Salary Sacrifice Scheme - worth it?

[NSS89]

Hi Guys,

I've been privately leasing since 2015 and had some great deals. Unfortunately with the current situation being the way it is I am considering extending my current lease for another year. However, I have just found out that my company will be introducing a salary sacrifice scheme soon which has turned my attention to EV's.

Having a look at rough figures a Tesla Model 3 SR+ would be £600ish gross p/m and £420ish net p/m including insurance, maintenance, servicing, tyres etc. Now looking at the net figure, its way cheaper than what I could get when looking at personal lease deals but am I looking at that correctly? Is it the net figure that will be deducted from my salary each month in regards to take home pay?

Any input from anyone already on similar scheme would be appreciated and people's general opinion on Model 3 at that price (if correct).



Thanks

[Heres Johnny]

It is the net figure, the other considerations are fuel/electricity cost if you’re comparing ICE to EV and the change in business mileage rates if you do a lot of miles on business (45p falls to 4p a mile). You’ve also got less flexibility to change when you want and if you don’t have an EV currently then satisfy yourself you can manage the differences, many can but charging away from home and long distance trips do take preparation and planning

[mcm87]

The other thing to consider is that these deals are only so competitive due to the low benefit in kind tax rates. Compare the tax on a Ford Focus to a Tesla…

You need to accept that the situation could change if they revise/remove the EV company car incentives in future. Depending on how long the commitment is and your appetite to this type of uncertainty! The way our work car park has exploded I wouldn’t be surprised if they put the brakes on this slightly, but this is purely anecdotal speculation on my part.

[TooLateForAName]

The other thing to check would be the impact on your pension.

[NSS89]

Thanks for all your replies - some great points raised!

I do hardly any business mileage so that part I’m not worried about.

I’m quite looking forward to the switch to be honest and appreciate I haven’t experienced living with one but I don’t foresee any issues.

In regards to the BIK does it get locked in for x amount of years? I know it’s 1% and changing to 2% from next year but will it stay at 2% for a few years or can they decide to change it anytime?

Edit - I just read that it will be 2% from 2022-2025 so assumed that's locked in until then at least...

Edited by NSS89 on Tuesday 28th September 15:01

[Sargeant Orange]

It was the pension issue that put me off going down the salary sacrifice route.

Also last time I looked the rates were not hugely cheaper than leasing privately which in my simple mind meant that the salary sacrifice provider was benefiting from a hefty chunk of my personal tax efficiencies, which on principal I found a bit galling