Hi mr Bailey. It looks as though it is, although that price looks rather high. As a 20% tax payer, SR, white, black interior came out about £400-£450 p/m. Have you included some added extras?
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planehazza
Member
I have to agree; that looks a tad high. It depends on tax code and mileage, among other things, but to compare, my LR in white is ~£330pm on the NHS FS scheme with 8k miles pa. That price will probably still be reflecting the current BIK rates too - this will drop to 0% in April for EVs/ zero emission cars which will make quite a difference in monthly costs.
planehazza
Member
you're getting paid too much by the sounds of it
I wish! The NHS FS just gives access to cars at good rates. I'm suffering in the long term by slightly lower pension payments, but I'd rather a Model 3 in my 30s than in my 70s haha.
All the good NHS FS mentioned relate neto thet reduction of take home pay, and taking into account the 0% BIK from April. £300-400 per month depending on spec. Performance actually slightly less than the LR due to less depreciation.
There is also some cost in terms of pension reduction.
There is also some cost in terms of pension reduction.
planehazza
Member
Because that's the net loss on take home money. The Tesla lease/insurance etc. all come off the gross pay, so I pay less Tax/NI/pension etc.
Thanks for the reply. No, I’ve gone for the base model to keep costs down and that’s with 7500 miles.
That’s an amazing price. I do feel like it is a lot higher than what most are paying on here. May have to weigh up my options.
planehazza
Member
They can be quite harsh in terms of going over mileage and what the lease company considers 'fair' wear and tear mind. There's a risk, but I cry over stone chips so I tend to try and look after it.
IanB
Member
Are you 100% sure it will affect your pension contributions?
That really is a great cost per month
Are you sure you will get a hit on your pension contributions or are you talking about the fact that you will make less additional contributions to your pension fund? I used to pay for childcare vouchers using salary sacrifice, it didn't make any difference to my standard pension contributions as they were calculated before any salary sacrifice were taken out.
planehazza
Member
I'm not 100% sure, but I believe that because I'm taking home less 'cash' then my pension payments (and therefore for employer's matched contribution) is lower. I'd have to check an old payslip against a current one. The fact that I don't know the answer shows how blasé about it I am
I'm not 100% sure, but I believe that because I'm taking home less 'cash' then my pension payments (and therefore for employer's matched contribution) is lower. I'd have to check an old payslip against a current one. The fact that I don't know the answer shows how blasé about it I am
Yes I don't worry too much about this either. The pension rules change so often that there's little point second guessing what effect it will have. Enjoy your new toy.
planehazza
Member
Yup. Do I get a Telsa M3LR now for ~£350 per month, or wait until I'm old and buy outright? Now, thanks. I'm not waiting until I'm 70
I'm not 100% sure, but I believe that because I'm taking home less 'cash' then my pension payments (and therefore for employer's matched contribution) is lower. I'd have to check an old payslip against a current one. The fact that I don't know the answer shows how blasé about it I am
Correct, you effectively will agree to take a pay cut to pay for the car and therefore the effect is that you pay less toward your pension, national insurance and tax. In the long term you will have paid less into your pension. The NHS pension is a very complex thing and they change the rules so often it probably isn't worth worrying about. I'm still expecting someone to tell me they made a mistake though and that I need to pay more.
The rule changes aren't that often and if you are near retirement (within 3 years) it may have a big effect on the pension, otherwise you can estimate the effect on your take home pension figure.
Use the gross sacrifice amount, and remember the reduction of the pension is figure is per year for how ever long you are alive to collect the pension. This figure is also inflation adjusted which the calculator doesn't take into account.
Impact on pension | Salary sacrifice | Benefits Everyone
A few years of salary sacrifice will not effect your take home pension much, but if you keep on using salary sacrifice at large amounts for years on end the impact can be large.
This calculator shows the effect of losing a small amount value after adjusting for interest over 20 years.
https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php
For me a £1100 gross reduction in salary for something like a P Model 3 translates to £6,730 annual total pension pay out reduction over 10 years once accounted for inflation, or £20k for a 36 month term. Don't forget to add in your net reduction in total pay for the ture cost of salary sacrifice.
Am sure everyone in the NHS effected by the annual 40k tax free pension pkt growth is already aware salary sacrifice may reduce your tax bill, but its likely in the budget this year the government is going to make changes to the law to reduce/remove the impact on NHS staff. As the only other way to reduce the potential tax bill is for staff to work less, which is not what the NHS need.
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I've just done the figures for pension value lost over 20 years once accounted for inflation based on £1k a month gross salary sacrifice, and 3% annual payout growth.....
£15k per year excluding reduction in take home pay, so for a 3 year terms thats a potential saving of £45k taking into account inflation. Ofcourse in 20 years time £45k isn't worth as much as it is now but stil its not a small value for the NHS to save in paying out pension costs in future.
No wonder our trust keeps pushing salary sacrifice schemes, its a big money saver for them long term!!
£15k per year excluding reduction in take home pay, so for a 3 year terms thats a potential saving of £45k taking into account inflation. Ofcourse in 20 years time £45k isn't worth as much as it is now but stil its not a small value for the NHS to save in paying out pension costs in future.
No wonder our trust keeps pushing salary sacrifice schemes, its a big money saver for them long term!!
Everyone seems to lease the cars these days but I struggle with concept so thought I would ask here and see if its right for me.
I'm a bit more traditional in my finances, save money to buy car, run it to the ground, buy another... Usually over the course of 5-8 years I've managed to save up enough to buy a new second hand car (or had a bit of a windfall/insurance payout). I'm ok with taking a loan for a car to pay off over 5 years (Hire Purchase) but when I do the calculations for leasing I don't get much saving. I do about 25'000 miles a year which seems to kill the benefit of lease.
I feel the best way for me to get into a M3 is to buy on HP, after 5 years (long time at the rate this tech goes) I have an asset of about say £10k (based on Tesla residual calculation by doing similar scenario for PCP). I can use this as a deposit towards the next one if I wish, or keep it for a few more years with just electric costs and risks of maintenance/significant part failure - potentially saving 300-400/month for a few years (which is appealing)
Am I mad or would you knowledgeable guys say don't risk having a high mileage M3 out of warranty. Take the cost and accept that leasing a car and never owning it. Accept that I will basically never own a car again.
Sorry for the rambling, not managed to talk it through many like minded people. I can afford a SR+ with my current outgoings as they are (after salary sacrifice and fuel savings) but the range is a potential issue as I have a standard commute of 75 miles a day with occasional business trips of up to say another 80miles. LR, although another £100/m more expensive it get rids of ever needing to think about range on a daily basis.
I'm a bit more traditional in my finances, save money to buy car, run it to the ground, buy another... Usually over the course of 5-8 years I've managed to save up enough to buy a new second hand car (or had a bit of a windfall/insurance payout). I'm ok with taking a loan for a car to pay off over 5 years (Hire Purchase) but when I do the calculations for leasing I don't get much saving. I do about 25'000 miles a year which seems to kill the benefit of lease.
I feel the best way for me to get into a M3 is to buy on HP, after 5 years (long time at the rate this tech goes) I have an asset of about say £10k (based on Tesla residual calculation by doing similar scenario for PCP). I can use this as a deposit towards the next one if I wish, or keep it for a few more years with just electric costs and risks of maintenance/significant part failure - potentially saving 300-400/month for a few years (which is appealing)
Am I mad or would you knowledgeable guys say don't risk having a high mileage M3 out of warranty. Take the cost and accept that leasing a car and never owning it. Accept that I will basically never own a car again.
Sorry for the rambling, not managed to talk it through many like minded people. I can afford a SR+ with my current outgoings as they are (after salary sacrifice and fuel savings) but the range is a potential issue as I have a standard commute of 75 miles a day with occasional business trips of up to say another 80miles. LR, although another £100/m more expensive it get rids of ever needing to think about range on a daily basis.
In pure financial terms leasing or renting is absolutely the worst way to acquire anything. You are essentially spending money to gain usage of someone elses asset for a pre determined time period.
The attraction is 'cheaper' short term costs but longterm makes no financial sense.
With EVs people often use man logic of 'something better coming tomorrow' to justify leasing, but there is always something better coming tomorrow, so by that logic you should rent everything and own nothing.
Equally the other commonly used man logic is 'I can invest the money saved short term better else where', how many people actually do that, and achieve a better return than the finance cost of leasing?
Just because everyone is doing something doesn't make it a good financial choice for your own situation.
Not sure I agree, but we are comparing apples with pears here.
The particular circumstances at the moment have, I believe, pushed the balance in favour of leasing. If salary sacrifice is an option (as it appears to be from the post), you will be getting a brand new car with a market-rate lease of £800 per month for less than £400 per month, depending on your employer's scheme and your marginal tax rate. You will likely pay no extra for insurance (including for up to 3 other named drivers), high-value road tax, maintenance costs, breakdown cover, replacement tyres.
Once the BIK rate returns to 'normal' values, I agree the pendulum probably swings back the other way.
DOI: My first lease this year following years of buying.
25000 miles a year is a lot for a lease, but why not at least get a quote and do the sums for yourself?
The particular circumstances at the moment have, I believe, pushed the balance in favour of leasing. If salary sacrifice is an option (as it appears to be from the post), you will be getting a brand new car with a market-rate lease of £800 per month for less than £400 per month, depending on your employer's scheme and your marginal tax rate. You will likely pay no extra for insurance (including for up to 3 other named drivers), high-value road tax, maintenance costs, breakdown cover, replacement tyres.
Once the BIK rate returns to 'normal' values, I agree the pendulum probably swings back the other way.
DOI: My first lease this year following years of buying.
25000 miles a year is a lot for a lease, but why not at least get a quote and do the sums for yourself?
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