Yeah that’s insurance/tyres/service requests included. 7,000 miles/year (I only commute 4 miles). It’s a very good deal if I’m honest. Obviously other deductions on top (BIK) and tax/pensions savings vary for the true net cost to each individual.
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New salary sacrifice prices
- Thread starter Basicbob
- Start date
With personal leases though that’s exactly what they do. You literally pay the full amount for the extra over your lease. Makes no sense and it’s why you see so many ex lease cars with poverty spec.Yeah I've seen that. I've just assumed that it's due to the fact that the lease company gets the car back at the end of the agreement. If they charged the full amount over the 3 years I'd take them off before it went back
The only reason we make a saving via salary sacrifice is because of the tax/ni savings.
In theory a used car should be more valuable with the large wheel option but the lease companies don't really take that into account. Your tax benefit is giving you the saving, not the lease company increasing the end of term valuational.Yeah I've seen that. I've just assumed that it's due to the fact that the lease company gets the car back at the end of the agreement. If they charged the full amount over the 3 years I'd take them off before it went back
I think you would need to return the car with some wheels on it
The £2,100 wheel option is obviously the price over and above the price of the standard wheels/tyres. If you purchased the car with standard wheels and then purchased the upgraded wheels/tyres in addition, that would cost you north of £3.5k.
In theory a used car should be more valuable with the large wheel option but the lease companies don't really take that into account. Your tax benefit is giving you the saving, not the lease company increasing the end of term valuational.
I think you would need to return the car with some wheels on it
Fast Competition FC04 Wheels for Tesla - Titanium (Set of 4)
THE FC04 - TITANIUMDESIGNED FOR THE TESLA MODEL 3/Y - (Set of 4) *Hub rings included with purchase* *These wheels require aftermarket lug nuts* Specs: Model #: FC04 Size: Select option P.C.D.: 5x114.3mm Finish: Titanium Hub Bore: 72.6 mm Offset: +40mm Seat: 60° Lip Size: N/A Weight: Depends on...
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Yeah, you would go aftermarket rather than Tesla's heavy rims (but you have the insurance fun and games getting cover/premium increase).Fast Competition FC04 Wheels for Tesla - Titanium (Set of 4)
THE FC04 - TITANIUMDESIGNED FOR THE TESLA MODEL 3/Y - (Set of 4) *Hub rings included with purchase* *These wheels require aftermarket lug nuts* Specs: Model #: FC04 Size: Select option P.C.D.: 5x114.3mm Finish: Titanium Hub Bore: 72.6 mm Offset: +40mm Seat: 60° Lip Size: N/A Weight: Depends on...
Those ones look like they are sailing close to the wind in terms of legally staying behind the bodywork (ok in some parts of the US but not in the UK) - the design and slightly different offset means they are sticking out further than the OEMs.
Steelies with aero covers so they never notice?In theory a used car should be more valuable with the large wheel option but the lease companies don't really take that into account. Your tax benefit is giving you the saving, not the lease company increasing the end of term valuational.
I think you would need to return the car with some wheels on it
Hi All
As I'd said previously, finally got my YLR ordered and updating here with costs in case it's any use to anybody in the future!
£1150 pm Gross
Model Y LR
Metallic Blue
19” wheels
Black interior.
Insurance for me and partner
Maintenance
Tyres
Windscreen
4 year & 10k miles
The order went in yesterday, today I've had my email to set up my Tesla account. Now excited every time my phone vibrates in case it's my EDD!
As I'd said previously, finally got my YLR ordered and updating here with costs in case it's any use to anybody in the future!
£1150 pm Gross
Model Y LR
Metallic Blue
19” wheels
Black interior.
Insurance for me and partner
Maintenance
Tyres
Windscreen
4 year & 10k miles
The order went in yesterday, today I've had my email to set up my Tesla account. Now excited every time my phone vibrates in case it's my EDD!
I don’t think it is. Taking the same terms (PCH 4 year, 10K miles, no deposit) with Tesla direct would be £735 a month. Slap on insurance and you’re at £800 PM which straight away is more that my net deduction?
But it’s only cheap because of the tax saving which the lease company understands and hikes up the gross price. This is the problem with salary sacrifice, there is no competition so the lease company makes more than they normally would do.
It can clearly work out for both parties - lease Co and employee - as evidenced by how popular the schemes are for EVs.
It will fade out I think as BIK rates eventually creep up.
However I’m able to lease a model Y RWD, with metallic paint , 4 years 10k pa (inc insurance etc etc) and have an EV charger installed for just under £500 net a month (with zero up front). I think that’s a pretty good deal.
I agree! As BIK rates climb in coming years, there may come a point where it’s no longer actually a benefit of using salary sacrifice for a car.
I’m with you in that being a good deal as I think mine is too. I was going to order directly from Tesla anyway and then having to sort insurance etc, all of that would be paid out of net wage. Then if a windscreen gets chipped or a tyre gets a puncture, that’s something else to pay for. The salary sacrifice means I don’t have any of that worry. If I get a puncture, I call up and get booked in for a replacement and nothing to pay.
I’m with you in that being a good deal as I think mine is too. I was going to order directly from Tesla anyway and then having to sort insurance etc, all of that would be paid out of net wage. Then if a windscreen gets chipped or a tyre gets a puncture, that’s something else to pay for. The salary sacrifice means I don’t have any of that worry. If I get a puncture, I call up and get booked in for a replacement and nothing to pay.
One is net and one is gross (and two different models - mine is the base RWD model)
Yeah but mistake has got RWD whereas I have LR.
And mistake’s 500 is net, my 1150 is gross. For direct comparison, my NET actually works out to be just under £700 PM.
Yeah. It just worked for me. I like the thought of no hassle or unexpected costs.
Also given how many posts I see about cost of insurance right now - glad I don’t have that to worry about.
Yes. The lease company, instead of giving you a good deal are basically saying, yeah, there are huge tax savings to be had, so heres some for you but we're going to pocket a chunk as well.
But how is that (operationally) different to any other successful business model in the world?
I fully agree with you by the way. But to the end user price, it’s beneficial as well as allowing the lease company to be a profitable business which is how it should be in my opinion.
The difference is your employer doesn't care other than to sign up to a provider while trying to appear to a caring type of place. They're giving you the choice of 1 company to provide the service and that is eye wateringly expensive.
You can look at is as a saving of say £150 a month over personal finance, or you can see it as someone taking probably £200 of you gross salary as their excess profit and exploiting you and the company you work for. Personally I'd be talking to the company pointing out the provider is not proving a fair market price.
Yeah I see the point and don’t fully disagree. But for me personally, the tax benefit resulting in the lower end cost to me, along with the overall convenience works well.
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