Model 3 Leasing UK

[FastLaneJB]

Been nagging my company to get set up with Octopus EV salary sacrifice. Finally convinced them and it all got set up today.

Been on for the first time to quote and the prices are crazy expensive. MY RWD, 15k Miles, 48 months (40% tax payer), has a net price of £677 per month.

£601 on Leaseloco and £653 direct with Tesla. I know it includes insurance but it's way more than I expected. Even a M3 RWD is cheaper with my own insurance via tesla direct than with OctopusEV. Are my expectations way out or is there something odd here?

This all depends on what your tax band is. Say the car is £1,000 before tax on lease with insurance, tyres and so on which should be around a Performance Model money I believe then:

20% tax: £800 a month
40% tax: £600 a month
45% tax: £550 a month
60% tax (£100k to £125k roughly salary): £400 a month if whole payment comes out of this band

You do have to add back 2% BIK but point is it's sadly a system that helps those that earn more than those that earn less. Makes sense in my opinion if you pay at 40% or higher but at 20% I'd maybe think twice.

Your at 40%, seems expensive to be honest if that's an after tax figure. Don't have to answer but if just into 40% and taking the car brings you down some is part coming out of 20% tax?

 

[MadManMark]

Been nagging my company to get set up with Octopus EV salary sacrifice. Finally convinced them and it all got set up today.

Been on for the first time to quote and the prices are crazy expensive. MY RWD, 15k Miles, 48 months (40% tax payer), has a net price of £677 per month.

£601 on Leaseloco and £653 direct with Tesla. I know it includes insurance but it's way more than I expected. Even a M3 RWD is cheaper with my own insurance via tesla direct than with OctopusEV. Are my expectations way out or is there something odd here?

When my company was first exploring this we looked at and discounted OctopusEV due to the pricing. Went with weevee instead. Is your company discounting the cost of the sacrifice by removing the employers NI they are saving? My gross cost for a model 3 LR delivered in September 2021 on a 1+35/20k miles per year lease including tyres and insurance for me/wife was £832. That gross figure includes adding back on the BIK. I’m fortunate to fall into the 100-125k sweet spot. If I wasn’t spending the money on the car I’d be stuffing it in the pension. I refuse to pay a 62p marginal rate - it’s a scandal.

 

[FastLaneJB]

When my company was first exploring this we looked at and discounted OctopusEV due to the pricing. Went with weevee instead. Is your company discounting the cost of the sacrifice by removing the employers NI they are saving? My gross cost for a model 3 LR delivered in September 2021 on a 1+35/20k miles per year lease including tyres and insurance for me/wife was £832. That gross figure includes adding back on the BIK. I’m fortunate to fall into the 100-125k sweet spot. If I wasn’t spending the money on the car I’d be stuffing it in the pension. I refuse to pay a 62p marginal rate - it’s a scandal.

I agree. That tax rate needs to go, it's daylight robbery.

My work sadly doesn't offer this scheme or I'd likely jump on it (Though no Plaid yet here which is what I'd likely want).

 

[MadManMark]

I agree. That tax rate needs to go, it's daylight robbery.

My work sadly doesn't offer this scheme or I'd likely jump on it (Though no Plaid yet here which is what I'd likely want).

I mean, its just bad policy, for a variety of reasons. Slipped in as leaving present by the last labour government and the current shower have done nothing about it for the last 13 years. As a minimum they should have increased the income at which it kicks in in line with inflation but they have not done so and so it is starting to affect professionals on relatively modest incomes. It is seriously distorting the labour market and together with the pension annual/lifetime allowances is causing major problems with staffing in the NHS. The tax system should be fair, progressive and encourage work - the current set of policies are ticking none of those boxes. What a mess.

 

[FastLaneJB]

I mean, its just bad policy, for a variety of reasons. Slipped in as leaving present by the last labour government and the current shower have done nothing about it for the last 13 years. As a minimum they should have increased the income at which it kicks in in line with inflation but they have not done so and so it is starting to affect professionals on relatively modest incomes. It is seriously distorting the labour market and together with the pension annual/lifetime allowances is causing major problems with staffing in the NHS. The tax system should be fair, progressive and encourage work - the current set of policies are ticking none of those boxes. What a mess.

Indeed but they won't do anything about it as they need more tax money. Truss's government hinted at removing this but we all know how well that all went. Move the bands around sure but a 20% - 40% - 60% - 40% - 45% makes no sense to me.

I've moved beyond this into 45%. Stuff £40k a year into pension but no means to avoid the 60% anymore. I'm pretty sure Robin Hood wouldn't have even taken 60%.

 

[markbmcfc]

This all depends on what your tax band is. Say the car is £1,000 before tax on lease with insurance, tyres and so on which should be around a Performance Model money I believe then:

20% tax: £800 a month
40% tax: £600 a month
45% tax: £550 a month
60% tax (£100k to £125k roughly salary): £400 a month if whole payment comes out of this band

You do have to add back 2% BIK but point is it's sadly a system that helps those that earn more than those that earn less. Makes sense in my opinion if you pay at 40% or higher but at 20% I'd maybe think twice.

Your at 40%, seems expensive to be honest if that's an after tax figure. Don't have to answer but if just into 40% and taking the car brings you down some is part coming out of 20% tax?

Thanks for the reply. I'm not too sure with regards to your last question as I can't get my head around the maths, but I don't mind saying salary is £65k. Using the quote tool, the price doesn't change until I put in a salary of over £100k.

It breaks it down as £1116 sacrifice, -£446 tax, -£22 NI, £30 BIK. Not sure if my employer is passing on the NI saving but I assume not if it's only £22 saved? How do we work out what it would be if they were passing it on?

Cheers

Mark

 

[JupiterMan]

Thanks for the reply. I'm not too sure with regards to your last question as I can't get my head around the maths, but I don't mind saying salary is £65k. Using the quote tool, the price doesn't change until I put in a salary of over £100k.

It breaks it down as £1116 sacrifice, -£446 tax, -£22 NI, £30 BIK. Not sure if my employer is passing on the NI saving but I assume not if it's only £22 saved? How do we work out what it would be if they were passing it on?

Cheers

Mark

I'm not an accountant but the quote looks wrong to me.

at your level of income your personal NI saving should be 3.25% of the sacrifice so £36.27. look's like the quote has based the NI saving on the net income sacrifice rather than the gross?

The employer NI is definitely not included, that would be 15.05% so would save you a further £167.96 if passed back by your employer.

 

[asl3312]

Does anyone have any experience ordering through KINTO?
We've ordered via NHS SS, but not heard anything since filing the paperwork at the beginning of January. After bugging the scheme coordinator we've seen the email confirmation of the order but no one can tell us anymore. How long should it take?

 

[Callumlj]

I leased through leasing options and it has taken 3 weeks from first enquire to the car been delivered next week

 

[asl3312]

I leased through leasing options and it has taken 3 weeks from first enquire to the car been delivered next week

Wow that's fast.. I feel we are getting the runaround

 

[giorgosa]

Wow that's fast.. I feel we are getting the runaround

I ordered a company car through Lex (M3 RWD) on 14th of December. I took delivery of the car on 21st of December (+6,000 supercharger miles for which I was unaware when I ordered)

 

[StevieEV]

Been nagging my company to get set up with Octopus EV salary sacrifice. Finally convinced them and it all got set up today.

Been on for the first time to quote and the prices are crazy expensive. MY RWD, 15k Miles, 48 months (40% tax payer), has a net price of £677 per month.

£601 on Leaseloco and £653 direct with Tesla. I know it includes insurance but it's way more than I expected. Even a M3 RWD is cheaper with my own insurance via tesla direct than with OctopusEV. Are my expectations way out or is there something odd here?

That seems high to me too. My work SS order is Model 3 Performance White with White interior, 48 months on 12k miles per year and that's £609. That's included all service things, insurance, tyres etc. Ordered in August, it's roughly the same price now, slightly higher.

 

[asl3312]

Wow that's fast.. I feel we are getting the runaround

Finally received our RN yesterday

 

[iamonfire]

Hi all, I have read through most of the recent posts and I am considering a company salary sacrifice scheme which gets me a Tesla model 3- RWD, no add ons and standard fitting which comes to net of £501 and model Y comes to £522 - both for a 10 k miles per year. Both are inclusive of insurance the usual you get with salary sacrifice. No upfront payment either. Are these reasonable? I have researched and I am not able to find anything better.

I have heard people in the NHS managed to get them for £400 odd- but may be it was cheaper then or there are other pension related issues which doesn't apply in my case. I am 45% tax payer. Thank you for the advice.

 

[MonkeyTennis]

Hi all, I have read through most of the recent posts and I am considering a company salary sacrifice scheme which gets me a Tesla model 3- RWD, no add ons and standard fitting which comes to net of £501 and model Y comes to £522 - both for a 10 k miles per year. Both are inclusive of insurance the usual you get with salary sacrifice. No upfront payment either. Are these reasonable? I have researched and I am not able to find anything better.

I have heard people in the NHS managed to get them for £400 odd- but may be it was cheaper then or there are other pension related issues which doesn't apply in my case. I am 45% tax payer. Thank you for the advice.

I've been quoted about £900 gross salary sacrifice for a Model 3 RWD with no options (3 year / 10,000 miles per year). I'm new to salary sacrifice but as others probably know already, they are not amazingly competitive deals unless you are a 40-45 % tax-payer (or stuck in 60 % marginal £100-120K land).

 

[MadManMark]

Hi all, I have read through most of the recent posts and I am considering a company salary sacrifice scheme which gets me a Tesla model 3- RWD, no add ons and standard fitting which comes to net of £501 and model Y comes to £522 - both for a 10 k miles per year. Both are inclusive of insurance the usual you get with salary sacrifice. No upfront payment either. Are these reasonable? I have researched and I am not able to find anything better.

I have heard people in the NHS managed to get them for £400 odd- but may be it was cheaper then or there are other pension related issues which doesn't apply in my case. I am 45% tax payer. Thank you for the advice.

It’s easier just to compare gross and you need to know if the gross quote includes the employer giving back the NI they have saved. I pay £832 gross (full NI reduction included) for a M3 LR midnight grey (no other options) with tyres/insurance for me/wife - car was delivered in September 2021.

 

[iamonfire]

Thank you both, I am getting a £916 and just below £900 for model Y and 3 respectively gross. So, it sounds like the going rate. I have decided to get one via salary sacrifice as I am a 45% tax payer and other avenues are more expensive if I am after a Tesla. I did a test drive yesterday and the size of model Y is a definite advantage for a family of 4.

 

[MonkeyTennis]

Just ordered my Model Y Performance, (3 years, 10,000 miles per year) for £1400 / month gross. Ouch. Looking forward to it though! First new car in 13 years....

 

[Masklin]

Just saw this whilst perusing Sky News site...

Drivers leasing new electric cars being overcharged by hundreds of pounds each month, claims clean transport group

Companies have been accused of failing to reflect the strong resale value of cleaner cars when they set their prices, according to a clean transport campaign group. On average, leasing an EV car is 51% more expensive.

news.sky.com

 

[MonkeyTennis]

Just saw this whilst perusing Sky News site...

Drivers leasing new electric cars being overcharged by hundreds of pounds each month, claims clean transport group

Companies have been accused of failing to reflect the strong resale value of cleaner cars when they set their prices, according to a clean transport campaign group. On average, leasing an EV car is 51% more expensive.

news.sky.com

I agree, the costs seem very high. The salary sacrifice schemes also seem to milk all the tax savings back as the "care" package.