Salary sacrifice prices

[Basicbob]

Hi,

My model 3 is coming up for renewal and I have some interesting quotes.

I currently pay £440 all in net for 3 years.
I’ve been offered a 1 year extension for £420
A new model 3 (facelift) is quoted at £570 a month.
A new model Y is quoted at £520 a month.

There’s prices don’t make much sense especially the facelift model 3 which is now £39,995.

What would you do if you were in my shoes?

 

[WannabeOwner]

prices don’t make much sense especially the facelift model 3

Finance is different on the new M3 - plenty of demand from "me first" punters, so no need to offer any incentives.

What would you do if you were in my shoes?

If you are happy with the current car, and not a very high mileage driver (i.e. you might want to change if high mileage means things more likely to need fixing) I'd stick with what you have got, and let the new Highland model settle down for a year

 

[btc1k]

Hi,

My model 3 is coming up for renewal and I have some interesting quotes.

I currently pay £440 all in net for 3 years.
I’ve been offered a 1 year extension for £420
A new model 3 (facelift) is quoted at £570 a month.
A new model Y is quoted at £520 a month.

There’s prices don’t make much sense especially the facelift model 3 which is now £39,995.

What would you do if you were in my shoes?

I wouldn't pay these crazy Salsac prices, daylight robbery.

My 3 is £285 a month net through my own Ltd Co.

Also don't forget that anyone taking out a lease/salsac in recent years, and trying to compare that with prices now - interest rates have risen substantially and the car is financed....

 

[MrT3]

I wouldn't pay these crazy Salsac prices, daylight robbery.

My 3 is £285 a month net through my own Ltd Co.

You don't have a choice if your employer offers a salary sac scheme. They only provide a single leasing company to deal with and given they have a captive audience they don't have to be as competitive as they might otherwise be as it will still offer the employee a saving over personally financing/leasing an EV.

Is your £285 including insurance? Most SS schemes do, and replacement tyres etc.

 

[GeorgeSymonds]

If you locked into a scheme a few years ago you are probably doing ok (but the company providing the car probably aren’t). Today depreciation is more significant and therefore any company setting the prices today will factor that in.

If you’re happy with the current car, stick with it,
if you fancy a MY, go for it,
if you fancy a M3 highland, I’d personally wait until we get real world reviews in the uk and I suspect prices will soften slightly

 

[Leejmoff]

its a no brainer, stick with it for another year then decide.

 

[Scog]

Current prices for NHS fleet salary sacrifice coming in between £475-£625 over 36months inc EV chargers.

I'm considering it still, have been for a few weeks. I'm mid 30's Band 7, just below the higher tax band but overtime can take me over it. I'm leasing with a view to buying it after the 36months, I have very few outgoings and I've wanted a Tesla for 5-10 years. My current car barely achieves 60miles per charge which is fueling this decision.

Pension wise I'm not really concerned, the world is very much going to sh*t and state pension age already upto 68. I don't expect to live that long and if I do, the world will be a very dark place.

Even with a less grim outlook, I think I'd rather have +3years of fun in a Tesla while I can, rather than a few extra quid when I'm an old mess.

I've tried to convince myself I don't need this, I'm well beyond the 5-day rule (into week 3 now), 4 test drives deep...

 

[MrT3]

I'm considering it still, have been for a few weeks.

MY or M3? If M3 then I'd wait a month or two when prices should soften.

 

[MrBadger]

Pension wise I'm not really concerned, the world is very much going to sh*t and state pension age already upto 68. I don't expect to live that long and if I do, the world will be a very dark place.

I don’t know about NHS pension, but other than state pension you can normally draw on them from age 55. So you could potentially retire with pension in ~20 years time especially if you bump up contributions to it. Or even earlier if you built up a savings pot and didn’t need the pension.

 

[Scog]

MY or M3? If M3 then I'd wait a month or two when prices should soften.

M3 2023 onwards (Highland), I thought the prices were already quite low compared to past, are they expected to drop some more?

I don’t know about NHS pension, but other than state pension you can normally draw on them from age 55. So you could potentially retire with pension in ~20 years time especially if you bump up contributions to it. Or even earlier if you built up a savings pot and didn’t need the pension.

I'm unlikely to be drawing on mine from 55, I have laughable contributions over the bulk of my 10 year career at my last job (low base salary but abundance of on-call/overtime, my mistake for staying.) I've been on the NHS pension for around 1 year now but I also can't see myself doing this for 20 years, the only way up from Band 7 is more management and more meetings. I enjoy the technical side of work. I'll either go a completely different direction or throw the rope up.


As for my current car and main driver for considering the Tesla...I charged to 100% this weekend then drove less than 20 miles (5-10 small trips) and I have 57% battery left. That equates to barely 30miles left. I'm lucky if I get 60miles per charge now. I want that Tesla range, I want them superchargers.

 

[MrT3]

M3 2023 onwards (Highland), I thought the prices were already quite low compared to past, are they expected to drop some more?

Tesla’s finance is expensive at the moment and I expect their interest rate to drop once initial demand is over. Whether your lease company uses Tesla finance or not I don’t know - worth comparing against the MY as the M3 should be cheaper just based on the cash purchase price.

 

[ringi]

It is being assumed that demand for 3 year old MY will remain higher then 3 year old M3.

 

[Adopado]

I'm unlikely to be drawing on mine from 55, I have laughable contributions over the bulk of my 10 year career at my last job (low base salary but abundance of on-call/overtime, my mistake for staying.) I've been on the NHS pension for around 1 year now but I also can't see myself doing this for 20 years, the only way up from Band 7 is more management and more meetings. I enjoy the technical side of work. I'll either go a completely different direction or throw the rope up.

If you're feeling a bit jaded now you will be ready to top yourself by the time you are in your mid 50s (I certainly was ... and I'm only half joking)! I managed to bail out at 57 and never regretted it. My own recommendation is to do everything you can to secure your future.

 

[UrbanSplash]

Current prices for NHS fleet salary sacrifice coming in between £475-£625 over 36months inc EV chargers.

I'm considering it still, have been for a few weeks. I'm mid 30's Band 7, just below the higher tax band but overtime can take me over it. I'm leasing with a view to buying it after the 36months, I have very few outgoings and I've wanted a Tesla for 5-10 years. My current car barely achieves 60miles per charge which is fueling this decision.

Pension wise I'm not really concerned, the world is very much going to sh*t and state pension age already upto 68. I don't expect to live that long and if I do, the world will be a very dark place.

Even with a less grim outlook, I think I'd rather have +3years of fun in a Tesla while I can, rather than a few extra quid when I'm an old mess.

I've tried to convince myself I don't need this, I'm well beyond the 5-day rule (into week 3 now), 4 test drives deep...

That’s madness. My wife has an etron GT for £500 ish a month. Nearly £90k of car.

 

[btc1k]

That’s madness. My wife has an etron GT for £500 ish a month. Nearly £90k of car.

I'm always left wondering …. it almost doesn't matter how expensive it is, there is a strange allure of salary sacrifice, no matter what the cost for some.

I recall doing a calculation for a colleague on an Audi - it actually worked out *cheaper* to lease the car personally post-tax and take 45p/mile from his employer..... by about £80/month. They still went for salsac.... the mind boggles.

 

[Steve-R]

I'm always left wondering …. it almost doesn't matter how expensive it is, there is a strange allure of salary sacrifice, no matter what the cost for some

For me, the only reason I have a Tesla now is because it's through salary sacrifice. I unfortunately missed the boat (pun intended) for the 2023 Model 3's with the cheap finance, but my salary sacrifice came to £615 per month (last I checked it's up to £635 for new agreements now) which includes insurance, AA breakdown and 4 tires over the policy.

Compare that to the current Tesla personal contract hire rates, it's £686 with £6000 down or £833 with nothing down (if that's even possible) plus there is then the insurance ranging from £60-120 per month and proper breakdown cover and tires.

I guess private hire deals depend on their inventory levels and desire to get rid and any manufacturer deals so they could be cheaper at times, depending on the model, but I think the salary sacrifice does work out better, at least for me as I couldn't afford to buy via PCP/HP.

 

[Carts850]

Agree. The gross figures are crazy, but that's where someone is making some serious money. I, and my colleagues, can only really concern yourself with the net figure, the effect on your pay.
Some guys grabbed Taycans for £600 a month net a couple of years back.
My model 3LR is £375 a month over 3 years for 14k miles a year.
Now it's more like 500 for a Y.
No deposit , no bills.
If it works for you that's all that matters.

 

[Steve-R]

Agree. The gross figures are crazy, but that's where someone is making some serious money. I, and my colleagues, can only really concern yourself with the net figure, the effect on your pay.
Some guys grabbed Taycans for £600 a month net a couple of years back.
My model 3LR is £375 a month over 3 years for 14k miles a year.
Now it's more like 500 for a Y.
No deposit , no bills.
If it works for you that's all that matters.

When did you take that lease out though? I think it's unlikely to find anywhere now where you can get a M3LR for that price given the interest rates but would be interested (out of perverse curiosity) to know what scheme that was.

When I first tried to sign-up for the old model it was around £585 for the same spec (paint+towbar) and then by the time the new one was out rates were up and Tesla deals removed. I agree the lease company are making money out of it and probably refinancing when they can and not passing on the savings, but I'm paying the same now as I did for my old car and will be saving the mileage costs due to home charging at 7.5p

 

[Carts850]

Sorry yes that's what I meant really. Snagged my M3 in December 21.
Had it 2 years with 1 more to go.
Get a Y next week.
Added some stuff to it but could have been sub £500 a month. LR again.

 

[Steve-R]

Sorry yes that's what I meant really. Snagged my M3 in December 21.
Had it 2 years with 1 more to go.
Get a Y next week.
Added some stuff to it but could have been sub £500 a month. LR again.

That sub £500 is still a good deal, just checked my provider for the Model Y and it was over £600 too for the LR, who is the provider? Just for others benefit as I had to go for 4 years to make it as cheap as possible!