TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker and becoming a Supporting Member. For more info: Support TMC
Start a Discussionhttps://teslamotorsclub.com/tmc/tags/

Model S (with no add-ons) or nothing!

Discussion in 'The UK and Ireland' started by PR10, Jul 6, 2017.

  1. PR10

    PR10 Member

    Joined:
    Jul 6, 2017
    Messages:
    11
    Location:
    London
    Hi Tesla owners

    Hope everyone is well.

    I have ordered a Tesla Model S through my company and my cooling off period ends tomorrow and would love some advice please as not sure whether to cancel or not! I run a small company and have never considered a company car and especially never considered such an expensive car before but the 100% FYA allowance may just be too good to turn down! Some questions below...

    1. I don't think I can justify the extra expense on the enhanced autopilot. As much as I'd love to show it off to friends, is it really necessary though?! My commute to work every day is about 18 miles each way. Drive takes about 25 - 30 mins on average and am on the motorway for about 10 mins of that journey. There is occasional traffic but not usually anything too bad. I understand the new models won't have any autopilot features at all if I don't add the enhanced one on. What are people's thoughts?

    2. Anyone got solid black paint & happy with their decision? Again trying to keep costs down but like the look of the midnight silver!

    3. For business owners...with the £4,500 plug in grant and the 100% FYA would it be stupid not to jump on board now while I can?! I'm conscious of the Model 3 coming out and being more affordable but not sure I can wait until early 2019 now as my leased Qashqai runs out end of this year. Plus after test driving the Tesla I'm not sure I can last that long anyway!

    4. When trying to work out finances, Tesla told me the BIK tax for next 3 years was 9%, 13% and 16% but 2020/21 hasn't been announced yet. But when I searched for this online it seems HMRC have proposed it be 2% that year. Does anyone know if this is accurate? Even if it's just a proposal, surely this will mean it will be at least under 10%?

    5. Is anyone in the middle of a PCP with Tesla? I just wonder if they work like other car dealers and offer to exchange your car before the end of your agreement? I would be taking a 48 month PCP with them but potentially would want the Model 3 after 2 or 3 years. If I downgraded would that work in my favour with the equity etc? My big concern is when the vehicle is sold later, the income from the sale is considered as 100% profit and taxed accordingly. So if I give the Model S back at the end for the GFMV of £30K, I will personally have to fork up the £6K tax bill. Just wondered if I can do things to get that figure down at all, like exchanging for the Model 3 for example!

    Ok that's all for now I think. Sorry for so many questions but this decision is driving me crazy! The alternative is just outright leasing a Q3 or A5 or something for 3 years where at least I'll be 100% sure what my payments are. I'm also on the cusp of the higher tax bracket which would double the BIK every year so there's a lot of unknown factors around the Tesla. Problem is I've now driven one ;)

    Cheers

    Paul
     
  2. DJP31

    DJP31 Member

    Joined:
    Aug 30, 2015
    Messages:
    412
    Location:
    UK
    Tough decisions! How much difference does the EAP make to the finance? I wouldn't have thought it would make that much, maybe £25-£30PM? I have midnight silver and it's a great colour but I'd sacrifice that in favour of EAP.

    The FYA is very attractive and if you have the profits to set it against why not take advantage of it. I'm not sure about the BIK but think the intention was to dramatically reduce it.

    The PCP question puzzles me. If you hand it back at the end of the 4 years that's it, you've not made a profit so no tax. What Tesla sell it for after that is down to them. If you p/x it earlier and have equity after the finance is settled then that would be a taxable receipt, but presumably offset by the FYA again (assuming still around).
     
  3. PR10

    PR10 Member

    Joined:
    Jul 6, 2017
    Messages:
    11
    Location:
    London
    Thanks for the reply! It adds around £35 per month for the EAP but then I have to consider larger BIK payments as that increases the P11D value. Plus also the taxable receipt would be higher at the end too. So all adds up!

    I wish you were right about the handing it back at the end but I'm told that even if I just hand it back I will have the 20% tax to pay on the value of the car at the time. I'd love it if I was wrong because if I can just hand it back and avoid an approx tax bill of £6K that would make my mind up straight away!
     
  4. DJP31

    DJP31 Member

    Joined:
    Aug 30, 2015
    Messages:
    412
    Location:
    UK
    If you hand the car back you owe £30k on the finance. Tesla clear the finance, you have not made a profit all you have done is clear your debt. If you get back more than £30k then yes, on the balance above £30k you would be taxed.
     
  5. PR10

    PR10 Member

    Joined:
    Jul 6, 2017
    Messages:
    11
    Location:
    London
    Thanks for this mate. You 100% about this?
     
  6. Ciaopec

    Ciaopec Member

    Joined:
    May 3, 2016
    Messages:
    375
    Location:
    Ohio
    1. I drive greater distances and the original autopilot has been a real boon. Makes every drive so much more relaxing. I have not looked recently, but I believe any car you purchase will have necessary equipment on board and it can be activated later for a price?
    2. I have black/black with a white headliner. All personal preference but I can tell you my wife and I both love it. Seems very elegant and it is not our first black/black car.

    Lastly, I doubt that you will regret purchasing even the most basic Tesla. I will never be able to drive anything less than electric again.

    Cheers!
     
  7. DJP31

    DJP31 Member

    Joined:
    Aug 30, 2015
    Messages:
    412
    Location:
    UK
    Yes. You still owe £30k so have to pay that off before "profit" enters the conversation. If the car was worth e.g. £35k and you didn't want another Tesla you would pay the finance off, sell the car and then there's £5k taxable income to the business. If you p/x it then the £5k would go towards the deposit for the new one, and be treated as income.
     
  8. DJP31

    DJP31 Member

    Joined:
    Aug 30, 2015
    Messages:
    412
    Location:
    UK
    Forgot to mention, hopefully you've used a referral code for £750 off and free supercharging. If not please feel free to use mine:

    My Tesla Referral Code
     
  9. WannabeOwner

    WannabeOwner Active Member

    Joined:
    Nov 2, 2015
    Messages:
    1,606
    Location:
    United Kingdom
    #9 WannabeOwner, Jul 7, 2017
    Last edited: Jul 7, 2017
    You, me and plenty of others :)

    I use it (AP1) on all long journeys, and usually even short journeys if on (say) motorway.

    It makes a big difference on longer journeys. I had heard people say this before I had it, and didn't really believe them - until I owned one myself. I have a regularly journey to see performance (concert / play) leaving at 10PM and driving 1h15m home, all dual carriageway bar first/last few miles. In past (manual pilot!) it was common for me to be fighting sleep the last 10 miles of dual carriageway; that has never happened since (12 months ownership), and long 4 hours journeys are much less tiring than before. I would not have thought that those micro-adjustments to the wheel took a strain on the driver.

    And in bumper-to-bumper nudging-forwards traffic its fab.

    But my car does 25K miles a year, so slightly different to your situation :)

    I am lucky in having a (rural) straight near by that is perfect for launch and it ends in a tight double-bend, and has good road markings middle and edge. The wheel turns plenty enough (on AP1), in the bends, to freak out my passengers! but hard to justify for demo alone ... that said, I very rarely do launch in normal driving - anything in the cabin that wasn't nailed down would wind up in the boot! so justifying that (apart from demo) was hard, and 90% of your friends will have been for the Demo Drive in the first few months ... but the cooking-version is no slouch either. (One of the best comments I had was "Crikey, the choices START at 'Sports mode'?" :)

    If (when?!!) we buy a second one it will be non-performance for maximum range, AWD, and with AP for driver fatigue reduction.

    I'm planning to buy the car off the company once the BIK starts to rise ... but I've had mine a year longer than you already ... I didn't finance it for that reason (likely early-redemption penalties etc.) But with pace-of-change on Tesla Tech a Lease option may be preferable to many people.
     
  10. PR10

    PR10 Member

    Joined:
    Jul 6, 2017
    Messages:
    11
    Location:
    London
    Thanks for the advice!
     
  11. PR10

    PR10 Member

    Joined:
    Jul 6, 2017
    Messages:
    11
    Location:
    London
    Thanks for advice. Added EAP on in the end, sounds to good to be without! What do you mean though with your last sentence? Tesla tech is just through updates anyway so why would a lease be preferable plus they are hundreds of pounds more per month!
     
  12. WannabeOwner

    WannabeOwner Active Member

    Joined:
    Nov 2, 2015
    Messages:
    1,606
    Location:
    United Kingdom
    In the year I've had mine: bigger battery, more sensors (AP2). Perhaps my AP1 will stagnate on software updates ... time will tell
     
  13. sparkypete

    sparkypete Member

    Joined:
    Feb 7, 2017
    Messages:
    98
    Location:
    England
    PR10 - I'm in the same boat, buying same car through Ltd company.

    My take on it was this:

    I have gone for a 2 year PCP deal as a business purchase. I will then buy the privately from the company after the 2 years for the price Tesla quote.

    If you add EAP after, you get a VAT invoice and can claim back the VAT as it's software and has no P11D effect. Buying at the time of order increases P11D. So it's more expensive but VAT deductible.

    Yes - currently in 3 years time, BIK rate will reduce to 2%. So then it would be mad to run the car privately, so sell on Autotrader and buy a new one as a company car, adding EAP afterwards.

    I'm not an accountant but reading around various forums this seems to be legit.

    Also - your home charger installation is a valid business expense.
     
  14. PR10

    PR10 Member

    Joined:
    Jul 6, 2017
    Messages:
    11
    Location:
    London
    Thanks buddy! Ordered mine three weeks ago with EAP. Just saw prices have been dropped though :(
     
  15. sparkypete

    sparkypete Member

    Joined:
    Feb 7, 2017
    Messages:
    98
    Location:
    England
    Have you checked your MyTesla->View Spec yet? You'll probably get a nice surprise.
     
  16. PR10

    PR10 Member

    Joined:
    Jul 6, 2017
    Messages:
    11
    Location:
    London
    Why did you tease me like that?! Just checked, nothing's changed :(
     
  17. sparkypete

    sparkypete Member

    Joined:
    Feb 7, 2017
    Messages:
    98
    Location:
    England
    Seriously - you need to contact your salesperson then. You should have a £2500 discount at least. Yours should be more because of the EAP price drop. Not joking - message me directly if you like and you can refer to my order with Tesla. On the forums everyone who had not yet taken delivery was saying they had the discount applied without having to ask.

    Here's mine from View Spec

    upload_2017-7-31_16-3-26.png
     
  18. PR10

    PR10 Member

    Joined:
    Jul 6, 2017
    Messages:
    11
    Location:
    London
    Just called them, it's applied their end but just not showing up mine yet! Thanks mate, very happy :)
     
  19. sparkypete

    sparkypete Member

    Joined:
    Feb 7, 2017
    Messages:
    98
    Location:
    England
    See - I told you it would be a nice surprise! Enjoy your Tesla - will see you on the M4 some time no doubt :)
     
  20. DJP31

    DJP31 Member

    Joined:
    Aug 30, 2015
    Messages:
    412
    Location:
    UK
    Unless the bottom falls out of the Tesla second hand market in which case you'll hand the car back and start again?
     

Share This Page