others though, its just that this one jumps to my mind. A specialist who can find you want you want and ship it to you might be the better option as you can ask all of the questions you like, because thats what they do! I know that RSymons have delivered cars to Scotland before (and done videos about it), but I am sure there is someone more local though.
One final question - is there a Tesla service center near you? Or can you get coverage via their mobile service? And I would recommend factoring in a warranty though. Tesla do offer one, but not sure how this is priced for second hand / transferable from current owner. Might be worth investigating that - but a warranty is worth it and of you can, get the Tesla one as it makes the experience much simpler.
If you fancy a Tesla, buy one, but trying to justify a 35/40k purchase on saving money doesn't quite add up.
Its a benefit, the economy as you would be spending probably 2.5k on diesel to do that kind of mileage, and to do the same probably about £1000 in electricity, based on 30p or so per kwh, might be a bit out but its at least twice, maybe three times more economical than a diesel doing 45 mpg.
No VED to pay, and the depreciation shouldn't be too bad, but a £1700 a year saving on VED plus fuel takes some time to recoup.
Its a benefit, the economy as you would be spending probably 2.5k on diesel to do that kind of mileage, and to do the same probably about £1000 in electricity, based on 30p or so per kwh, might be a bit out but its at least twice, maybe three times more economical than a diesel doing 45 mpg.
No VED to pay, and the depreciation shouldn't be too bad, but a £1700 a year saving on VED plus fuel takes some time to recoup.
As you're in Scotland, this may be an option if they get funding for 2022/23:
Interest-free loan of up to £28k for purchase of new electric vehicles with a list price of less than £50k.
https://energysavingtrust.org.uk/grants-and-loans/...
Interest-free loan of up to £28k for purchase of new electric vehicles with a list price of less than £50k.
https://energysavingtrust.org.uk/grants-and-loans/...
Dasher789 said:
To cut a long story short, I have just sold my car to my old car insurance company for £8k and I need a new car.
Iv always had second cars and paid for them in cash. However, my husband drives a 46 mile each way commute to work 3x per week and it looks like we could save quite a bit by going from a diesel to an electric. We are thinking the tesla model 3 is maybe a good option.
Are we better buying the tesla with a bank loan of between £30 - £35k which seems like a lot.
Or, can anyone give any advice on how the salary sacrifice options work and what companies employers can offer this via? Also if you go down this route, can you buy the car at the end of the lease term?
We are in Scotland so my husband pays 41% tax so the salary sacrifice option could be beneficial. His work is quite small so they have said they are prepared to consider a request to set it up for him if he gives all the details on what to do. If you can't own the car at the end, we would probably prefer to buy ourselves. If we pay the load off in 4 years, we will have another 5 years at least without car payments. For any longer journeys, my husband will still have his diesel.
Any advice? Are we mad to be thinking about borrowing so much? Thank you!
Your view may vary but I didn’t find it a worthwhile prospect.Iv always had second cars and paid for them in cash. However, my husband drives a 46 mile each way commute to work 3x per week and it looks like we could save quite a bit by going from a diesel to an electric. We are thinking the tesla model 3 is maybe a good option.
Are we better buying the tesla with a bank loan of between £30 - £35k which seems like a lot.
Or, can anyone give any advice on how the salary sacrifice options work and what companies employers can offer this via? Also if you go down this route, can you buy the car at the end of the lease term?
We are in Scotland so my husband pays 41% tax so the salary sacrifice option could be beneficial. His work is quite small so they have said they are prepared to consider a request to set it up for him if he gives all the details on what to do. If you can't own the car at the end, we would probably prefer to buy ourselves. If we pay the load off in 4 years, we will have another 5 years at least without car payments. For any longer journeys, my husband will still have his diesel.
Any advice? Are we mad to be thinking about borrowing so much? Thank you!
Tesla 3LR on salary sacrifice was £730 net per month before playing with the spec on a 3yr/35k deal.
At the end of the 3 years you may have the option to buy at market value, no chance to have equity like you can with a guaranteed final value.
If your husbands company goes with the right leasing company it’s a no brainier for me, you can access an half decent EV for a few hundred pounds per month. However, there are plenty of companies, like Zenith and Tusker, who only pass on a small percentage of the savings so you need to be carful - my company uses Tusker, and they’re not far of regular consumer pricing, make sure you avoid them. I’ve heard Octopus are one of the good ones.
It’s a personal choice but I wouldn’t go the bank lone route. Spending tens on thousands more to buy and EV seems like a bit of an oxymoron if you look at the financial side of things - but then again, like most people buying a car, you may just want something new shiny and electric. It’s not exactly saving the planet, more fuelling consumerism, but we’re all guilty.
I wanted a Porsche Taycan Cross Turismo, but as it would have been a cash purchase I really couldn’t justify spending and extra £40k over a slightly older ICE equivalent. My mileage doesn’t warrant spending that amount more on an EV, and it would have made an eye watering dent on my savings. On the flip side, my £40k V8 might be worth nothing in a few years - who knows
It’s a personal choice but I wouldn’t go the bank lone route. Spending tens on thousands more to buy and EV seems like a bit of an oxymoron if you look at the financial side of things - but then again, like most people buying a car, you may just want something new shiny and electric. It’s not exactly saving the planet, more fuelling consumerism, but we’re all guilty.
I wanted a Porsche Taycan Cross Turismo, but as it would have been a cash purchase I really couldn’t justify spending and extra £40k over a slightly older ICE equivalent. My mileage doesn’t warrant spending that amount more on an EV, and it would have made an eye watering dent on my savings. On the flip side, my £40k V8 might be worth nothing in a few years - who knows
thebraketester said:
How long is it going to take you to recoup the 35k in saved fuel bills?
If you get the Tesla, when's the break even point?
Ha Ha this site makes me laugh I have had some stick in the past when I talk about economy and saving money . If you get the Tesla, when's the break even point?
Now you are all talking about saving money . What's up cant you afford the lectric bill or has the council put your rent up ?
I thought the idea on here was to spend money you don't have on cars you cant afford !
I hope we don't see any more price rises or worse a big dip in the economy because the mods will have to change the name of the site to "Bus Pass Heads " !
To be honest, for the advice you’re after you’ll be better heading here
https://teslamotorsclub.com/tmc/forums/the-uk-and-...
The amount of people who can offer useful advice of any depth on here is relatively small (not saying they can’t talk on wider topics).
https://teslamotorsclub.com/tmc/forums/the-uk-and-...
The amount of people who can offer useful advice of any depth on here is relatively small (not saying they can’t talk on wider topics).
Heres Johnny said:
To be honest, for the advice you’re after you’ll be better heading here
https://teslamotorsclub.com/tmc/forums/the-uk-and-...
The amount of people who can offer useful advice of any depth on here is relatively small (not saying they can’t talk on wider topics).
Lol. I’m not sure she will get a balanced view form a Tesla forum.https://teslamotorsclub.com/tmc/forums/the-uk-and-...
The amount of people who can offer useful advice of any depth on here is relatively small (not saying they can’t talk on wider topics).
Dasher789 said:
To cut a long story short, I have just sold my car to my old car insurance company for £8k and I need a new car.
Iv always had second cars and paid for them in cash. However, my husband drives a 46 mile each way commute to work 3x per week and it looks like we could save quite a bit by going from a diesel to an electric. We are thinking the tesla model 3 is maybe a good option.
Are we better buying the tesla with a bank loan of between £30 - £35k which seems like a lot.
Or, can anyone give any advice on how the salary sacrifice options work and what companies employers can offer this via? Also if you go down this route, can you buy the car at the end of the lease term?
We are in Scotland so my husband pays 41% tax so the salary sacrifice option could be beneficial. His work is quite small so they have said they are prepared to consider a request to set it up for him if he gives all the details on what to do. If you can't own the car at the end, we would probably prefer to buy ourselves. If we pay the load off in 4 years, we will have another 5 years at least without car payments. For any longer journeys, my husband will still have his diesel.
Any advice? Are we mad to be thinking about borrowing so much? Thank you!
Spending 30k to save a little bit of money no sense, if you want to have something more fuel efficient you could spend 15k & get a good car. Iv always had second cars and paid for them in cash. However, my husband drives a 46 mile each way commute to work 3x per week and it looks like we could save quite a bit by going from a diesel to an electric. We are thinking the tesla model 3 is maybe a good option.
Are we better buying the tesla with a bank loan of between £30 - £35k which seems like a lot.
Or, can anyone give any advice on how the salary sacrifice options work and what companies employers can offer this via? Also if you go down this route, can you buy the car at the end of the lease term?
We are in Scotland so my husband pays 41% tax so the salary sacrifice option could be beneficial. His work is quite small so they have said they are prepared to consider a request to set it up for him if he gives all the details on what to do. If you can't own the car at the end, we would probably prefer to buy ourselves. If we pay the load off in 4 years, we will have another 5 years at least without car payments. For any longer journeys, my husband will still have his diesel.
Any advice? Are we mad to be thinking about borrowing so much? Thank you!
I'm in the same position and I'm doing the maths to see how it stacks up.
Both cars 3 yr lease 12k miles ( excess miles to pay on top ) 1 month payment up front.
Currently lease a golf gtd.
Costs Inc VAT
£330 lease per month
£360 diesel per month
This gets me 1600 miles on average
Tesla model Y ( as they're cheaper to lease than a model 3 )
This is the long range version. 75kw battery
Range 200 for easy maths per full charge
Costs Inc VAT
£740 lease per month
£ 60 this gives equivalent 1600 miles to golf based on an average of 10p / kw ( 8 full charges per month )
So comparison is diesel golf £700 a month , electric Tesla £800 a month
So above assumes I buy 600kw per month to achieve 1600 miles
Overnight charging to keep topping up.
Electric home prices are crazy, but octopus gives 4 hours at 7.5p overnight so with scheduling should be able to utilise that, and keep reasonably topped up.
I accept outside those hours electric is sold at a premium.
Golf gtd leases may also be more expensive now than my previous deal?
So on paper Tesla more expensive but.....
I have a limited VAT registered company.
Golf I pay for through money I've taken out of the company and paid tax on. So the actual cost is massively higher.
Tesla the company can pay for in its entirety, and I will pay 1% BIK
So still looks like a £55k Tesla is cheaper over a year than a £35k diesel golf
Looked at purchasing a Tesla but the maths for me seem worse than leasing
Both cars 3 yr lease 12k miles ( excess miles to pay on top ) 1 month payment up front.
Currently lease a golf gtd.
Costs Inc VAT
£330 lease per month
£360 diesel per month
This gets me 1600 miles on average
Tesla model Y ( as they're cheaper to lease than a model 3 )
This is the long range version. 75kw battery
Range 200 for easy maths per full charge
Costs Inc VAT
£740 lease per month
£ 60 this gives equivalent 1600 miles to golf based on an average of 10p / kw ( 8 full charges per month )
So comparison is diesel golf £700 a month , electric Tesla £800 a month
So above assumes I buy 600kw per month to achieve 1600 miles
Overnight charging to keep topping up.
Electric home prices are crazy, but octopus gives 4 hours at 7.5p overnight so with scheduling should be able to utilise that, and keep reasonably topped up.
I accept outside those hours electric is sold at a premium.
Golf gtd leases may also be more expensive now than my previous deal?
So on paper Tesla more expensive but.....
I have a limited VAT registered company.
Golf I pay for through money I've taken out of the company and paid tax on. So the actual cost is massively higher.
Tesla the company can pay for in its entirety, and I will pay 1% BIK
So still looks like a £55k Tesla is cheaper over a year than a £35k diesel golf
Looked at purchasing a Tesla but the maths for me seem worse than leasing
JAMSXR said:
If your husbands company goes with the right leasing company it’s a no brainier for me, you can access an half decent EV for a few hundred pounds per month. However, there are plenty of companies, like Zenith and Tusker, who only pass on a small percentage of the savings so you need to be carful - my company uses Tusker, and they’re not far of regular consumer pricing, make sure you avoid them. I’ve heard Octopus are one of the good ones.
I recently benchmarked Tusker vs Octopus for our soon to launch company EV scheme. They both gave me access to their portals so i could benchmark the lease costs. I did this on a gross basis to ensure I was comparing like for like. Tusker in 75% of cases was cheaper than Octopus. Not by massive margins, but they were cheaper. So we are about to launch with Tusker.Your general view is correct however. I believe both companies aren't passing all the savings onto the user, as neither prices looked significantly better than a private contract hire deal. The only exception to this is for those people who earn £100k to £125k and start to lose their personal allowance. This gives a marginal income tax rate of 60% and makes these schemes a no brainer on a net cost basis.
UrbanAchiever said:
Your general view is correct however. I believe both companies aren't passing all the savings onto the user, as neither prices looked significantly better than a private contract hire deal. The only exception to this is for those people who earn £100k to £125k and start to lose their personal allowance. This gives a marginal income tax rate of 60% and makes these schemes a no brainer on a net cost basis.
100%. When you look at the gross costs for most schemes they don't stack up well against a personal lease on the same terms even when you add insurance etc. into the equation. You might be paying £100 less a month than a personal lease as a 40% tax end user so the deal looks good, but when you consider the savings that are being made it should be considerably better than that.
I did the maths on a few examples and in some cases over 4 years the SS company were charging almost 100% of the vehicle list price (£1100 a month for a Model Y LR, list price £55k). Nice little earner that for the moment so no surprise to see everyone jumping on the bandwagon.
mikebradford said:
Looked at purchasing a Tesla but the maths for me seem worse than leasing
What is your depreciation calculation on the purchase v the lease cost? The TCO needs to be the primary consideration, and on a car with a very shallow depreciation curve and high lease costs I struggle to believe leasing comes out on top?After 3 years in your example that £55k Model Y would have to be worth <£30k which I would suggest is unlikely?
Edited by SWoll on Saturday 2nd April 16:18
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