Salary sacrifice leasing

[Heres Johnny]

AyBee said:

Having previously been disillusioned by MYLR quotes coming in far more expensive than they should have done with the lease-gouging, an email on Thursday which offered a MYRWD for £50/month less than usual (net) and with an additional 3,000 miles of supercharging (to go with the 4,000 miles I'd get anyway), I finally decided to pull the trigger. It'll be cheaper than the family wagon on the drive currently and I won't have to worry about any unexpected maintenance for the next 3 years which is nice. It's poverty spec, I couldn't even get it in not-white, but I'm looking forward to the change.

There's plenty of lease companies who bought with the expectation of leasing them and are left holding stock. I heard of one person taking collection of their "new car" that was first registered in Nov last year. You might want to double check on that if it bothers you, just don't accept they're passing on some great offer to you out the goodness of their heart, they probably have cars they need to shift. That all said, if you gain from there problem, fill your boots

[AyBee]

Heres Johnny said:

AyBee said:

Having previously been disillusioned by MYLR quotes coming in far more expensive than they should have done with the lease-gouging, an email on Thursday which offered a MYRWD for £50/month less than usual (net) and with an additional 3,000 miles of supercharging (to go with the 4,000 miles I'd get anyway), I finally decided to pull the trigger. It'll be cheaper than the family wagon on the drive currently and I won't have to worry about any unexpected maintenance for the next 3 years which is nice. It's poverty spec, I couldn't even get it in not-white, but I'm looking forward to the change.

There's plenty of lease companies who bought with the expectation of leasing them and are left holding stock. I heard of one person taking collection of their "new car" that was first registered in Nov last year. You might want to double check on that if it bothers you, just don't accept they're passing on some great offer to you out the goodness of their heart, they probably have cars they need to shift. That all said, if you gain from there problem, fill your boots

Given the timing of the offer, I suspect they will be March 2023 cars registered to coincide with Tesla's Q1 (which is where the 3,000 supercharging miles come from). Given the number of MYs appearing on the roads, I don't think many are sitting around for 5 months, but even if it was, at least a 2022 car would have proper parking sensors so it would probably be better

[Heres Johnny]

AyBee said:

Given the timing of the offer, I suspect they will be March 2023 cars registered to coincide with Tesla's Q1 (which is where the 3,000 supercharging miles come from). Given the number of MYs appearing on the roads, I don't think many are sitting around for 5 months, but even if it was, at least a 2022 car would have proper parking sensors so it would probably be better

You could be right, we saw a small number of cars get listed in the early hours at extra large discounts, selling quickly. I provide notifications to a number of dealers so they’re made aware, similar service is available to the public, it’s unlikely Tesla list a car anywhere in the world we’re not aware of. On the flip side there were however free miles last years too. I’m just sharing the knowledge on one scenario, up to you whether you want to act on it.

[AyBee]

Appreciated, thanks.

[christhreadgill]

Anybody dealing with "CLM Fleet Management" at all? I've been signed up to an initial "Personal Shopping" call with them, as the appointed Salary Sacrifice Car Scheme via my employer. Just seeing if anyone has any experience with them at all.

Currently on a Car Allowance of £6,500pa with a Fuel Card and personal mileage deductions. Allowance increases to £7,000pa if I go for the Salary Sacrifice option, but I loose the Fuel Card, and have to claim back business miles at HMRC Advisory Rate + 15p. I also only have the option to choose a car with <= 75kg/km CO2, so be interesting to see what's in the catalogue.

HR has done a fancy Excel spreadsheet where I can input my current personal car costs, and then input the items from the CLM quote, and it brings up 2 payslips to compare real-world financial implications at the end of each month, if I were to take the sacrifice option.

Current personal car costs me about £5,500-£6,000 a year all in (PCP, fuel deductions, tax, insurance, maintenance etc) so will be interesting to see how it all stacks up and if it's worth it at all, based on a 15,000-20,000 mileage allowance per year.

[z4RRSchris]

hmrc fked up our taxcodes so where we ticked the box for zero emissions, they took that as zero emissions data and are now charging me 35% bik.

thanks hmrc

[James6112]

My company had a conference call yesterday, to hear about the lease gouging offers, the lease company doing a presentation.
Eg a Tesla, after the 40% tax taken off, was about £75 less than the joe public price with Tesla.
Company keeping the NI.

It didn’t go down too well when employees were posting links to lease comparison sites into the chat!

I’ll pass on the kind offer.

[BMR]

Just had Tesla’s added to our scheme which has been running for about a year

A MY RWD works out about £560 a month after savings on 10k a year.

Just not sure if times right to pull trigger on an EV for me and my circumstances at present.

[SWoll]

BMR said:

Just had Tesla’s added to our scheme which has been running for about a year

A MY RWD works out about £560 a month after savings on 10k a year.

Just not sure if times right to pull trigger on an EV for me and my circumstances at present.

10k a year would suggest you don't do a lot of long trips, are you able to charge at home?

[BMR]

Yes absolutely, it’s not so much the mileage it’s that my wife tows a horsebox and me a track car. MY can tow 1600kg I believe, but for ease of towing journeys I might be better sticking with my diese Volvo &#128514;

[SWoll]

BMR said:

Yes absolutely, it’s not so much the mileage it’s that my wife tows a horsebox and me a track car. MY can tow 1600kg I believe, but for ease of towing journeys I might be better sticking with my diese Volvo ??

They can tow, but the efficiency/range will be woeful. You could easily be looking at < 100 miles to a full charge.

[PushedDover]

Dont forget - it'll cost circa £1k to put the tow bar on the Tesla.

FWIW, we have one - my OH is not convinced on using it to tow her 506 box and her 17h horse with regards to towing capacities. Takes my AllRoad all the time instead....

also to note, the MY has become our default car to get in and use. However, just noticed this week, 14 months in to our 48yr 12,000 miles per year lease - the car has just over 19,000 miles on it.

I would not underestimate the usage

[PistonTim]

Can someone give me a steer here?

I am expecting to lose £7,500 of my personal allowance this year (at £1 loss at £2 over).

Therefore this costs me effectively £625 a month.

If I take a SS car which has an arbitrary net of e.g. £625 (£1,000 gross) a month then as the calculations dont factor in the loss of personal allowance this car is basically free of charge or at least zero?

Have I got that right?

[AyBee]

PistonTim said:

Can someone give me a steer here?

I am expecting to lose £7,500 of my personal allowance this year (at £1 loss at £2 over).

Therefore this costs me effectively £625 a month.

If I take a SS car which has an arbitrary net of e.g. £625 (£1,000 gross) a month then as the calculations dont factor in the loss of personal allowance this car is basically free of charge or at least zero?

Have I got that right?

In short, no. Losing your allowance just means you pay tax on that amount, it's no longer tax free.

The way I'd look at it:
Salary: £115k - so you're effectively paying 60% tax on £15k (40% normal, plus loss of allowance). If you took a salary sacrifice car at a gross value of £15k per year, you would essentially get a car at 60% off the gross amount, but you'd still pay the 40%, so instead of the car costing £15k, it'll cost you £6k. If you don't want a car, pay more into your pension unless you need the money.

I'm in a similar situation to you. I've been paying heavily into my pension historically to avoid paying 60% tax, but then realised that a Tesla MY with a c.60% discount was basically cheaper than my existing car when I took into account depreciation, much cheaper fuel, maintenance, insurance etc, so now I'll pay a bit less into my pension but have a cheap, no hassle car on the drive instead.

[PistonTim]

AyBee said:

PistonTim said:

Can someone give me a steer here?

I am expecting to lose £7,500 of my personal allowance this year (at £1 loss at £2 over).

Therefore this costs me effectively £625 a month.

If I take a SS car which has an arbitrary net of e.g. £625 (£1,000 gross) a month then as the calculations dont factor in the loss of personal allowance this car is basically free of charge or at least zero?

Have I got that right?

In short, no. Losing your allowance just means you pay tax on that amount, it's no longer tax free.

The way I'd look at it:
Salary: £115k - so you're effectively paying 60% tax on £15k (40% normal, plus loss of allowance). If you took a salary sacrifice car at a gross value of £15k per year, you would essentially get a car at 60% off the gross amount, but you'd still pay the 40%, so instead of the car costing £15k, it'll cost you £6k. If you don't want a car, pay more into your pension unless you need the money.

I'm in a similar situation to you. I've been paying heavily into my pension historically to avoid paying 60% tax, but then realised that a Tesla MY with a c.60% discount was basically cheaper than my existing car when I took into account depreciation, much cheaper fuel, maintenance, insurance etc, so now I'll pay a bit less into my pension but have a cheap, no hassle car on the drive instead.

Thank you, so this is the breakdown BUT it doesnt factor in the £100k plus:

Hyundai Tucson SUV 4wd 1.6T-GDi PiH 13.8kWh 265 GPF SS EU6 Ultimate Auto6

Monthly amount:£836
Employer contribution:-£23
Monthly gross reduction :£813
Income Tax saving:-£325
National Insurance saving:-£16
Benefit in Kind: +£183
Effect on take home pay: £654

So I'd pay £334 for this in 'real' terms? 40% of the monthly amount?

Edited by PistonTim on Friday 5th May 18:09

[BMR]

PushedDover said:

Dont forget - it'll cost circa £1k to put the tow bar on the Tesla.

FWIW, we have one - my OH is not convinced on using it to tow her 506 box and her 17h horse with regards to towing capacities. Takes my AllRoad all the time instead....

also to note, the MY has become our default car to get in and use. However, just noticed this week, 14 months in to our 48yr 12,000 miles per year lease - the car has just over 19,000 miles on it.

I would not underestimate the usage

I spotted the price tag as it’s an available option when speccing the car via lease plan.

There does seem to be minimal differences between different mileages per year on the lease so I think it’s definitely better to over estimate. As opposed to the 14.71p per mile extra.

I think the efficiency when towing and the fact it’d be a PITA to stop and charge whilst towing would stop me right now. I might convince the wife that we’ll buy and old Touareg to tow and have something more fun but EV for other journeys.

[Silenoz]

I've been looking at the salary sacrifice scheme at work and today I think I've found an amazing deal. A Mercedes EQE 350 AMG Line on 36 months 12k pa, net cost to me £637 per month. For context a Tesla M3 SR+ in vanilla is £598 per month. Very tempted by the EQE, but will need to go and see one as the reviews are mixed. Autocar not impressed but Top Gear give it a good write up.

[z4RRSchris]

PistonTim said:

Thank you, so this is the breakdown BUT it doesnt factor in the £100k plus:

Hyundai Tucson SUV 4wd 1.6T-GDi PiH 13.8kWh 265 GPF SS EU6 Ultimate Auto6

Monthly amount:£836
Employer contribution:-£23
Monthly gross reduction :£813
Income Tax saving:-£325
National Insurance saving:-£16
Benefit in Kind: +£183
Effect on take home pay: £654

So I'd pay £334 for this in 'real' terms? 40% of the monthly amount?

Edited by PistonTim on Friday 5th May 18:09

the “real” terms is already taken out. it’s that -325.

you do £813 *.435 or *.635

then plus the BIK

[PistonTim]

z4RRSchris said:

PistonTim said:

Thank you, so this is the breakdown BUT it doesnt factor in the £100k plus:

Hyundai Tucson SUV 4wd 1.6T-GDi PiH 13.8kWh 265 GPF SS EU6 Ultimate Auto6

Monthly amount:£836
Employer contribution:-£23
Monthly gross reduction :£813
Income Tax saving:-£325
National Insurance saving:-£16
Benefit in Kind: +£183
Effect on take home pay: £654

So I'd pay £334 for this in 'real' terms? 40% of the monthly amount?

Edited by PistonTim on Friday 5th May 18:09

the “real” terms is already taken out. it’s that -325.

you do £813 *.435 or *.635

then plus the BIK

So that would be £536 take home change then as I’m over the £100k threshold?

Sorry for all the questions!

[SWoll]

https://www.thesalarycalculator.co.uk/salary.php

https://comcar.co.uk/taxtools/salarysacrifice/

Using those 2 should answer all of your questions?