Salary sacrifice leasing

[thecopster]

I’m waiting on the Q6 to see if it’s under the 800 mark net!

[SWoll]

nufcfan said:

Where is the value at the minute in the mid to larger EV class? I can use Tusker but nothing really jumping out. If I look at 3y 7500 miles options gross payments as follows:

I pace HSE £1059 gross £522 net
IX 40 sport £1178 gross £570 net
Q8 55 sport £1233 gross £599 net
Ix3 Msport £1056 gross £509 net
Q4 sportback 45 Quattro black edition £1022 gross £490

Not sure I am seeing anything to tempt me yet. Missing anything better?

Model Y?

TBH those prices don't look bad at all compared to what has been shared recently + how heavy the depreciation is on many of them.

The iPace as an example is around £70k new with discount, and at 3 years old they're up for around £25k. Tusker must be picking them up cheap if £39k over 3 years is making them any kind of profit?

You'd struggle to get a personal lease on an ix 40 Sport for £1178 on 1+35, 7.5k miles PA.

[nufcfan]

Model Y is under £500 net, but not sure around build quality etc and don't love the looks.

Agree prices are not that bad when factoring in insurance and maintenance etc and not having to worry about depreciation. I am swinging more towards and iX, but want to schedule a test drive of both Audi's. Ipace would definitely be under consideration, but charging speed isn't great and tech starting to get a bit old now compared to newer models - nice drive though!

[Basil Brush]

Polestar 3?

[TheDrownedApe]

nufcfan said:

Where is the value at the minute in the mid to larger EV class? I can use Tusker but nothing really jumping out. If I look at 3y 7500 miles options gross payments as follows:

I pace HSE £1059 gross £522 net - 1187
IX 40 sport £1178 gross £570 net - 1522
Q8 55 sport £1233 gross £599 net - 1603
Ix3 Msport £1056 gross £509 net - 1210
Q4 sportback 45 Quattro black edition £1022 gross £490 - 991

Not sure I am seeing anything to tempt me yet. Missing anything better?

Briefly looked on mine as it's Friday and I'm wasting time.

GV70? on my scheme 3y/8k it's 1104 gross

EQB 350 215kw seems a bargain at 900 gross

EV9 and EX90 look pricey but might be different on Tusker

[ahenners]

nufcfan said:

Where is the value at the minute in the mid to larger EV class? I can use Tusker but nothing really jumping out. If I look at 3y 7500 miles options gross payments as follows:

I pace HSE £1059 gross £522 net
IX 40 sport £1178 gross £570 net
Q8 55 sport £1233 gross £599 net
Ix3 Msport £1056 gross £509 net
Q4 sportback 45 Quattro black edition £1022 gross £490

Not sure I am seeing anything to tempt me yet. Missing anything better?

There's been plenty of Enyaqs recently from stock or incoming stock at around 350 net on similar terms (40%). They are "only" a 60 but spec is decent enough as they are the "edition" trim. Not sure if it counts as mid to larger EV class, but certainly one of the better practical EVs - big boot and cabin.

[nufcfan]

Test drive the q4 and q8 errors yesterday, 45 Quattro Q4 and 55 Quattro Q8. Both nice cars and good drives, thought the q4 was a bit smaller than I want ideally but just about big enough. Q8 was nice, but only had it in the sport trim so would like to see Sline, but I thought it was well equipped.

Leaning towards a Q8 so far but going to cost about £75 per month more I think.

Driving the ix3 and iX later this week and then need to make a decision.

[interstellar]

A Q8 for £599 a month sounds like a bargain. Is that all insured etc and the other benefit is £0 down I take it?

[nufcfan]

Yeah it’s salary sacrifice package which includes maintenance, insurance, tyres etc. I’m in Scotland so hit with a 45% tax rate now which makes these more attractive than before. Decent hit on pension though!

[interstellar]

Why is it a hit on your pension? Just by spending more on the car you are contributing less each month to your pot?

[nufcfan]

NHS so reduction in salary means less into pension pot as a defined benefit scheme e.g gross before salary sacrifice might be £90k but if a £10k salary sacrifice gross payment on a car the pension is based on an £80k salary. I think it’s the main negative of SS but offset by tax savings etc.

[interstellar]

Oh I didn’t know that. Is that the same for all SS car schemes?

Does a SS pension scheme work the same. Ie 90k but do 5k per year SS in to your pension , the company only pay their part on 85k not 90k or is that different?

My company pay their pension contribution based off my full salary not after I have done SS for my pension.

We have only just moved to it for pension so I am not an expert.


We are also currently looking at moving to car SS.

[riskyj]

interstellar said:

Oh I didn’t know that. Is that the same for all SS car schemes?

No, many (most?) schemes do not affect pension. NHS is one of the common ones which does.

[rudester]

riskyj said:

interstellar said:

Oh I didn’t know that. Is that the same for all SS car schemes?

No, many (most?) schemes do not affect pension. NHS is one of the common ones which does.

I'm not sure this statement is correct. Employers contribute to your pension based on your salary.
If you earn 50k and you employer pays 5% into your salary, that's a pension contribution of £2,500.
If you sacrifice 5k of your salary on a vehicle, then your employers pension contribution will be 5% of 45k, so £2,250. A reduction of £250 per year.

[Paul_M3]

rudester said:

riskyj said:

interstellar said:

Oh I didn’t know that. Is that the same for all SS car schemes?

No, many (most?) schemes do not affect pension. NHS is one of the common ones which does.

I'm not sure this statement is correct. Employers contribute to your pension based on your salary.
If you earn 50k and you employer pays 5% into your salary, that's a pension contribution of £2,500.
If you sacrifice 5k of your salary on a vehicle, then your employers pension contribution will be 5% of 45k, so £2,250. A reduction of £250 per year.

Not for my company. Pension is based on your headline salary. Salary sacrifice items do not affect it at all.

[phpe]

Paul_M3 said:

rudester said:

riskyj said:

interstellar said:

Oh I didn’t know that. Is that the same for all SS car schemes?

No, many (most?) schemes do not affect pension. NHS is one of the common ones which does.

I'm not sure this statement is correct. Employers contribute to your pension based on your salary.
If you earn 50k and you employer pays 5% into your salary, that's a pension contribution of £2,500.
If you sacrifice 5k of your salary on a vehicle, then your employers pension contribution will be 5% of 45k, so £2,250. A reduction of £250 per year.

Not for my company. Pension is based on your headline salary. Salary sacrifice items do not affect it at all.

Same on mine - base salary before any adjustments is used for pension, death in service, etc

[riskyj]

phpe said:

Same on mine - base salary before any adjustments is used for pension, death in service, etc

And mine. Sample of 3 I appreciate, but illustrates that indeed not all ss schemes affect pension.

NHS and teachers are the only two I’m aware of where pension is affected.

[Cupid-stunt]

riskyj said:

phpe said:

Same on mine - base salary before any adjustments is used for pension, death in service, etc

And mine. Sample of 3 I appreciate, but illustrates that indeed not all ss schemes affect pension.

NHS and teachers are the only two I’m aware of where pension is affected.

ditto.
I even checked when there was chatter about an getting a SS car impacting pension - no impact here.

[Sheepshanks]

Cupid-stunt said:

riskyj said:

phpe said:

Same on mine - base salary before any adjustments is used for pension, death in service, etc

And mine. Sample of 3 I appreciate, but illustrates that indeed not all ss schemes affect pension.

NHS and teachers are the only two I’m aware of where pension is affected.

ditto.
I even checked when there was chatter about an getting a SS car impacting pension - no impact here.

It only affects people with defined benefit pensions and that’s pretty well only public sector workers now.

[Zigster]

Every salary sacrifice scheme I’ve been involved in designing, or come across, has been structured so that there is a notional salary which is unaffected by salary sacrifice. And this notional salary is used for benefits such as pension. It’s a key part of the design to avoid distortions.

It seems a big flaw in the public sector schemes that they don’t do this. If it affects the salary figure on which pension is calculated, there could be an enormous hit on the future value of a defined benefit pension.