Model 3 UK orders.

[jjwilde]

gangzoom said:

£513/month for the P, 10k per year, 36 month agreement. No up front cost, includes insurance for 2 people, servicing, and tax.

Amount taken from gross salary is £1103/month.

Kia Niro is £348/month same options.

Shame aren't ready for a new car, very cheap new motoring!

People in the NHS over on speakEV are saying it's £329?

[Zoon]

gangzoom said:

£513/month for the P, 10k per year, 36 month agreement. No up front cost, includes insurance for 2 people, servicing, and tax.

Amount taken from gross salary is £1103/month.

Kia Niro is £348/month same options.

Shame aren't ready for a new car, very cheap new motoring!

So your salary is reduced £1103 but it's costing £513?

[gangzoom]

May be with a different supplier, cheapest EV I can see is an instock i3 for £260/month doing 5k per year, 36 month.

Some really cheap EVs, depending on pensions situation might make sense selling the Lexus and going one of these deals.

[gangzoom]

Zoon said:

So your salary is reduced £1103 but it's costing £513?

Depends on your tax situation, gross salary reduction is £1103 before tax, but the net take home pay reduction is alot less as you are not paying income tax/NI/pensions contribution on that amount.

Ultimately its still a lease deal though so at the end of 3 year having paid out £18k plus reduced your pension you still have nothing to show for it.

Only makes sense to me if it helps with the £40k annual tax free pension growth limit. Even than in theory any tax bill from going over that limit will be repaid by NHS England.

[jamoor]

TVR_Steve said:

jjwilde said:

I'd be amazed if Tesla can keep up with the BIK demand, the NHS are offering the Performance as a car at a crazy low price. I'd expect the delays to be 10+ months by March.

I agree. Wait until everyone tries to charge them at the same time....

It's going to be mental.

At home I assume?

[Zcd1]

jamoor said:

At home I assume?

Yeah, not seeing the issue...

[ZesPak]

TVR_Steve said:

I agree. Wait until everyone tries to charge them at the same time....

It's going to be mental.

What do you mean? Are you referring to this thread?
How long have we got ??

[Fastlane]

London1986 said:

Thanks for sharing. I'm also in the same boat.

£634/month is not bad for a 36 month contract. What was the deposit?

For me the car will be 100% personal use. I'm an IT contractor so have no need to use the car for business.

Agree with some other posters on here, due to the 0% BIK rates this is going to be a very popular option. Imagine the M3's will almost be as common on the roads as a Prius! I recently went to San Francisco as M3's were literally everywhere.

It is a 6+35 deal - the £634 I quoted is the total cost i.e. it includes the up front cost but straight-lined over 36 months.

There are already a fair few M3s down here in Cornwall and Cornwall is the second poorest county in the UK, but does have a lot of small businesses.

[London1986]

Fastlane said:

It is a 6+35 deal

What does that mean exactly? Is that £6k deposit with 35 monthly payments?

[Fastlane]

London1986 said:

What does that mean exactly? Is that £6k deposit with 35 monthly payments?

6 months upfront (the initial payment/deposit) + 35 monthly payments.

[London1986]

Ahh ok that makes sense.

Just had a look on leasing.com, there are some really good deals on there. From first impressions it works out a lot cheaper than doing the lease directly via Tesla (potentially because it's done as a business lease vs standard PCP I assume)

Also I like that you have the option of reducing the milage below 10k.

I assume once you click 'get a quote', you'll get a chance to add extra options/colours etc and the price will increase?

[SWoll]

gangzoom said:

Zoon said:

So your salary is reduced £1103 but it's costing £513?

Depends on your tax situation, gross salary reduction is £1103 before tax, but the net take home pay reduction is alot less as you are not paying income tax/NI/pensions contribution on that amount.

Ultimately its still a lease deal though so at the end of 3 year having paid out £18k plus reduced your pension you still have nothing to show for it.

Only makes sense to me if it helps with the £40k annual tax free pension growth limit. Even than in theory any tax bill from going over that limit will be repaid by NHS England.

That £18k is still significantly less than the expected depreciation if you handed over £50k+ of your own cash to buy one outright though? So you'd be in a better financial position despite having 'nothing to show for it'? Also includes insurance, VED etc.

[Fastlane]

London1986 said:

Ahh ok that makes sense.

Just had a look on leasing.com, there are some really good deals on there. From first impressions it works out a lot cheaper than doing the lease directly via Tesla (potentially because it's done as a business lease vs standard PCP I assume)

Also I like that you have the option of reducing the milage below 10k.

I assume once you click 'get a quote', you'll get a chance to add extra options/colours etc and the price will increase?

I think you are confusing leasing (renting with generally no purchase option) with Personal Contract Purchase (PCP - where you pay a deposit, monthly amount and then either give the car back or pay a final/balloon payment to own it). The Tesla site offers a PCP and PCPs are generally more expensive than leases.

I'd perhaps suggest you do some research on car financing so you can see which option is best for you.

[London1986]

Fastlane said:

I think you are confusing leasing (renting with generally no purchase option) with Personal Contract Purchase (PCP - where you pay a deposit, monthly amount and then either give the car back or pay a final/balloon payment to own it). The Tesla site offers a PCP and PCPs are generally more expensive than leases.

I'd perhaps suggest you do some research on car financing so you can see which option is best for you.

No I get the difference between lease and PCP. The Tesla site also offers lease options.

But yes I am new to business leasing so that's where the confusion is, but yeah will do some more reading.

[SWoll]

London1986 said:

Fastlane said:

I think you are confusing leasing (renting with generally no purchase option) with Personal Contract Purchase (PCP - where you pay a deposit, monthly amount and then either give the car back or pay a final/balloon payment to own it). The Tesla site offers a PCP and PCPs are generally more expensive than leases.

I'd perhaps suggest you do some research on car financing so you can see which option is best for you.

No I get the difference between lease and PCP. The Tesla site also offers lease options.

But yes I am new to business leasing so that's where the confusion is, but yeah will do some more reading.

PCP
Cash
HP

No PCH on the Tesla site.

[London1986]

SWoll said:

PCP
Cash
HP

No PCH on the Tesla site.

Ha! You're right. I've been looking at numbers too long, gone call it a day.

[gangzoom]

SWoll said:

That £18k is still significantly less than the expected depreciation if you handed over £50k+ of your own cash to buy one outright though?

One is a rental and the other is owning, am sure you know the difference. But you are right £50k+ is a big amount of money to waste on a second car, and the NHS salary sacrifice may be alot cheaper than anything else but for me is equally a stupid amount of money to waste.

The car the rental will replace costs £200/year to service, £400/year to insure, and £500/year to refuel, that's £91/month, or 36% the cost of even the cheape i3 rental. Add in the fact in 3 years time the current car will still be going strong (sub 50k miles is nothing for a Lexus), and remain just as cheap to run, whilst if we had a rental we would be looking around crossing fingers for a good deal.....The numbers simply don't work.

The main attraction of salary sacrifice of me is the potential to reduce pension tax burden and/or marginal tax, that situation will become more clear later this year as well as my own earning potential going forwards. If renting a car gets me out of a tax bill than I will bite you can be sure of that, as either way the cash is going to some else.

Edited by gangzoom on Saturday 25th January 06:23

[covmutley]

Obviously 2nd hand is cheaper but you need to add the cost of depreciation. In what I assume, based on mileage, is a newish Lexus ite going to be something like £200 month.

That closes the gap a lot. Now add in the tax savings and it must be getting very close to very attractive

[rjg48]

If you want cheap the new Electric MG SUV starts at just over £22k.

Nice looking too.

[gangzoom]

covmutley said:

Obviously 2nd hand is cheaper but you need to add the cost of depreciation. In what I assume, based on mileage, is a newish Lexus ite going to be something like £200 month.

That closes the gap a lot. Now add in the tax savings and it must be getting very close to very attractive

The tax savings are already built into the NHS lease prices, but it doesn't show the longterm cost on pensions reduction, which isn't an issue if you rent for just 1-2 years, but if you end up in a rental cycle for year after year it will have a significant impact on the pension value. The NHS isn't offering these 'cheaper' deals out of the good will for the employees, it's a very effective way to reduce the organisations pension/NI commitments.

The IS was bought for £34K in 2015 new, lets assume its worth £9K in 2023 - which is about right given current 2013 car prices that's the equivalent of £260/month in deprecation, and on running costs and its £360/month for all in cost. Still far cheaper than a Model 3 even on a NHS lease deal.

The biggest killer of the rental though is what happens after 2023, the IS is our 2nd car, it only does 5K a year, given its rock solid reliability, on going cheap running costs there is very little if any reason to sell it. So after another 3 years the total cost of ownership will drop even more, where as with a rental come 2023 we will be needing to fund another new agreement or another car.

The NHS deals will makes sense to us if it helps with an potential tax bill related to the whole pensions mess, the government is making more details clear in the budget this year, if the budget causes the numbers not to stack up from the tax/pension point of view than I suspect pretty much ever single NHS employee in the higher tax bracket will be jumping on the salary sacrifice band wagon!! At the moment though it does't make sense to commit to any salary sacrifice scheme, not until we know exactly the situation with the pensions tax issue.

Edited by gangzoom on Saturday 25th January 09:01