Salary Sacrifice - Ioniq 5
Discussion
Plus the BIK tax (small, but adds to the cost)
“ Unlike some other benefits that you might take through salary sacrifice, an electric vehicle isn’t taxed based on the salary that you give up: instead you pay tax on the value of the benefit in kind (BIK) tax. BIK is the value of the benefit you receive – in this case, a car. It’s what has helped make salary sacrifice the cheapest way to own an electric car. For battery-electric cars, BIK tax is 1% for 2021/22, and 2% for 2022/23.”
“ Unlike some other benefits that you might take through salary sacrifice, an electric vehicle isn’t taxed based on the salary that you give up: instead you pay tax on the value of the benefit in kind (BIK) tax. BIK is the value of the benefit you receive – in this case, a car. It’s what has helped make salary sacrifice the cheapest way to own an electric car. For battery-electric cars, BIK tax is 1% for 2021/22, and 2% for 2022/23.”
Edited by James6112 on Sunday 14th August 07:10
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.
Can we also put that it's £28,800 over 4 years to do a max of 32,000 miles. 90 pence a mile.
No idea what your energy bill would be. Call it £1 a mile.
Personally if it were me. No.
AudiSport said:
28k to drive an EV over 4 - years?!!! Just buy something diesel outright and save some money!
Just buy a motorbike and save some money!Just buy a bus pass and save some money!
Just walk and save some money!
Never understood these responses - the only valid comparison is to another brand new car with an equivalent spec/performance surely.
Toaster Pilot said:
AudiSport said:
28k to drive an EV over 4 - years?!!! Just buy something diesel outright and save some money!
Just buy a motorbike and save some money!Just buy a bus pass and save some money!
Just walk and save some money!
Never understood these responses - the only valid comparison is to another brand new car with an equivalent spec/performance surely.
SWoll said:
Don't agree in this case. The OP is considering the value of taking on a SS EV as a company car for what appears to be very limited use. Suggesting alternatives that would be a better suited to the task or considerably cheaper seems valid in this case to me.
Exactly. Quick commercial review, and my response.Toaster Pilot said:
Just buy a motorbike and save some money!
Just buy a bus pass and save some money!
Just walk and save some money!
Never understood these responses - the only valid comparison is to another brand new car with an equivalent spec/performance surely.
My reply wasn’t a ‘valued response’? It’s a forum, where people come for input, reply’s and feedback. Nothing right, or wrong, just feedback. Get over yourself.Just buy a bus pass and save some money!
Just walk and save some money!
Never understood these responses - the only valid comparison is to another brand new car with an equivalent spec/performance surely.
I've seen a lot of different responses over the past few pages - the general consensus is that the deal I was offered is a bad one (which I agree with).
I spent saturday going round 5-6 dealers and seeing what they could offer - they pretty much all said the same thing (lead times are shocking on anything new and prices are inflated). Also, I didn't see much that caught my eye.
I have therefore come up with a plan that makes the most financial sense - as long as my car is fixable (ie the ABS module can be fixed and I dont need to spend 2k on a new one), I will drive it until it dies. I will ask the garage doing the work atm to do a health check on the clutch - I'm 80% sure the clutch release bearing is on it's way out so just want to see what they think and how long they reckon it would last. As long as the car passes the mot in Nov, I will get the clutch replaced (I don't want to spend loads of money if it's not worth it).
This plan is the cheapest solution - it sits on the drive for 5-6 days of the week so a new car would be wasted right now. If my situation changes (new house/job/child etc), I shall re-evaluate my position and perhaps get a new car at that point. If it turns out that the BMW is at the end of it's life in Nov, I shall bring forward my plans and look around for something that suits my budget.
The chip shortage is causing havoc for everyone and it's not going to be fixed overnight. If I wait long enough, then I can put a decent amount of cash into a savings pot and be in a good enough position to ride out this impending storm and come out the other side without too many issues. I have always tried to be sensible with money, but I will spend it if it's required. The other advantage of waiting a little while is that lead times should come down to 2-3 months and prices should have stabilised (or gone down to what they should be).
I adopted the shedding life years ago (I didn't choose to, it just sort of happened gradually) but PH people seem to be split (some love it, some think that a new car every few years is the best way). I will do what makes the most sense to me and doesn't leave me high and dry at the end of every month. The fact that I don't go many places right now means that having something shiny on the drive isn't a necessity (its a want rather than a need). Plus if leccy bills rise to 5k a year and there are rolling blackouts because the grid can't handle the demand, having something that I can fill with petrol/diesel makes so much more sense to me!
I spent saturday going round 5-6 dealers and seeing what they could offer - they pretty much all said the same thing (lead times are shocking on anything new and prices are inflated). Also, I didn't see much that caught my eye.
I have therefore come up with a plan that makes the most financial sense - as long as my car is fixable (ie the ABS module can be fixed and I dont need to spend 2k on a new one), I will drive it until it dies. I will ask the garage doing the work atm to do a health check on the clutch - I'm 80% sure the clutch release bearing is on it's way out so just want to see what they think and how long they reckon it would last. As long as the car passes the mot in Nov, I will get the clutch replaced (I don't want to spend loads of money if it's not worth it).
This plan is the cheapest solution - it sits on the drive for 5-6 days of the week so a new car would be wasted right now. If my situation changes (new house/job/child etc), I shall re-evaluate my position and perhaps get a new car at that point. If it turns out that the BMW is at the end of it's life in Nov, I shall bring forward my plans and look around for something that suits my budget.
The chip shortage is causing havoc for everyone and it's not going to be fixed overnight. If I wait long enough, then I can put a decent amount of cash into a savings pot and be in a good enough position to ride out this impending storm and come out the other side without too many issues. I have always tried to be sensible with money, but I will spend it if it's required. The other advantage of waiting a little while is that lead times should come down to 2-3 months and prices should have stabilised (or gone down to what they should be).
I adopted the shedding life years ago (I didn't choose to, it just sort of happened gradually) but PH people seem to be split (some love it, some think that a new car every few years is the best way). I will do what makes the most sense to me and doesn't leave me high and dry at the end of every month. The fact that I don't go many places right now means that having something shiny on the drive isn't a necessity (its a want rather than a need). Plus if leccy bills rise to 5k a year and there are rolling blackouts because the grid can't handle the demand, having something that I can fill with petrol/diesel makes so much more sense to me!
Sounds similar to my SS scheme I’m considering.
I’m not sure if folk are aware but it includes maintenance and insurance which based on my current motor is worth about £150p/m
For me, fuel savings will be around £100p/m. My current ICE is depreciating at around £250p/m on a long term trend. This takes me up to £500 p/m real cost on my current car.
Many firms with SS scheme like these have wider climate/ESG targets and increasing challenging their staff for <3/5 year old cars and/or non-ICE to get the full allowance.
Just my view, or man maths, to work through the same thing.
I’m not sure if folk are aware but it includes maintenance and insurance which based on my current motor is worth about £150p/m
For me, fuel savings will be around £100p/m. My current ICE is depreciating at around £250p/m on a long term trend. This takes me up to £500 p/m real cost on my current car.
Many firms with SS scheme like these have wider climate/ESG targets and increasing challenging their staff for <3/5 year old cars and/or non-ICE to get the full allowance.
Just my view, or man maths, to work through the same thing.
Meerkat88 said:
I adopted the shedding life years ago (I didn't choose to, it just sort of happened gradually) but PH people seem to be split (some love it, some think that a new car every few years is the best way).
You do understand that if spunking a load of your salary on a car you dont own, to not drive it, and financially commit yourself to a massive guaranteed loss is one bookend,, and 'sheddiing' is the other...There is a massive, massive gulf in between of simply 'buying and running a car for a good price' that the majority of people do?
I struggle to get my head round the idea that unless you have a new PCP or Company car, you must be slumming it in some kind of wreck on the verge of falling apart.
snotrag said:
Meerkat88 said:
I adopted the shedding life years ago (I didn't choose to, it just sort of happened gradually) but PH people seem to be split (some love it, some think that a new car every few years is the best way).
You do understand that if spunking a load of your salary on a car you dont own, to not drive it, and financially commit yourself to a massive guaranteed loss is one bookend,, and 'sheddiing' is the other...There is a massive, massive gulf in between of simply 'buying and running a car for a good price' that the majority of people do?
I struggle to get my head round the idea that unless you have a new PCP or Company car, you must be slumming it in some kind of wreck on the verge of falling apart.
if you want a hassle free existence and are happy to pay for the privelege then a new lease/company car every few years is the way to go. Lot's of people have no interest or time to spend on the buying, maintaining and selling of out of warranty used cars. Each to their own, I've done both many times over 25+ years of driving and come to the conclusion that for a daily car that needs to be relied on life is too short. For a light use, weekend toy I'd be more than happy going the used route.
snotrag said:
Meerkat88 said:
I adopted the shedding life years ago (I didn't choose to, it just sort of happened gradually) but PH people seem to be split (some love it, some think that a new car every few years is the best way).
You do understand that if spunking a load of your salary on a car you dont own, to not drive it, and financially commit yourself to a massive guaranteed loss is one bookend,, and 'sheddiing' is the other...There is a massive, massive gulf in between of simply 'buying and running a car for a good price' that the majority of people do?
I struggle to get my head round the idea that unless you have a new PCP or Company car, you must be slumming it in some kind of wreck on the verge of falling apart.
There is some merit of being at (towards?) one end of the scale or the other, in terms of capital risk.
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