Salary Sacrifice for Cars Scheme
Discussion
So, I have the opportunity to take out one of these Leasing schemes through work which would save my self quite alot of money as im only 20 years old. The scheme includes insurance, full maintenance, tyres, european cover. I've been looking at the brand new Fiesta 1.4TDCI colour of my choice for £234 a month for 3 years then the option to either buy it at the end or do the scheme with a different car again. Ino many of you dislike leasing/finance schemes but whats your views on the the Leases through work as these save me around £100 on pension, tax and NI.
Sorry its long winded but i think whilst insurance is a hell of a lot of money on rubbish cars this seems something that must be taken advantage of.
Sorry its long winded but i think whilst insurance is a hell of a lot of money on rubbish cars this seems something that must be taken advantage of.
Don't worry about what some of the idiots on here say about finance - do whatever is right for your own situation.
I have experience of company cars, but not the salary sacrifice type scheme you mention. As you correctly say, you basically save in Tax and NI, but do have a check of the T&C's, expecially the ones which detail what happens at the end of the contract. It may also be worth having a look at whether you can find similarly priced lease deals online etc. I guess though, at 20, insurance would be the biggest killer.
Having a fully maintained and insured car for a reasonable outlay is not to be sniffed at and, remember before someone shouts "get an MX5 for £1000" that going down the route you have asked about means you aren't liable for maintenance, breakdowns or any other unforseen issues. Being able to be responsible enough to realise this at 20, you clearly have your head screwed on. Just do a bit more research before taking the plunge.
I have experience of company cars, but not the salary sacrifice type scheme you mention. As you correctly say, you basically save in Tax and NI, but do have a check of the T&C's, expecially the ones which detail what happens at the end of the contract. It may also be worth having a look at whether you can find similarly priced lease deals online etc. I guess though, at 20, insurance would be the biggest killer.
Having a fully maintained and insured car for a reasonable outlay is not to be sniffed at and, remember before someone shouts "get an MX5 for £1000" that going down the route you have asked about means you aren't liable for maintenance, breakdowns or any other unforseen issues. Being able to be responsible enough to realise this at 20, you clearly have your head screwed on. Just do a bit more research before taking the plunge.
Quinnaay said:
So, I have the opportunity to take out one of these Leasing schemes through work which would save my self quite alot of money as im only 20 years old. The scheme includes insurance, full maintenance, tyres, european cover. I've been looking at the brand new Fiesta 1.4TDCI colour of my choice for £234 a month for 3 years then the option to either buy it at the end or do the scheme with a different car again. Ino many of you dislike leasing/finance schemes but whats your views on the the Leases through work as these save me around £100 on pension, tax and NI.
Sorry its long winded but i think whilst insurance is a hell of a lot of money on rubbish cars this seems something that must be taken advantage of.
What happens if you leave said place of work? Sorry its long winded but i think whilst insurance is a hell of a lot of money on rubbish cars this seems something that must be taken advantage of.
em177 said:
I'm sorry but every single post you put on this forum is completely retarded!
Harsh................but fair.Just read the T&C's carefully as mentioned above.
If you are happy then its a great deal especially including insurance. You would be paying probably £100+ on insurance alone if you did it privately.
Sexual Chocolate said:
Quinnaay said:
So, I have the opportunity to take out one of these Leasing schemes through work which would save my self quite alot of money as im only 20 years old. The scheme includes insurance, full maintenance, tyres, european cover. I've been looking at the brand new Fiesta 1.4TDCI colour of my choice for £234 a month for 3 years then the option to either buy it at the end or do the scheme with a different car again. Ino many of you dislike leasing/finance schemes but whats your views on the the Leases through work as these save me around £100 on pension, tax and NI.
Sorry its long winded but i think whilst insurance is a hell of a lot of money on rubbish cars this seems something that must be taken advantage of.
What happens if you leave said place of work? Sorry its long winded but i think whilst insurance is a hell of a lot of money on rubbish cars this seems something that must be taken advantage of.
Schuey M said:
I cant imagine much worse than a 1.4 oil burner on credit. At least get a car with some power ffs!
Get an E39 M5 or better still, a GT86 AKA the greatest car ever made (voted for by those special individuals who have had the honour of driving one.) 
On a serious note and ignoring the "buy a 20 yo shed" brigade, it sounds perfect for someone of your age.
I would suggest you check out the BIK tax implications before you go ahead - we have a similar scheme at work and HMRC view it effectively as having a company car, so you might end up with a bit of a hit on tax. If your company have got round that though it seams like a no-brainer - also check if ther are any insurance loading / excess for your age?
Pressumably as it's 'through work' as the OP has pointed out twice, should he find himself in the unfortunate position to be out of work the car will go too?
So you won't need to be tied into the contract on the car, the only problem you'll have is that should you be unlucky enough you'll lose your job and have no car though.
So you won't need to be tied into the contract on the car, the only problem you'll have is that should you be unlucky enough you'll lose your job and have no car though.
i am not sure about these salary sacrifice schemes. Basically it just means you get your car allowance tax free providing you buy a car on the scheme (I know it's more complicated than that) but you pay BIK tax so it is only even vaguely worth it for very small cars. Surely there isn't much in it even then.
theap and still be paying over 200 quid a month for insurance. To me, it looks like a no-brainer. For a reasonable sum, you're getting your insurance and a decent new car thrown in with it. Blown2CV said:
i am not sure about these salary sacrifice schemes. Basically it just means you get your car allowance tax free providing you buy a car on the scheme (I know it's more complicated than that) but you pay BIK tax so it is only even vaguely worth it for very small cars. Surely there isn't much in it even then.
BIK is next to nothing on this sort of car for a 20% taxpayer. For a salary sacrifice scheme it's all taken care of in the deal.HMRC isn't happy about these schemes, mainly because the risk of ownership stays with the employer, but they haven't moved against them as everyone expected. As such, it's almost bonkers not to take advantage of them, and for a young driver in a higher insurance area it would be beyond insane.
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