Salary sacrifice leasing

[PushedDover]

Basil Brush said:

PushedDover said:

AyBee said:

James6112 said:

z4RRSchris said:

James6112 said:

Who is trousering the cash, on the overpriced SSLs
The lease company or a kickback for the employer?

the lease company is trousering the cash via the insurance + extras

basically they give you the business lease rate, then the extras are double the cost you could find elsewhere - all in the knowing that it will net down to cheaper.

I can personal lease PCP Tesla for around £600 a month. In 4 years, 15k final payment.

Salary sacrifice, net monthly payment is higher, Then give it back. Plus the tax stuff.

Some perk!

Does PCP include maintenance, tyres and insurance?

And free charger / installation ?

Does his SS scheme?

I wouldn't know, but I know mine does. as do the other items in the list above.

[Sheepshanks]

James6112 said:

I can personal lease PCP Tesla for around £600 a month. In 4 years, 15k final payment.

Salary sacrifice, net monthly payment is higher, Then give it back. Plus the tax stuff.

Some perk!

PCP isn't a lease! It's a form of HP.

[z4RRSchris]

As before, those slandering the scheme.

my SS includes no deposit, the lease, insurance, maint, car charger, tyres, breakdown, + insurance so I can hand back the car at any point.

The gross cost is £1196. My employer don't pass on any NI saving so they save 15.05%

20% tax rate - 798 net
40% tax rate - 679 net
60% tax rate - 439 net
45% tax rate - 619 net

Try and find a 36+0, 8k model Y long range lease which includes the above, or even lease + insurance, for under £650pm.

[Vanden Crash]

[SWoll]

z4RRSchris said:

As before, those slandering the scheme.

Slandering?

So your happy that the £500+ per month the SS company charges in addition to what a personal lease costs on the same terms is commensurate with what is being offered as part of the deal?The fact you save a few quid isn't the point, you need to consider you'd be saving considerably more if the gross price wasn't such a piss take.

Let's assume £1k per year insurance, £1k for the charger, £250 for the single 2 year brake dip and filter service and £750 for a set of tyres.

All in cost over 3 years of £5k, and could be cheaper from an insurance and tyre standpoint. That's £5k of the £18k+ they are charging for the privilege. They could halve that figure, still make a considerable margin on every car and your monthly cost would be <£500.

[Heres Johnny]

z4RRSchris said:

As before, those slandering the scheme.

my SS includes no deposit, the lease, insurance, maint, car charger, tyres, breakdown, + insurance so I can hand back the car at any point.

The gross cost is £1196. My employer don't pass on any NI saving so they save 15.05%

20% tax rate - 798 net
40% tax rate - 679 net
60% tax rate - 439 net
45% tax rate - 619 net

Try and find a 36+0, 8k model Y long range lease which includes the above, or even lease + insurance, for under £650pm.

First company I found on google were £649, there is no maintenance, you won't need tyres in 24k miles, breakdown is covered by the warranty, so that leaves insurance, I pay £360 a month, so all up exactly the same as a 40% tax payer.

And if I drive for business I get 45p a miles and not 8p

£1196 is an obscene about and they shouldnt be rewarded with your business

[z4RRSchris]

i personally dont give a fk who makes money i just look at the net cost to me, fair play to them for making some cash out of the tax payer. Good business to be in well done.

if i sell a flat for £20m that only cost me £10m should i charge them less?

[Basil Brush]

SWoll said:

z4RRSchris said:

As before, those slandering the scheme.

Slandering?

So your happy that the £500+ per month the SS company charges in addition to what a personal lease costs on the same terms is commensurate with what is being offered as part of the deal?The fact you save a few quid isn't the point, you need to consider you'd be saving considerably more if the gross price wasn't such a piss take.

Let's assume £1k per year insurance, £1k for the charger, £250 for the single 2 year brake dip and filter service and £750 for a set of tyres.

All in cost over 3 years of £5k, and could be cheaper from an insurance and tyre standpoint. That's £5k of the £18k+ they are charging for the privilege. They could halve that figure, still make a considerable margin on every car and your monthly cost would be <£500.

But why would they bother when people are apparently happy that they're saving a few quid on a monthly net basis?

[SWoll]

z4RRSchris said:

i personally dont give a fk who makes money i just look at the net cost to me, fair play to them for making some cash out of the tax payer. Good business to be in well done.

if i sell a flat for £20m that only cost me £10m should i charge them less?

Did that really work as an analogy in your head?

Again, it's a net cost that would be considerably lower to you if they weren't price gouging at the expense of other tax payers.

I'm sure you could do something useful with a £2-2500 a year saving? That's a decent holiday for 2 last time I looked.

[z4RRSchris]

SWoll said:

z4RRSchris said:

i personally dont give a fk who makes money i just look at the net cost to me, fair play to them for making some cash out of the tax payer. Good business to be in well done.

if i sell a flat for £20m that only cost me £10m should i charge them less?

Did that really work as an analogy in your head?

Again, it's a net cost that would be considerably lower to you if they weren't price gouging at the expense of other tax payers.

I'm sure you could do something useful with a £2-2500 a year saving? That's a decent holiday for 2 last time I looked.

Sorry where are you getting 2 grand a year saving? The scheme isn't available without the pricing gouging?

im confused.

[ZiggyNiva]

Heres Johnny said:

First company I found on google were £649, there is no maintenance, you won't need tyres in 24k miles, breakdown is covered by the warranty, so that leaves insurance, I pay £360 a month, so all up exactly the same as a 40% tax payer.

And if I drive for business I get 45p a miles and not 8p

£1196 is an obscene about and they shouldnt be rewarded with your business

you pay £360 a month in insurance. That's crazy, although Model Y does seem expensive to insure ( I was quoted £1000 with a large excess having not paid more the £450 (and a small excess) on anything since I was in my 20's).
My MTLR is £1008 gross. I pay £584.99 net, however it also brings me back to getting some child benefit, so actual reduction is £495.41 and no effect on my pension + free charger. The cheapest MYLR on leasing.com on a 1 + 36 and 10000 miles is £711.19 + the upfront. in 36000 I will need tyres and their is some maintenance https://www.tesla.com/ownersmanual/modely/en_eu/GU...
So less then £300 a month to cover tyres, insurance and a small amount of servicing. I agree they are obviously making a few quid here, but to say they shouldn't be rewarded with the business doesn't make sense. Ultimately it saves me a reasonable amount of money, the other option is I spend more just to prove a point, which would be crazy.

[SWoll]

ZiggyNiva said:

Heres Johnny said:

First company I found on google were £649, there is no maintenance, you won't need tyres in 24k miles, breakdown is covered by the warranty, so that leaves insurance, I pay £360 a month, so all up exactly the same as a 40% tax payer.

And if I drive for business I get 45p a miles and not 8p

£1196 is an obscene about and they shouldnt be rewarded with your business

you pay £360 a month in insurance. That's crazy, although Model Y does seem expensive to insure ( I was quoted £1000 with a large excess having not paid more the £450 (and a small excess) on anything since I was in my 20's).
My MTLR is £1008 gross. I pay £584.99 net, however it also brings me back to getting some child benefit, so actual reduction is £495.41 and no effect on my pension + free charger. The cheapest MYLR on leasing.com on a 1 + 36 and 10000 miles is £711.19 + the upfront. in 36000 I will need tyres and their is some maintenance https://www.tesla.com/ownersmanual/modely/en_eu/GU...
So less then £300 a month to cover tyres, insurance and a small amount of servicing. I agree they are obviously making a few quid here, but to say they shouldn't be rewarded with the business doesn't make sense. Ultimately it saves me a reasonable amount of money, the other option is I spend more just to prove a point, which would be crazy.

He clearly meant £360 per year.

The gross price mentioned above was £1196 a month.

There is no upfront payment on a 1 + 35 lease.

You're unlikely to need tyres in 24k miles, which was the terms of the deal being discussed .

Servicing is £7.50 a month.

You're already paying approx £200 less for better terms than the quote being discussed so not really comparable?

[z4RRSchris]

private insurance for me and the misses for london address for model Y long range, 8000 miles.

£2976 / 248pm

Current insurance on a supercharged range sport and a Z4 is £400 per year !

So we have
36+1 lease - £649pm
car insurance - £248pm
Tyres - lets say 1 set @ £800. - £22pm
breakdown (electric car) - £20pm
car charger install @ £800 - £22pm
business insurance -£50pm maybe much more?

the above is: £1011pm, paid out of my net.

I pay £619pm - lovely saving.

Edited by z4RRSchris on Tuesday 31st January 15:34

[Basil Brush]

z4RRSchris said:

i personally dont give a fk who makes money i just look at the net cost to me, fair play to them for making some cash out of the tax payer. Good business to be in well done.

if i sell a flat for £20m that only cost me £10m should i charge them less?

I personally do give a f*** if I'm paying your lease company but each to their own.

[page3]

Just got a new personal lease. It was £250/month cheaper than going though our salary sacrifice scheme, which in no way can justify the price difference based on insurance and maintenance being included.

[TheDrownedApe]

page3 said:

Just got a new personal lease. It was £250/month cheaper than going though our salary sacrifice scheme, which in no way can justify the price difference based on insurance and maintenance being included.

Well done. Every deal is different though and some offers on SS are far better than pers leasing.

As with all methods......chase the deal not the car

[z4RRSchris]

TheDrownedApe said:

page3 said:

Just got a new personal lease. It was £250/month cheaper than going though our salary sacrifice scheme, which in no way can justify the price difference based on insurance and maintenance being included.

Well done. Every deal is different though and some offers on SS are far better than pers leasing.

As with all methods......chase the deal not the car

and unless your paying 40/45/60% tax its not great.

[JackReacher]

And salary sacrifice is not always just about the tax saving, it can have real benefits of you are trying to keep taxable pay below a threshold, especially the £100k point of you have kids in childcare. Tax free childcare and additional 15 hours a week multiplied by number of kids is significant. Of course you could stick in a pension, but if you need to pay for a car anyway you might as well use salary sacrifice.

[AyBee]

JackReacher said:

And salary sacrifice is not always just about the tax saving, it can have real benefits of you are trying to keep taxable pay below a threshold, especially the £100k point of you have kids in childcare. Tax free childcare and additional 15 hours a week multiplied by number of kids is significant. Of course you could stick in a pension, but if you need to pay for a car anyway you might as well use salary sacrifice.

Yeh, but they're making too much money, so regardless of whether it makes financial sense to me, I'm just going to pay 60% tax, lose my tax free childcare and additional 15 hours and be happy in the knowledge that they're not making money and I'm paying more tax

[jgrewal]

Ok not for first time but we're considering to go down this path again.

Wife who is on 50k rage salary for NHS has an option to get BMW IX MSport full loaded for £600 impact on her net earnings through salary sacrifice scheme. This is sounding very attractive for 36 months (total would be 22k over 3 years including insurance, tyres and maintenance on a 80k car!)

Yes of course there is a hit on pension contributions for her but right now personal lease prices and the used car market is looking like a complete mess to replace our current car by November.

Edited by jgrewal on Sunday 5th March 13:57