Salary sacrifice leasing

[blueacid]

James6112 said:

Sounds good.
A lot better than my offering !
Tesla looked like £850 gross, 36/10k.
Hopefully there will be better offers when confirmation comes through.

Ha, that's still much better than I'm seeing. Lex Autolease are the provider my employer has chosen, and I'm almost certain there are kickbacks and rewards in play for that.

A Tesla 3, standard, no options, 36mo 10k/yr is £1090 gross, therefore if you're Basic Rate that's £744 a month, 40% rate £650 a month. This includes insurance, tyres, servicing etc, but doesn't help at all with installation of a home charger or similar.

I feel like I should be getting an electric car, but I'm not about to pay that sort of money for one.

[James6112]

Exactly
2 prices
The real price..
Or the Salary Sacrifice price !

There should be a ruling. The open market - the tax break.

But no kick backs so it won’t happen.

[PushedDover]

As mentioned above elsewhere, my Tesla Y is 3y and 12k pa
Takes £400 from my take home.
I am keen to know how I can extend it already with OctopusEV (only 6mo in) as it seems like a winning deal.

[SWoll]

PushedDover said:

As mentioned above elsewhere, my Tesla Y is 3y and 12k pa
Takes £400 from my take home.
I am keen to know how I can extend it already with OctopusEV (only 6mo in) as it seems like a winning deal.

Which based on every deal I've seen and the online comcar calculator would suggest you are earning in the region of £125k per year and the tax saving is substantial due to the punitive rate and loss of personal allowance?

If not then you really have done exceptionally well.

[TheDrownedApe]

Jesus folks, it's the same as any leasing deal; chase the deal not the car. My SS tesla lease are stupidly expensive; therefore I don't look at them

[justin220]

Just some very tough numbers after looking at a Taycan Sport Turismo this morning

Very basic spec, metallic colour and 21" wheels.

Tusker - £1200 net pet month for 3 years is £43.2k for everything

Porsche PCP is £16.7k deposit and 36 x £829 per month = £46.5k..
I guess the advantage here is potential residuals and it being worth more than the final payment £52.5k. But the Tusker includes insurance and maintenance etc

[theboss]

justin220 said:

Just some very tough numbers after looking at a Taycan Sport Turismo this morning

Very basic spec, metallic colour and 21" wheels.

Tusker - £1200 net pet month for 3 years is £43.2k for everything

Porsche PCP is £16.7k deposit and 36 x £829 per month = £46.5k..
I guess the advantage here is potential residuals and it being worth more than the final payment £52.5k. But the Tusker includes insurance and maintenance etc

Whats the RRP / P11d value and interest rate on the PCP?

[raspy]

justin220 said:

Just some very tough numbers after looking at a Taycan Sport Turismo this morning

Very basic spec, metallic colour and 21" wheels.

Tusker - £1200 net pet month for 3 years is £43.2k for everything

Porsche PCP is £16.7k deposit and 36 x £829 per month = £46.5k..
I guess the advantage here is potential residuals and it being worth more than the final payment £52.5k. But the Tusker includes insurance and maintenance etc

Would you really enjoy driving a very basic spec Taycan? I had to add £20k of options when I priced up a Taycan to bring it up to a reasonably desirable spec. My understanding is that residuals are much stronger if you spec the right options vs a bog standard car. Is that your understanding too?

[theboss]

raspy said:

justin220 said:

Just some very tough numbers after looking at a Taycan Sport Turismo this morning

Very basic spec, metallic colour and 21" wheels.

Tusker - £1200 net pet month for 3 years is £43.2k for everything

Porsche PCP is £16.7k deposit and 36 x £829 per month = £46.5k..
I guess the advantage here is potential residuals and it being worth more than the final payment £52.5k. But the Tusker includes insurance and maintenance etc

Would you really enjoy driving a very basic spec Taycan? I had to add £20k of options when I priced up a Taycan to bring it up to a reasonably desirable spec. My understanding is that residuals are much stronger if you spec the right options vs a bog standard car. Is that your understanding too?

The figures seem absolutely mental either way. £80k to buy or £1200 net which suggests the gross cost to the employer is circa £2k/month.

In this case you'd be almost paying the entire cost of the car in gross terms in a 3 year period, at a time when residuals haven't been stronger.

[justin220]

raspy said:

Would you really enjoy driving a very basic spec Taycan? I had to add £20k of options when I priced up a Taycan to bring it up to a reasonably desirable spec. My understanding is that residuals are much stronger if you spec the right options vs a bog standard car. Is that your understanding too?

Being honest it was just as a rough example more than anything.

I think I'd go basic (ish) spec if leasing and handing back, but probably option up if I was buying/pcp

[blueacid]

TheDrownedApe said:

Jesus folks, it's the same as any leasing deal; chase the deal not the car. My SS tesla lease are stupidly expensive; therefore I don't look at them

Sadly though with salary sacrifice you're locked in to one provider typically. Your employer will have struck a deal with one supplier, and that's the price.

Same as if you get given a Lenovo laptop from work; doesn't matter how much you might have wanted an HP one, the company has a contract with Lenovo. Or a work iPhone when you really want Android.

...or an attractive Salary Sacrifice deal from Octopus, but all you get is Lex.

[ian_c_uk]

James6112 said:

Exactly
2 prices
The real price..
Or the Salary Sacrifice price !

There should be a ruling. The open market - the tax break.

But no kick backs so it won’t happen.

Just to pick up on this, as I recently investigated options for my employer.

I can catagorically state I was not offered any “kickback” for the business or myself.

There are elements of the deal that protect the employer - return cars when staff leave early, damage waiver for end of lease etc.

There were incentives for the individual leasing - home chargers / credit on a public chargers on a gift card etc.

There were no “well sir, as the organiser you get a free Taycan” offers, sadly!

[SWoll]

TheDrownedApe said:

Jesus folks, it's the same as any leasing deal; chase the deal not the car. My SS tesla lease are stupidly expensive; therefore I don't look at them

You're very lmited in your options though? You have a single provider and zero flexibilty on terms (length/mileage/maintenence) in the vast majority of cases.

On my previous employers current SS scheme everything is equally expensive (EV6/Model 3/i4) as they are price gouging on all options. All of the cars in the £50-60k range are within a few pounds of £1100 a month gross There is not really any deal to be chased, if you want to pay less you need to pick a cheaper/smaller car.

[silent ninja]

ian_c_uk said:

Just to pick up on this, as I recently investigated options for my employer.

I can catagorically state I was not offered any “kickback” for the business or myself.

There are elements of the deal that protect the employer - return cars when staff leave early, damage waiver for end of lease etc.

There were incentives for the individual leasing - home chargers / credit on a public chargers on a gift card etc.

There were no “well sir, as the organiser you get a free Taycan” offers, sadly!

Did you benchmark your suppliers and their service? Curious.

I'm with Zenith and their scheme seems quite good. They include all the things you mention. So why is the price differential so big with say Tusker?

I suspect proper competition and fair evaluation is not taking place - it's common for big companies not to properly shop around (because they've already decided and then backward engineer), or have a suboptimal/terrible procurement approach. Departments tend to take the best option in terms of ease of management, rather than considering the best option for ALL and in particular the employees who are ultimately the customer of the service.

If the scheme is too expensive, it's not a benefit and doesn't instill employee loyalty...so what's the point? To tick a box?

Just my two pennies and not aimed at you.

[anonymous-user]

raspy said:

justin220 said:

Just some very tough numbers after looking at a Taycan Sport Turismo this morning

Very basic spec, metallic colour and 21" wheels.

Tusker - £1200 net pet month for 3 years is £43.2k for everything

Porsche PCP is £16.7k deposit and 36 x £829 per month = £46.5k..
I guess the advantage here is potential residuals and it being worth more than the final payment £52.5k. But the Tusker includes insurance and maintenance etc

Would you really enjoy driving a very basic spec Taycan? I had to add £20k of options when I priced up a Taycan to bring it up to a reasonably desirable spec. My understanding is that residuals are much stronger if you spec the right options vs a bog standard car. Is that your understanding too?

That seems very expensive. I’ve gone i4 M50 at £600 per month net. But I did price up a Taycan 4 CT with about £3k of options and it was £750 net for 12,000 miles.

Decided against it as I actually wanted more options and couldn’t justify the monthly difference over the i4.

Those prices are from Zenith.

[Evanivitch]

Looking at LeaseLoco prices and comparing it to OctopusEV prices, whilst I know the latter is inclusive of maintenance and insurance, it's hard to see where the tax savings are in the pricing.

[justin220]

zj2016 said:

That seems very expensive. I’ve gone i4 M50 at £600 per month net. But I did price up a Taycan 4 CT with about £3k of options and it was £750 net for 12,000 miles.

Decided against it as I actually wanted more options and couldn’t justify the monthly difference over the i4.

Those prices are from Zenith.

I'd be seriously tempted by a Taycan ST or CT at those prices.

[anonymous-user]

justin220 said:

zj2016 said:

That seems very expensive. I’ve gone i4 M50 at £600 per month net. But I did price up a Taycan 4 CT with about £3k of options and it was £750 net for 12,000 miles.

Decided against it as I actually wanted more options and couldn’t justify the monthly difference over the i4.

Those prices are from Zenith.

I'd be seriously tempted by a Taycan ST or CT at those prices.

The 24 month lead time and the fact that the spec would have been poorer than the i4 put me off.

However on the plus side it did seem cheap given the price of the car.

If I’d known that I would be looking at c 12 months on the BMW, not the 6 I was quoted, my decision might have been different!

[SiH]

blueacid said:

...or an attractive Salary Sacrifice deal from Octopus, but all you get is Lex.

We tried to set up a SS scheme with Octopus and after a lot of dicking around on their part they decided that they couldn't work with us. We're a small startup with about 9 employees, ~£8M in the bank from VC funding but no revenue and no plans for revenue in the next couple of years. Our exit is to sell to one of the large companies in our area once we've completed our development work. I totally understand their perspective but it was a shame they pissed us around for about 3 months.

Anyway, gripe over, it seems that Octopus are looking at the bigger picture when it comes to EV deals. I wouldn't be surprised if their margins are much smaller when compared to other EV SS schemes as they are also looking to bring OctopusEV customers on board as Octopus Energy customers. They were offering something like 5,000 miles of free electricity for OctopusEV customers who signed up to Octopus Go so I think that by getting new energy customers they can offer good EV deals.

There are so many variables on the SS side of things and some companies seem to offer flat payments but others really front-load things to cover some of the extras like Early Termination Cover. In some (all that I've seen so far) the ETC is expensive and doesn't really cover that much owing to the number of exclusions that are applied.

I'm about to pull the trigger on a Tesla Y and while some of the costs seem to be somewhat inflated it still comes out to be better for me than a conventional lease or PCP. It's very much horse for courses and the SS approach is certainly not the panacea that some think it to be.

[TWFY]

zj2016 said:

The 24 month lead time and the fact that the spec would have been poorer than the i4 put me off.

However on the plus side it did seem cheap given the price of the car.

If I’d known that I would be looking at c 12 months on the BMW, not the 6 I was quoted, my decision might have been different!

Hey, I'm new around here but have been following this thread with great interest.

I'm currently working for a company that uses Zenith for their SS supplier but I'm about to move to a new employer who is planning to implement one in the coming months.

The rates you've quoted for the i4 are really competitive via Zenith; much more competitive than I've seen via Zenith myself so guessing you're in the £100k+ pocket of income?

Does anyone have a view on which supplier is the best? I'd love to hear any comparisons that have been completed. I've found Zenith a bit difficult to deal with and their website a bit challenging when picking specific options but my main priority is that they're competitive!

Cheers in advance.