Salary Sacrifice - Ioniq 5

Author
Discussion

snotrag

14,465 posts

212 months

Friday 12th August 2022
quotequote all
That sounds absolutely horrendous value for money.


You reckon your 320D cosat 600 this month to fix. So thats equal.

If it doesnt need anything next month, your 600 quid up. The month after, 1200 quid. The month after that...

Take the 1800 quid and buy an MX-5 to prat about in and enjoy driving. Which is vastly more environmentally sound than having a new car made for you.



SWoll

18,442 posts

259 months

Friday 12th August 2022
quotequote all
bmwmike said:
bonkers. Everyone's different I know, but i'd rather own a banger outright and spend the difference on holidays than fork out 900 quid a month. Maybe i'm old fashioned but thats mortgage money not car money.
All relative.

Needs to be considered as % of income as plenty are in the fortunate position to afford to pay that, a signifcantly larger mortgage, and still have multiple holidays.

The fact that it's become significantly poorer value over such a short period due to very obvious price gouging by providers and manufacturers is what I object to.

I've see lease and saalary sacrifice costs of 80%+ of the list price over 4 years. As an exampe someone posted a 4 year 40k mile SS quote for an i4 M50 on another thread a while back. £1250 a month gross cost, so £60k over te term. For a car listing at £64k..

Edited by SWoll on Friday 12th August 14:22

bmwmike

6,954 posts

109 months

Friday 12th August 2022
quotequote all
snotrag said:
That sounds absolutely horrendous value for money.


You reckon your 320D cosat 600 this month to fix. So thats equal.

If it doesnt need anything next month, your 600 quid up. The month after, 1200 quid. The month after that...

Take the 1800 quid and buy an MX-5 to prat about in and enjoy driving. Which is vastly more environmentally sound than having a new car made for you.
In bold - well said, a vastly underrepresented viewpoint IMO.

SWoll

18,442 posts

259 months

Friday 12th August 2022
quotequote all
bmwmike said:
snotrag said:
That sounds absolutely horrendous value for money.


You reckon your 320D cosat 600 this month to fix. So thats equal.

If it doesnt need anything next month, your 600 quid up. The month after, 1200 quid. The month after that...

Take the 1800 quid and buy an MX-5 to prat about in and enjoy driving. Which is vastly more environmentally sound than having a new car made for you.
In bold - well said, a vastly underrepresented viewpoint IMO.
Ask 100 EV drivers why they went that route and 90 will confirm it's for tax/fuel savings. Of the 10 that tell you they did it for environmental reasons, 5 will by lying. smile

The idea that EV drivers are tree huggers is laughable, at most it allows bonus virtue points and smugness for some once they've realised how much it will save them.

SS really makes sense fo those earning £100-125k due to the tax savings. A £110k Porsche Taycan GTS can be had for around £500 a month..

Meerkat88

Original Poster:

17 posts

53 months

Friday 12th August 2022
quotequote all
I've always been cautious when it comes to money, which is good because I'm financially stable in a good job and have no debt (apart from student loans, but that doesn't really count). Mortgage gets paid on time and I've never had any credit issues. But the way things are looking (rate of inflation, price rises everywhere), I am very uncertain how the next 3 months are going to pan out, let alone the next 4 years!

Yes I could pay X amount per month on a car, but then I wouldn't have the extra security of the extra money in my bank (which I can transfer to a savings account to keep for a rainy day or an amazing summer holiday next year).

I think I've answered my own question now - stick with what I have and wait for the storm to blow over, at which point prices should hopefully be lower and availability should have increased with no stupid lead times. I do recall years ago that SS provided amazing deals and you could get a brand new car for pittance, but everyone cottoned on and now it's just another name for a standard lease with no financial benefits (unless you are jumping inbetween tax brackets).

Thanks everyone for your comments! Time to give the BMW a bit of love and get it running smoothly - with any luck nothing else expensive breaks in the next year or so!

WelshRich

377 posts

58 months

Friday 12th August 2022
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I’m in a very similar position to the OP and wasn’t even considering a new car until my company announced a SS scheme with Octopus.

It definitely seems that the leasing company keep some of the tax savings for themselves, they make it cheaper than a private lease but it’s not 40% less…

For me, being totally honest, part of the motivation was the thought that at least I’d be reducing my tax burden “a bit”. I’m in the fortunate position that I earn enough to pay a lot of tax but I may regret in future years that I chose to offset some of it against a nice car, rather than up my pension contributions instead!

P.S. For the OP, I also wanted an Ioniq 5 but I thought that if I was going to go EV, I wanted it to be a quick one! Lead times for the dual motor Ioniq 5 were ridiculous and for much the same cost I’ve been able to order an i Pace instead which should be delivered about 4 months from the date of placing the order…

blueg33

35,987 posts

225 months

Friday 12th August 2022
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J1990 said:
£600 net monthly for 8k/year sounds insane... I believe you could PCP the car for practically the same and at least have some equity in it at the end or hand it back if that's not the case, but either way be in full control and not tied in to a company scheme that's providing zero financial benefit.
I am being quoted £850 per month PCP on Ioniq 5, 25k miles pas, 48 months, deposit £7k, balloon circa £13k

JackReacher

2,130 posts

216 months

Friday 12th August 2022
quotequote all
I had a look at my car scheme and the after tax cost for the same spec is close to £600 a month after tax based on a 40% tax rate, so your quote is fair. But an id3 pro-performance on the same scheme is £350 a month all in.

It's very subjective , but I really disliked the interior quality of the Hyundai, fine in a cheap car but it's a very expensive car.

£600 a month on a personal loan over 4 years would give you £27k to spend, and you'd own the car outright at the end.

I think I'll pull out of the car scheme when my current i3 comes to an end in December, the current lease prices are just too high to justify even with the tax advantages.


blueg33

35,987 posts

225 months

Friday 12th August 2022
quotequote all
JackReacher said:
I had a look at my car scheme and the after tax cost for the same spec is close to £600 a month after tax based on a 40% tax rate, so your quote is fair. But an id3 pro-performance on the same scheme is £350 a month all in.

It's very subjective , but I really disliked the interior quality of the Hyundai, fine in a cheap car but it's a very expensive car.

£600 a month on a personal loan over 4 years would give you £27k to spend, and you'd own the car outright at the end.

I think I'll pull out of the car scheme when my current i3 comes to an end in December, the current lease prices are just too high to justify even with the tax advantages.
Interesting. I am buying a Ioniq 5 Project 45 and I wouldnt say the interior is cheap at all, especially the heated ventilated piped leather seats, lack of rattles and squeaks etc

The Polsetar I tried felt like a base Audi A3 in terms of seats and materials, noticeably more down market than my current Volvo V60

JackReacher

2,130 posts

216 months

Friday 12th August 2022
quotequote all
blueg33 said:
JackReacher said:
I had a look at my car scheme and the after tax cost for the same spec is close to £600 a month after tax based on a 40% tax rate, so your quote is fair. But an id3 pro-performance on the same scheme is £350 a month all in.

It's very subjective , but I really disliked the interior quality of the Hyundai, fine in a cheap car but it's a very expensive car.

£600 a month on a personal loan over 4 years would give you £27k to spend, and you'd own the car outright at the end.

I think I'll pull out of the car scheme when my current i3 comes to an end in December, the current lease prices are just too high to justify even with the tax advantages.
Interesting. I am buying a Ioniq 5 Project 45 and I wouldnt say the interior is cheap at all, especially the heated ventilated piped leather seats, lack of rattles and squeaks etc

The Polsetar I tried felt like a base Audi A3 in terms of seats and materials, noticeably more down market than my current Volvo V60
It is very subjective of course, the ionic 5 was a "premium" which I think is the lowest of the 3 specs. Not sure if other specs are better? I had a Polestar 2 recently on demo and much preferred it, so that just shows how subjective it is if you think the opposite. But also the Polestar is cheaper on my scheme than the Hyundai. Both were less good than my current BMW though in terms of interior fit and finish.

blueg33

35,987 posts

225 months

Friday 12th August 2022
quotequote all
JackReacher said:
It is very subjective of course, the ionic 5 was a "premium" which I think is the lowest of the 3 specs. Not sure if other specs are better? I had a Polestar 2 recently on demo and much preferred it, so that just shows how subjective it is if you think the opposite. But also the Polestar is cheaper on my scheme than the Hyundai. Both were less good than my current BMW though in terms of interior fit and finish.
ASh. Yes the premium doesn't feel very ...er...premium

I tested an Ultimate but am buying a Project 45 which is higher spec agian

TheDrownedApe

1,036 posts

57 months

Friday 12th August 2022
quotequote all
OP I've commented on various SS threads. Its still chase the deal not the car.

Just signed up for a c40 recharge and will cost me 440 ish a month. That's for 36/10k with insurance and maintenance. EVERY other car was more expensive in including those with p11d prices 10-12k cheaper. As a. Example the born is a 37k p11d car and it was about 450 a month. Other cars such as ionic 5 and ev 6 were about 600 a month.

Mine is with Novuna however so can't comment what would be cheap, if any, on octopus

blueg33

35,987 posts

225 months

Friday 12th August 2022
quotequote all
TheDrownedApe said:
OP I've commented on various SS threads. Its still chase the deal not the car.

Just signed up for a c40 recharge and will cost me 440 ish a month. That's for 36/10k with insurance and maintenance. EVERY other car was more expensive in including those with p11d prices 10-12k cheaper. As a. Example the born is a 37k p11d car and it was about 450 a month. Other cars such as ionic 5 and ev 6 were about 600 a month.

Mine is with Novuna however so can't comment what would be cheap, if any, on octopus
Chasing the deal is good advice

SWoll

18,442 posts

259 months

Friday 12th August 2022
quotequote all
blueg33 said:
TheDrownedApe said:
OP I've commented on various SS threads. Its still chase the deal not the car.

Just signed up for a c40 recharge and will cost me 440 ish a month. That's for 36/10k with insurance and maintenance. EVERY other car was more expensive in including those with p11d prices 10-12k cheaper. As a. Example the born is a 37k p11d car and it was about 450 a month. Other cars such as ionic 5 and ev 6 were about 600 a month.

Mine is with Novuna however so can't comment what would be cheap, if any, on octopus
Chasing the deal is good advice
If you don't mind being stuck in a car you might not like very much for 3-4 years and 30-50k miles. I'd happily pay a bit more to avoid that personally, but each to their own.

blueg33

35,987 posts

225 months

Friday 12th August 2022
quotequote all
SWoll said:
If you don't mind being stuck in a car you might not like very much for 3-4 years and 30-50k miles. I'd happily pay a bit more to avoid that personally, but each to their own.
I was thinking more same car but shop around for deals

TheDrownedApe

1,036 posts

57 months

Saturday 13th August 2022
quotequote all
SWoll said:
If you don't mind being stuck in a car you might not like very much for 3-4 years and 30-50k miles. I'd happily pay a bit more to avoid that personally, but each to their own.
No one is forcing you to sign up to a car you don't like

SWoll

18,442 posts

259 months

Saturday 13th August 2022
quotequote all
blueg33 said:
SWoll said:
If you don't mind being stuck in a car you might not like very much for 3-4 years and 30-50k miles. I'd happily pay a bit more to avoid that personally, but each to their own.
I was thinking more same car but shop around for deals
How is he going to do that with a company salary sacrifice scheme? You arenlt ging to find a personal lease cheaper and the price is the price.

TheDrownedApe said:
No one is forcing you to sign up to a car you don't like
That's what chasing the deal and not the car is. Been following the best lease car deals thread for long enough to know that people will sign up for almost anything if it's cheap enough whether they particularly like it or not. It's fair enough if only concerned with white good transport but not something I'd promote personally as 3-4 years is a long time in a car you aren't keen on for the sake of £100 a month.

raspy

1,497 posts

95 months

Saturday 13th August 2022
quotequote all
TheDrownedApe said:
OP I've commented on various SS threads. Its still chase the deal not the car.

Just signed up for a c40 recharge and will cost me 440 ish a month. That's for 36/10k with insurance and maintenance. EVERY other car was more expensive in including those with p11d prices 10-12k cheaper. As a. Example the born is a 37k p11d car and it was about 450 a month. Other cars such as ionic 5 and ev 6 were about 600 a month.

Mine is with Novuna however so can't comment what would be cheap, if any, on octopus
OP chase what you want, whether it's the deal, the car etc - As long as you are living within your means and it's the car that YOU want, go for it!

Life is so short and tragically unpredictable, that when it comes to our last days, we won't be dwelling on whether we did contract hire, pcp, or got a deal that wasn't the best value on the market.

rugbyleague

260 posts

77 months

Saturday 13th August 2022
quotequote all
Watching this thread with interest, my company has also released a Salary sacrifice scheme which is interesting me.

HYUNDAI IONIQ 5 ELECTRIC HATCHBACK (2021) 239kW Ultimate 77 kWh 5dr AWD Auto [Tech] = £560 per month, 3 years 10000 miles PA no deposit, insurance/breakdown/maintenance all included.

No impact to pension.

Looking at direct comparisons the best I can get is £800per month (no insurance, maintenance or breakdown) and a 6k deposit required.

£560*12*3 equals 20k for 3 years so would the money be better spent elsewhere?

SWoll

18,442 posts

259 months

Saturday 13th August 2022
quotequote all
rugbyleague said:
Watching this thread with interest, my company has also released a Salary sacrifice scheme which is interesting me.

HYUNDAI IONIQ 5 ELECTRIC HATCHBACK (2021) 239kW Ultimate 77 kWh 5dr AWD Auto [Tech] = £560 per month, 3 years 10000 miles PA no deposit, insurance/breakdown/maintenance all included.

No impact to pension.

Looking at direct comparisons the best I can get is £800per month (no insurance, maintenance or breakdown) and a 6k deposit required.

£560*12*3 equals 20k for 3 years so would the money be better spent elsewhere?
You can get it on those terms for £800 a month without the deposit, but you certainly won't get anywhere near the quote you have with a personal lease. https://leasing.com/independent-brokers/icarlease/...

10% cheaper, 1 year less commitment and 25% more annual mileage than the OP's figures, so seems a decent deal.

Edited by SWoll on Saturday 13th August 18:21