Personal Lease vs Salary Sacrifice
Personal Lease vs Salary Sacrifice
Author
Discussion

CutiRomero

Original Poster:

5 posts

Thursday
quotequote all
I'm very interested in leasing an EV as 90% of my driving is short distance and I'm prepared to cough up for my own charger.

Anyway, I've been comparing cost of a Personal Lease against the cost of leasing through the Octopus Salary Sacrifice Scheme they have at my workplace

For the vehicle I'm considering it is £297 per month less for the personal lease compared to the salary sacrifice deal on a 24 month contract with 10,000 mile p.a. The Octopus deal includes insurance/service/tyres and a 'free charger' but this doesn't seem to justify the £7,000 + price difference. I'm pretty sure I won't need tyres, will only need one service over this period and can almost certainly get source my own insurance for way less

Am I missing something or should I grab the personal lease deal?

P.S I also favour the indepence of not linking a lease to my employer, just in case...

SWoll

21,141 posts

276 months

Yesterday (06:38)
quotequote all
The cost of a SS vehicle is down to your tax circumstances, but for a 40% or above tax payer they are usually cheaper or at least comparible with a personal lease. Confirm the cost you are comparing is the NET cost to you and not the GROSS cost before tax savings are included.I

24 months deals are often a lot more expensive than 36 or 48 months for obvious reasons.

Unlike a personal lease SS usually comes with termination insurance built in so should you be made redundant or move jobs you wouldn't be left with a car payment you don't want.

Nick Forest

330 posts

101 months

Yesterday (07:16)
quotequote all
I’d get a few insurance quotes too as it might be quite a bit more than you bargained for.

I’ve an Octopus SS ID.3 with free charger on a 3 year term and nett it costs me £290 per month, very happy with the scheme and not sure I could have done it cheaper when all items accounted for in the monthly figure.

PS taking a chunk of tax away from Thievin’ Reeves is also quite a motivating factor!

Sheepshanks

38,049 posts

137 months

Yesterday (07:32)
quotequote all
Nick Forest said:
PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
You’d rather it went to Octopus’s bottom line it than pay for hospitals, schools etc?

Salary sacrifice firms are ripping the arse out of these deals. Have a look at Tusker’s accounts.

Nick Forest

330 posts

101 months

Yesterday (08:38)
quotequote all
Sheepshanks said:
Nick Forest said:
PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
You d rather it went to Octopus s bottom line it than pay for hospitals, schools etc?

Salary sacrifice firms are ripping the arse out of these deals. Have a look at Tusker s accounts.
I pay plenty tax so ctfo bro…

Reeves will just spunk any additional taxes on vanity/doomed projects.

I’ve no problem with Octopus, they pay U.K. corporate taxes and support the growth of alternative energy solutions…

CutiRomero

Original Poster:

5 posts

Yesterday (10:24)
quotequote all
Nick Forest said:
I d get a few insurance quotes too as it might be quite a bit more than you bargained for.

I ve an Octopus SS ID.3 with free charger on a 3 year term and nett it costs me £290 per month, very happy with the scheme and not sure I could have done it cheaper when all items accounted for in the monthly figure.

PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I’m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn’t be too high either.

To me, it looks like Octopus are taking a hefty margin on these deals. I’ve got a call with one of their agents later, so I’ll see what they say and report back.

SWoll

21,141 posts

276 months

Yesterday (10:39)
quotequote all
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.

To me, it looks like Octopus are taking a hefty margin on these deals. I ve got a call with one of their agents later, so I ll see what they say and report back.
£645 a month for an ID3? biglaugh

Have you looked at other vehicles and longer term deals? Could just be that model on those terms is ridiculous.

ChocolateFrog

32,844 posts

191 months

Yesterday (10:43)
quotequote all
CutiRomero said:
Nick Forest said:
I d get a few insurance quotes too as it might be quite a bit more than you bargained for.

I ve an Octopus SS ID.3 with free charger on a 3 year term and nett it costs me £290 per month, very happy with the scheme and not sure I could have done it cheaper when all items accounted for in the monthly figure.

PS taking a chunk of tax away from Thievin Reeves is also quite a motivating factor!
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.

To me, it looks like Octopus are taking a hefty margin on these deals. I ve got a call with one of their agents later, so I ll see what they say and report back.
That's mental. My OH SS ID3 was £209pm, Inc insurance and maintenance.

It's clearly not worth it at that price.

Edit. And she's only a 20% tax payer.

Sheepshanks

38,049 posts

137 months

Yesterday (11:02)
quotequote all
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.

To me, it looks like Octopus are taking a hefty margin on these deals. I ve got a call with one of their agents later, so I ll see what they say and report back.
What’s the gross figure? Because that’s what Octopus are getting.

Normally these deals are constructed so that it very slightly makes sense to go for them vs personal lease. The SS company aims to retain as much margin as possible, not do you a good deal.

There’s a bit of an outcry building over SS - if it makes sense for you then grab it while you can.

Nick Forest

330 posts

101 months

Yesterday (17:39)
quotequote all
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.
That figure doesn’t sound right..Octopus messaged last week asking if I wanted to take a second car on SS and the ID3 was still circa £300 nett and the Renault 5e was £280.

Back2theFuji

340 posts

41 months

Yesterday (18:22)
quotequote all
Nor sure if Octopus is the same, but Tusker teals are often much better for in stock (or pre-spec'd) cars.

I've got no issues with Tusker so far, they are very efficient at forwarding any warning letters and PCNs at least 😂😂

RayDonovan

5,671 posts

233 months

Yesterday (18:50)
quotequote all
We can use Octopus or Fleet Evolution

FE are quite a bit cheaper, around 25% per month. Fleet Evolution also have a better system to generate a quote and a much larger choice.

I think Octopus make loads of noise but rarely deliver on actual value in my experience...

CutiRomero

Original Poster:

5 posts

Yesterday (19:31)
quotequote all
Nick Forest said:
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.
That figure doesn t sound right..Octopus messaged last week asking if I wanted to take a second car on SS and the ID3 was still circa £300 nett and the Renault 5e was £280.
I had a call with an Octopus sales representative this afternoon. The cheapest deal they currently offer on the VW ID.3 is the 52 kW model, priced at £407 per month. The £645 per month quote for the 79 kW model is also accurate — both figures match what’s listed on their website.

When I mentioned that I could lease the same car privately for £339 per month, the salesperson claimed that I would need to pay luxury car tax on that model. I later fact-checked this and found it to be incorrect — the ID.3 is subject to the standard road tax rate, which would be covered under the lease.

The salesperson also suggested that ID.3 tyres wear out quickly because “they don’t fit the best tyres at the factory,” adding that he personally had to replace his after 10,000 miles. That comment felt questionable, and it’s disappointing to hear salespeople resorting to exaggerated or misleading claims.

Overall, the experience didn’t inspire confidence, and I don’t think I’ll be placing an order with Octopus.

TheDrownedApe

1,484 posts

74 months

Yesterday (20:29)
quotequote all
CutiRomero said:
Nick Forest said:
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.
That figure doesn t sound right..Octopus messaged last week asking if I wanted to take a second car on SS and the ID3 was still circa £300 nett and the Renault 5e was £280.
I had a call with an Octopus sales representative this afternoon. The cheapest deal they currently offer on the VW ID.3 is the 52 kW model, priced at £407 per month. The £645 per month quote for the 79 kW model is also accurate both figures match what s listed on their website.

When I mentioned that I could lease the same car privately for £339 per month, the salesperson claimed that I would need to pay luxury car tax on that model. I later fact-checked this and found it to be incorrect the ID.3 is subject to the standard road tax rate, which would be covered under the lease.

The salesperson also suggested that ID.3 tyres wear out quickly because they don t fit the best tyres at the factory, adding that he personally had to replace his after 10,000 miles. That comment felt questionable, and it s disappointing to hear salespeople resorting to exaggerated or misleading claims.

Overall, the experience didn t inspire confidence, and I don t think I ll be placing an order with Octopus.
You have to understand they think you are a dumb, car ignorant dummy. The nonsense they spout is scary stupid.

I honestly think there is mileage in making a documentary about the BS thsee companies peddle. Take any commodity and the peddlers are scary ignorant and literally stupid abiut their product.

RayDonovan

5,671 posts

233 months

Yesterday (20:31)
quotequote all
TheDrownedApe said:
CutiRomero said:
Nick Forest said:
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.
That figure doesn t sound right..Octopus messaged last week asking if I wanted to take a second car on SS and the ID3 was still circa £300 nett and the Renault 5e was £280.
I had a call with an Octopus sales representative this afternoon. The cheapest deal they currently offer on the VW ID.3 is the 52 kW model, priced at £407 per month. The £645 per month quote for the 79 kW model is also accurate both figures match what s listed on their website.

When I mentioned that I could lease the same car privately for £339 per month, the salesperson claimed that I would need to pay luxury car tax on that model. I later fact-checked this and found it to be incorrect the ID.3 is subject to the standard road tax rate, which would be covered under the lease.

The salesperson also suggested that ID.3 tyres wear out quickly because they don t fit the best tyres at the factory, adding that he personally had to replace his after 10,000 miles. That comment felt questionable, and it s disappointing to hear salespeople resorting to exaggerated or misleading claims.

Overall, the experience didn t inspire confidence, and I don t think I ll be placing an order with Octopus.
You have to understand they think you are a dumb, car ignorant dummy. The nonsense they spout is scary stupid.

I honestly think there is mileage in making a documentary about the BS thsee companies peddle. Take any commodity and the peddlers are scary ignorant and literally stupid abiut their product.
Octopus are very pushy.

Nick Forest

330 posts

101 months

Yesterday (20:35)
quotequote all
TheDrownedApe said:
CutiRomero said:
Nick Forest said:
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.
That figure doesn t sound right..Octopus messaged last week asking if I wanted to take a second car on SS and the ID3 was still circa £300 nett and the Renault 5e was £280.
I had a call with an Octopus sales representative this afternoon. The cheapest deal they currently offer on the VW ID.3 is the 52 kW model, priced at £407 per month. The £645 per month quote for the 79 kW model is also accurate both figures match what s listed on their website.

When I mentioned that I could lease the same car privately for £339 per month, the salesperson claimed that I would need to pay luxury car tax on that model. I later fact-checked this and found it to be incorrect the ID.3 is subject to the standard road tax rate, which would be covered under the lease.

The salesperson also suggested that ID.3 tyres wear out quickly because they don t fit the best tyres at the factory, adding that he personally had to replace his after 10,000 miles. That comment felt questionable, and it s disappointing to hear salespeople resorting to exaggerated or misleading claims.

Overall, the experience didn t inspire confidence, and I don t think I ll be placing an order with Octopus.
You have to understand they think you are a dumb, car ignorant dummy. The nonsense they spout is scary stupid.

I honestly think there is mileage in making a documentary about the BS thsee companies peddle. Take any commodity and the peddlers are scary ignorant and literally stupid abiut their product.
If you’re in a 40% tax band then the figure quoted is gross and you need to net off the tax saving. You’re also not required to put any money into the deal but is that the case for your private lease deal, any deposit etc required?

They are just kids on the Octopus sales channel so do your own due diligence but it’s no better at a typical car dealer these days.

You have to do what’s right for you but ensure you’re comparing apples with apples.

Chucky-egg

137 posts

62 months

Yesterday (20:36)
quotequote all
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.

To me, it looks like Octopus are taking a hefty margin on these deals. I ve got a call with one of their agents later, so I ll see what they say and report back.
Jesus Christ, how much! Tusker have some in stock ID7 tourers for £450pm net (40% taxpayer).

I pay less gross (£624pm) for a Mercedes EQC than that ID3 deal - surely the £645 has to be gross and not net?

Edited by Chucky-egg on Friday 10th October 20:38

CutiRomero

Original Poster:

5 posts

Yesterday (20:52)
quotequote all
Nick Forest said:
TheDrownedApe said:
CutiRomero said:
Nick Forest said:
CutiRomero said:
Octopus are quoting me £645/month (net) for an ID.3 with the 79 kWh battery. However, a personal lease for the same model is only £339/month including the initial payment. I m perfectly happy to install my own charger, and as a 55-year-old with 11 years of no claims, insurance shouldn t be too high either.
That figure doesn t sound right..Octopus messaged last week asking if I wanted to take a second car on SS and the ID3 was still circa £300 nett and the Renault 5e was £280.
I had a call with an Octopus sales representative this afternoon. The cheapest deal they currently offer on the VW ID.3 is the 52 kW model, priced at £407 per month. The £645 per month quote for the 79 kW model is also accurate both figures match what s listed on their website.

When I mentioned that I could lease the same car privately for £339 per month, the salesperson claimed that I would need to pay luxury car tax on that model. I later fact-checked this and found it to be incorrect the ID.3 is subject to the standard road tax rate, which would be covered under the lease.

The salesperson also suggested that ID.3 tyres wear out quickly because they don t fit the best tyres at the factory, adding that he personally had to replace his after 10,000 miles. That comment felt questionable, and it s disappointing to hear salespeople resorting to exaggerated or misleading claims.

Overall, the experience didn t inspire confidence, and I don t think I ll be placing an order with Octopus.
You have to understand they think you are a dumb, car ignorant dummy. The nonsense they spout is scary stupid.

I honestly think there is mileage in making a documentary about the BS thsee companies peddle. Take any commodity and the peddlers are scary ignorant and literally stupid abiut their product.
If you re in a 40% tax band then the figure quoted is gross and you need to net off the tax saving. You re also not required to put any money into the deal but is that the case for your private lease deal, any deposit etc required?

They are just kids on the Octopus sales channel so do your own due diligence but it s no better at a typical car dealer these days.

You have to do what s right for you but ensure you re comparing apples with apples.
Just to clarify — I’m quoting the net figure, not the gross. Yes, a private lease does require money up front, but the figure I’ve mentioned represents the average monthly cost, not just the monthly payment.

Nick Forest

330 posts

101 months

Yesterday (21:05)
quotequote all
If it’s a car they haven’t got in stock (they usually focus on the 58kWh version I think) then maybe they’re pricing it to reflect that fact?

CutiRomero

Original Poster:

5 posts

Yesterday (21:17)
quotequote all
Nick Forest said:
If it s a car they haven t got in stock (they usually focus on the 58kWh version I think) then maybe they re pricing it to reflect that fact?
Fair comment. They’re mainly pushing their pre-configured deals — i.e. the 58 kWh version — so yes, the pricing reflects that.