Salary sacrifice car scheme

Muhren

scotsbob wrote: »

If the insurance is included as part of a group scheme then if you leave the scheme in the future you will not be able to have any no claims bonus. Your insurance will most likely start at zero again.

After you have paid out £9900 ( 36 times £275) you will have nothing at the end of that period, you hand the car back.

This is what I am trying to get my head around, as the money that I will be paying in will be affectivetly dead money as I will have nothing to show for it once the 3 years are up.

I am trying to weigh up what is the best option for me as I do so many miles and this takes the risk out of having hefty repair bills.

Muhren

redmike123 wrote: »

Who owns the car at the end of the agreement ? I think it might be your employer.

It will go back to the leasing company.

OddballJamie

Muhren wrote: »

This is what I am trying to get my head around, as the money that I will be paying in will be affectivetly dead money as I will have nothing to show for it once the 3 years are up.

I am trying to weigh up what is the best option for me as I do so many miles and this takes the risk out of having hefty repair bills.

It won't be dead money because you are getting use out of it. It's just rent.
Work out how much a new one is from a broker, add three years of insurance, servicing, tyres, brakes' wipers even bulbs. Then minus what you think you can sell it for in three years with 75k on it.

Don't forget to include interest if you need finance, if you don't then include the lost interest from the missing savings.

scotsbob

OddballJamie wrote: »

It won't be dead money because you are getting use out of it. It's just rent.
Work out how much a new one is from a broker, add three years of insurance, servicing, tyres, brakes' wipers even bulbs. Then minus what you think you can sell it for in three years with 75k on it.

Don't forget to include interest if you need finance, if you don't then include the lost interest from the missing savings.

To all the above also remember that you are sacrificing salary and if you are in a pension scheme it will reduce your pension.

Remember if you are getting £3300 less salary then your company are not having to pay the employers NI payments nor any pension contributions on that £3300 so it is in their interest to try to get as many employees as possible to join.

OddballJamie

scotsbob wrote: »

To all the above also remember that you are sacrificing salary and if you are in a pension scheme it will reduce your pension.

Remember if you are getting £3300 less salary then your company are not having to pay the employers NI payments nor any pension contributions on that £3300 so it is in their interest to try to get as many employees as possible to join.

It also increases loyalty as the staff will be less likely to leave with the lease outstanding.

Muhren

This is giving me a headache! The more I think about the more muddy the water becomes.

OddballJamie

Compare it to prices of leasing separately from you job, if it's about the same price do it that way as there's less pitfalls. You may even find it cheaper.
There's a guy at my partners work who pays well over £200 a month on a bog standard Corsa through salary sacrifice, mental.

albionrovers

Pay as you go motoring. Works for me.

Find out if you are liable for any scrapes and dinks at the end of the lease. I suspect not given you have maintenenance. Worth checking though.

Muhren

OddballJamie wrote: »

Compare it to prices of leasing separately from you job, if it's about the same price do it that way as there's less pitfalls. You may even find it cheaper.
There's a guy at my partners work who pays well over £200 a month on a bog standard Corsa through salary sacrifice, mental.

I have looked at leasing privately and it is more expensive without having the benefits of insurance and maintenance etc.

Muhren

albionrovers wrote: »

Pay as you go motoring. Works for me.

Find out if you are liable for any scrapes and dinks at the end of the lease. I suspect not given you have maintenenance. Worth checking though.

You are allowed to have a certain amount of chips and scratchs within a defined limit.