Salary Sacrifice EV

[sufcfan1]

So my employer has just launched a salary sacrifice scheme for EVs, and I think it’s a great deal, but I’m not sure if my man maths is getting the better of me or not.

For example Skoda Enyaq 60 Suite is one I had my eye on, good range, nice practical family car, zero deposit, and once all the tax savings etc are taken in, would cost me £360 a month, with 12000 miles pa.
This includes all servicing, repairs, tyres and insurance on a 36 month lease.
Once I add in the fuel saving it’s starting to look like good value.

Do those in the know think this is good, bad or indifferent?

[MrsMiggins]

I'm in the same position as you and rolling all the car costs into a single payment is making it look like a good deal.

My company is using Tusker. Is it the same for you?

[sufcfan1]

Zenith Leasing

[anonymous-user]

Check the implications for your pension if you have one in a company scheme. Salary sacrifice can hurt your pension payments significantly depending on how the schemes are structured.

[dave_s13]

As said ...it's the pension implications that are key. But they are really difficult to work out.

It's the reason I don't have a salary sacrifice ev through work (NHS). It seems almost impossible to work out exactly what the long term cost implications are so I'm erring on the side of caution

[sufcfan1]

Thanks, from the documents it looks like my pension is worked out pre deductions/sacrifice so all good on that point.

Just got a new role so trying to mitigate the 52% tax rate in currently sat in, got to love the Scottish tax system.

[Andy_290]

Having initially suggested and then been responsible for the onboarding of the implementation of the EV SS scheme at for the company I work at over the last 5 months (with Tusker) I can help here

I've knocked up a quick quote on my tusker portal for you and that car (in energy blue) is coming out at £363 net for me, obviously quotes vary from user to user depending upon your location regarding insurance but it's still good value when you consider the insurance, tyres, maintenance + lifestyle protection elements, plus the lack of initial deposit.

There are sweet spots and some vehicles which are not so good value (i.e. Teslas) on the scheme but the Enyac looks decent to me.

The cheapest deal I can find on an Enyac on LeaseLoco is a smidge over £400/m but that's clearly just the car, non-maintained and without the additional elements you'll get from the EV SS scheme

I have (last week) taken delivery of an EQC on the scheme and can't believe how good value it is (£607/m) for a £73k car.

As others have mentioned, consider the impact on your pension, however our pension scheme is also salary sacrifice so no impact, but you may want to make additional contributions to cover the shortfall, this is outweighed by the benefits of the scheme in my opinion though.

Edited by Andy_290 on Saturday 5th June 07:43

Edited by Andy_290 on Saturday 5th June 07:44

[Meeten-5dulx]

I too have been looking.
Funny, based in Scotland, same provider, not the 52pc band.....

Short list for me is
Enyaq or q4etron .....

Tesla 3 or polestar 2.

Had a look at the Taycan, the cheapest was 707. Model S was circa 840.

Going to Livingston to test drive a Polestar 2 next weekend.
Q4 Etron are not available at dealers till of of June.

[sufcfan1]

Thanks all for your input, always appreciate some real world experience.

Just dug out my pension info, and that’s salary sacrifice too, so no impact there.

Think I’ll make an appointment at the Skoda garage and get in a car and see what’s it like.

[sufcfan1]

Meeten-5dulx said:

I too have been looking.
Funny, based in Scotland, same provider, not the 52pc band.....

Short list for me is
Enyaq or q4etron .....

Tesla 3 or polestar 2.

Had a look at the Taycan, the cheapest was 707. Model S was circa 840.

Going to Livingston to test drive a Polestar 2 next weekend.
Q4 Etron are not available at dealers till of of June.

I had a look at most of the family sized cars, and the Tesla’s just seem really expensive, and I think the Audi is also based on the ID4 platform, so should be very similar.

The Polestar looks like a very good car, but again, maybe a bit more than I was looking to spend. And if I turned up in a Porsche, I’d be out the house!!

The 52% band is an anomaly of the Scottish system, 40% income tax over £43000 ish but the 12% NI rate doesn’t drop till £50000.

[SWoll]

Andy_290 said:

Having initially suggested and then been responsible for the onboarding of the implementation of the EV SS scheme at for the company I work at over the last 5 months (with Tusker) I can help here

I've knocked up a quick quote on my tusker portal for you and that car (in energy blue) is coming out at £363 net for me, obviously quotes vary from user to user depending upon your location regarding insurance but it's still good value when you consider the insurance, tyres, maintenance + lifestyle protection elements, plus the lack of initial deposit.

There are sweet spots and some vehicles which are not so good value (i.e. Teslas) on the scheme but the Enyac looks decent to me.

The cheapest deal I can find on an Enyac on LeaseLoco is a smidge over £400/m but that's clearly just the car, non-maintained and without the additional elements you'll get from the EV SS scheme

I have (last week) taken delivery of an EQC on the scheme and can't believe how good value it is (£607/m) for a £73k car.

As others have mentioned, consider the impact on your pension, however our pension scheme is also salary sacrifice so no impact, but you may want to make additional contributions to cover the shortfall, this is outweighed by the benefits of the scheme in my opinion though.

Edited by Andy_290 on Saturday 5th June 07:43

Edited by Andy_290 on Saturday 5th June 07:44

The EQC does look exceptional value at the moment with 3 year, 30k leases come in at around 38% of list. The Polestar is around 50% and Tesla approaching 60%, which is absurd IMHO.

Definitely the pick if the bunch if you're after a premium EV at current prices.

I'm trying to push our fleet team do do the same with SS at the minute so any tips/advice gratefully received.

Edited by SWoll on Saturday 5th June 09:28

[Meeten-5dulx]

sufcfan1 said:

Meeten-5dulx said:

I too have been looking.
Funny, based in Scotland, same provider, not the 52pc band.....

Short list for me is
Enyaq or q4etron .....

Tesla 3 or polestar 2.

Had a look at the Taycan, the cheapest was 707. Model S was circa 840.

Going to Livingston to test drive a Polestar 2 next weekend.
Q4 Etron are not available at dealers till of of June.

I had a look at most of the family sized cars, and the Tesla’s just seem really expensive, and I think the Audi is also based on the ID4 platform, so should be very similar.

The Polestar looks like a very good car, but again, maybe a bit more than I was looking to spend. And if I turned up in a Porsche, I’d be out the house!!

The 52% band is an anomaly of the Scottish system, 40% income tax over £43000 ish but the 12% NI rate doesn’t drop till £50000.

Don’t write off the Audi.
Add in some options in the enyaq (heat pump, cameras) and you are not too far from the q4 edition 1....
If keeping it for 3yrs I’d rather spend the extra in having a car I’m comfortable with as getting out of it will not be cheap.

Polestar was working out circa 420 for my spec.

[Heres Johnny]

If you do a lot of business miles, you might need to consider the HMRC approved reimbursement rate which is 4p a mile. if it was your own car you can claim up 45p a miles if thats what your employer pays, or the employer rate + tax savings on the dffierence to 45p. This and pension complexity tend to be the only 2 issues plus the fact you're probably locked into the car until the end of term. Some employers also have hefty penalties if you decide to leave.

[Tophatron]

Funnily enough, my company is looking into the possibility of a Salary Sacrifice EV scheme too.

I take it the leasing outfits have different prices for different companies? I was trying to find some example price lists to see what might be available but have been struggling so far.

[SWoll]

Tophatron said:

Funnily enough, my company is looking into the possibility of a Salary Sacrifice EV scheme too.

I take it the leasing outfits have different prices for different companies? I was trying to find some example price lists to see what might be available but have been struggling so far.

No reason for prices to differ between companies, unless they are gouging again due to the popularity and tax benefits?

[Tophatron]

SWoll said:

No reason for prices to differ between companies, unless they are gouging again due to the popularity and tax benefits?

You'd hope not but I guess there might be better prices if they're supplying bigger companies?

I'd certainly be interested to hear if anyone has prices for a 500e La Prima, or if there are any other particular good deals at the moment for other cars?

[Timbo_S2]

Ours is launching this month, so waiting to see details. I've had confirmation it won't affect my pension contributions, and I get a £800pm cash allowance.
Thoughts are the cheapest EV I can, and me and the wife use it for everything we can, keeping a fun car and family bus. Or go for the Tesla / Taycan etc...

See what the numbers look like!

[SWoll]

Timbo_S2 said:

Ours is launching this month, so waiting to see details. I've had confirmation it won't affect my pension contributions, and I get a £800pm cash allowance.
Thoughts are the cheapest EV I can, and me and the wife use it for everything we can, keeping a fun car and family bus. Or go for the Tesla / Taycan etc...

See what the numbers look like!

Be interested in what that £800 a month gets you. If that's got to cover the cost of the lease + insurance + maintenance then i think a Taycan is going to be out of reach and you'll be looking at Model 3 SR+ or Polestar 2 RWD, but you never know.

[james6546]

I'm also looking at this if I ever end up travelling for work again.

Ours is also with Tusker and I can get a Polestar 2 which works out at £564 a month (I'm not in the higher tax bracket so doesn't work out as well for me)

Thats 12500 miles a year with £900 paint and no other options. The dual motor one.

I am tempted as my company pays 45p a mile regardless

[SWoll]

james6546 said:

I'm also looking at this if I ever end up travelling for work again.

Ours is also with Tusker and I can get a Polestar 2 which works out at £564 a month (I'm not in the higher tax bracket so doesn't work out as well for me)

Thats 12500 miles a year with £900 paint and no other options. The dual motor one.

I am tempted as my company pays 45p a mile regardless

The 45p a mile thing is another benefit of SS I believe. If you're doing 10k business miles per year and doing all of your charging at home on a decent tariff you could be claiming back at least 40p per mile more than it's costing you, so £4k+ a year.

In that case the car would be costing you < £250 a month, a no brainer I'd have thought?