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Leasing Model 3 via Salary sacrifice

spartanheed

Member
Nov 5, 2020
50
36
Durham
Model 3 Long Range ordered

£595 gross reduction, £295 net reduction

- 48 months
- 8000 miles
- Insurance, maintenance, tyres, breakdown included

It pretty much halves my pension contributions, but given I have another 30 years to go before I retire I'm not too concerned. The NHS pension pot is chance to have disappeared by then!
 
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gangzoom

Active Member
May 22, 2014
1,244
1,058
Uk
given I have another 30 years to go before I retire I'm not too concerned. The NHS pension pot is chance to have disappeared by then!

The younger you are the bigger the impact as you are losing 30 years of guaranteed inflation beating growth. Proportionally speaking any contribution into the scheme at a younger age has a much bigger impact on the pension than contributions later on.

Why do you think the NHS pension will dissappear when you retire. Its probably the most secure scheme around longterm, if the government has to backtrack on the NHS scheme than I would hate to think what kind of state private pensions will be in.

Infact if you are concerned about future NHS pension scheme right now is the time to ensure you build up your pot, as any future changes wouldn't impact on past schemes.

Its fine to go for a 'cheap' NHS lease but do all the numbers first before committing. The NHS pension payouts are simply nuts when compared to most other pension schemes, just becareful you don't waste it away on a rental car.
 
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spartanheed

Member
Nov 5, 2020
50
36
Durham
Why do you think the NHS pension will dissappear when you retire. Its probably the most secure scheme around longterm, if the government has to backtrack on the NHS scheme than I would hate to think what kind of state private pensions will be in.

Infact if you are concerned about future NHS pension scheme right now is the time to ensure you build up your pot, as any future changes wouldn't impact on past schemes..

Tons of reasons. The NHS being on the table in any post Brexit US trade deal for one. I love the NHS but it employs 1.5mil people and can't sustain its continued underfunding. I think it's highly unlikely that it will remain a completely public sector organisation for the next 30 years, and any privatisation will inevitably look at reducing the pension burden.

That coupled with the fact that the current retirement age of 68 is chance to be pushing into the 70s when I retire in 2050. I'd rather sacrifice some of my pension now and enjoy a nice car for 4 years then save pennies that I might be too infirm to enjoy in my retirement. Gone are the days of whacking up your pension and then retiring at 55 to travel the world. I'm not going to be globe trotting in my 70s sadly.

The way I look at it is, to lease a Tesla privately, service and insure it is going to be around £650 a month. Or I can sacrifice a small bit of pension and get it all in for £300 a month. £350 savings x 12mths x 4 years = £16800 saved over the next 4 years that I can use to do nice things with my family.

Knowing my luck I'd retire in 30 years with a massive pension pot and have a fatal heart attack 6 weeks later
 

spartanheed

Member
Nov 5, 2020
50
36
Durham
How do you guys do so little miles! :p

I live in Durham. My job is 10 miles away so I do about 400 miles a month commuting.

At weekends we might drive into Newcastle or to the beach which is about 12miles away and we tend to alternate cars. I'd struggle to add 200miles a month on for weekend driving
 

frm00029

Member
Sep 8, 2020
7
0
Scotland
Moderator comment - post moved

I currently have a Model 3 LR on order and received the allocation text yesterday. I have then this morning had an email at work that we will be able to lease electric cars through salary sacrifice in Jan 21... There's no guarantee that Tesla will be included as they don't have T&Cs to share yet... However, would anyone be willing to share their monthly costs either here or through DMs? I have purchased the car outright using the Scottish Gov Loan but if a lease is expected to be 50% of cost then I would be cancelling and waiting till January
 
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Danny Dog

Member
Aug 6, 2020
26
7
Brampton
I currently have a Model 3 LR on order and received the allocation text yesterday. I have then this morning had an email at work that we will be able to lease electric cars through salary sacrifice in Jan 21... There's no guarantee that Tesla will be included as they don't have T&Cs to share yet... However, would anyone be willing to share their monthly costs either here or through DMs? I have purchased the car outright using the Scottish Gov Loan but if a lease is expected to be 50% of cost then I would be cancelling and waiting till January

There's a fairly recent thread on this where people have shared their Salary Reduction and effective net monthly cost.

It appeared that most had a complete package including insurance, home charger, full maintenance - it may be that you can do some/all of this cheaper yourself.

There are a few things that you also need to consider. Lower income probably means lower Employee and Employer Pension Contributions - that may or may not be an issue.

You also need to consider if you're likely to stay with your Employer - if you leave, the car will go back.

It sounds like you're buying atm - do you plan to do any modifications - if you do, they'll need to be reversed at the end of the lease.

There are many benefits of salary sacrifice but don't just compare the numbers, there's more to it.
 

hoppo1979

Member
Feb 28, 2020
64
43
Derbyshire
Hi all, interesting thread this and some of the gross deductions are very high in my experience! I work for a large Salary Sacrifice provider (can't see us mentioned on here!) 24 months, 10,000 miles a year for a M3LR would be £710 a month gross, £612 over 36 months. This is a quote I have done for a new customer today.

We deal with mid to large corporate customers, so usually businesses with over 6,000 employees.
 

pghstochaj

Member
Nov 3, 2020
44
16
U.K.
Hi all, interesting thread this and some of the gross deductions are very high in my experience! I work for a large Salary Sacrifice provider (can't see us mentioned on here!) 24 months, 10,000 miles a year for a M3LR would be £710 a month gross, £612 over 36 months. This is a quote I have done for a new customer today.

We deal with mid to large corporate customers, so usually businesses with over 6,000 employees.

The NHS deals tend to be very poor gross as they do not need to be as competitive, and the net result is reasonable as pension contributions are included in the "gross to net" calculation. Furthermore, some people quote with insurance and/or maintenance, or without both. For instance, NHS fleet solutions includes insurance and maintenance.

For 1+35, the LR is currently available for about £520-550 without insurance and maintenance from numerous leasing companies (business, 10k/annum). So assuming that the £612 for 36 months above does not include insurance or maintenance, it is not competitive, but if it includes both, it is.

Our salary sacrifice provider is not particularly competitive but will attempt to price match other business quotations, so we tend to get a good result, after a bit of haggling. I got a M3 Performance (white and black) for £640/month (1+47, 15k/annum).
 

hoppo1979

Member
Feb 28, 2020
64
43
Derbyshire
The NHS deals tend to be very poor gross as they do not need to be as competitive, and the net result is reasonable as pension contributions are included in the "gross to net" calculation. Furthermore, some people quote with insurance and/or maintenance, or without both. For instance, NHS fleet solutions includes insurance and maintenance.

For 1+35, the LR is currently available for about £520-550 without insurance and maintenance from numerous leasing companies (business, 10k/annum). So assuming that the £612 for 36 months above does not include insurance or maintenance, it is not competitive, but if it includes both, it is.

Our salary sacrifice provider is not particularly competitive but will attempt to price match other business quotations, so we tend to get a good result, after a bit of haggling. I got a M3 Performance (white and black) for £640/month (1+47, 15k/annum).

Our Salary Sacrifice includes everything, tyres, maintenance and fully comp insurance including business cover. Charge it up, look after it and that's all you will pay.
 

pghstochaj

Member
Nov 3, 2020
44
16
U.K.
Our Salary Sacrifice includes everything, tyres, maintenance and fully comp insurance including business cover. Charge it up, look after it and that's all you will pay.
As a comparison, NHS fleet solutions will give the same deal (insurance, maintenance, 10k, 36 months) for £658, but the pension reduction will make the net cost less than non-NHS employees would pay, hence NHS fleet solutions does not need to be as competitive on the gross price.
 

beansnchips

Member
Jan 16, 2020
91
35
Gloucestershire, UK
Any suggestions on Salary Sacrifice providers for small companies (we have 14 employees and probably will only lease 2 cars). I am in the process of setting up Octopus EV with the company but I've not looked for others as I couldn't get quotes without setting up an account so cannot compare best deals.
 

gangzoom

Active Member
May 22, 2014
1,244
1,058
Uk
I think it's highly unlikely that it will remain a completely public sector organisation for the next 30 years,

Sadly privatisation is not the easy answer to NHS funding, every developed economy faces the same health care expenditure crisis regardless of funding. This is recognised centrally and I highly doubt we'll see a move to privatisation apart from for politically point scoring, economically its makes zero sense.

https://www.researchgate.net/public...f_Health_Care_Expenditure_in_the_EU_Countries

The state retirement age however will almost certainly go up, and why shouldn't it? If at 77 you can be fit enough to be the president of the USA why do we expect people to stop working at 67?

Luckily I love my job so have no issues with working till 77 (or longer if am healthy). The economic argument for a longer working life does help argue the case for increased health care funding.

I suspect we'll soon see marginal tax rates going up to 70%+ as the full economic effects of 2020 is worked out.
 

spartanheed

Member
Nov 5, 2020
50
36
Durham
The state retirement age however will almost certainly go up, and why shouldn't it? If at 77 you can be fit enough to be the president of the USA why do we expect people to stop working at 67?

Luckily I love my job so have no issues with working till 77 (or longer if am healthy).

You obviously don't pull 13hour shifts on the wards or in A&E...

Thinking it's acceptable to work until your dead went out with the workhouses
 

gangzoom

Active Member
May 22, 2014
1,244
1,058
Uk
You obviously don't pull 13hour shifts on the wards or in A&E...

Thinking it's acceptable to work until your dead went out with the workhouses

96hrs is the most I've done in a week, 32 hrs is the longest shift I've done with no sleep. which is why am not giving away a single penny of my pension, its literally earned in blood/sweat/tears:).

As for working into your 70s, like it or not its coming for everyone, if you look at the economics there is no other way. Why do you think the new NHS drive is 'healthy ageing", healthy older people = been able to work for longer.

We are going to be paying the COVID economics debts for the next 20 years, I recon we've already seen the last pay increase for NHS staff for the next 5 years.
 

VanillaAir_UK

Supporting Member
Jun 17, 2019
7,715
5,174
Surrey, UK
96hrs is the most I've done in a week, 32 hrs is the longest shift I've done with no sleep. which is why am not giving away a single penny of my pension, its literally earned in blood/sweat/tears:).

That sounds really dangerous to me - putting lives at risk - total negligence on your part for going along with it.
 

hoppo1979

Member
Feb 28, 2020
64
43
Derbyshire
Any suggestions on Salary Sacrifice providers for small companies (we have 14 employees and probably will only lease 2 cars). I am in the process of setting up Octopus EV with the company but I've not looked for others as I couldn't get quotes without setting up an account so cannot compare best deals.

Fleet Evolution.
 
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gangzoom

Active Member
May 22, 2014
1,244
1,058
Uk
That sounds really dangerous to me - putting lives at risk - total negligence on your part for going along with it.

Actually the hours any staff do these days is very much better than in the past, my bosses did 5 days straight with virtually no rest. No one in the NHS wants to do long hours, but the reality is trying to run a 24/7 service when your rota is at times 50% empty is impossible without people working long hours. I worked out my net pay for oncall/out of hours work is about £30/hr and am very close to the top of the pay scale, more junior staff are on £15/hr net pay, no one does overtime in the NHS for pay, people do it because they haven't got a choice - well there is a choice, leave wards unstaffed/patients with zero care - which no front line staff will ever do and be able to sleep at night. The pension is about the only good financial incentive in the NHS.

BBC NEWS | Health | Cap on junior doctor hours starts
 

spartanheed

Member
Nov 5, 2020
50
36
Durham
We are going to have to agree to disagree on this one. I've worked in the NHS for 20 years. I've not once known someone do 96 hours in a week or 32hours in a row. Not sure which trust or which area you work in but it's clearly poorly managed
 

gangzoom

Active Member
May 22, 2014
1,244
1,058
Uk
We are going to have to agree to disagree on this one. I've worked in the NHS for 20 years. I've not once known someone do 96 hours in a week or 32hours in a row. Not sure which trust or which area you work in but it's clearly poorly managed

Count your self lucky than, 7x12hr over night was 'normal' when I started, 84hrs standard. If I remember that was Friday to Friday, weekend off than another 7×12hrs days, 168hrs in 2 weeks. In comparison a single 24hrs+ day time stuff is easy.

Am not saying its right, but it certainly wasn't unusual.
 

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