Salary sacrifice car scheme

Muhren

From a finacial point of view I have worked it out that if I sold my car and was to go for the scheme, over the course of the 3 years I would be better off by £2000.

albionrovers

Muhren wrote: »

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

Indeed, but are you personally liable for the cost if you go over that limit or will your company foot the bill?

Muhren

albionrovers wrote: »

Indeed, but are you personally liable for the cost if you go over that limit or will your company foot the bill?

I would have to pay for the repair work.

gingernm

Hi,

I've joined my company salary sacrifice car scheme. Sounds same as yours, no deposit, all costs covered, only have the monthly cost + diesel to pay for.

Way I worked out if it was worthwhile was to take the monthly charge, then deduct 1/12 annual insurance cost, VED, expected maintenece (tyres etc), servicing and breakdown cover. Which left a monthly amount less than I would have paid for a loan. Note you never own the car, with a loan I would have something with equity at the end.

I also visited my local main dealer and priced up the same vehicle on their lease. Also checked online deals.

The work scheme worked out best for myself, having now been in for almost 6 months without any issues.

At the end of the 3 years, the car will be assessed using BVRLA guide, anything outside this I will be liable for. I will have the car valeted prior to return and any remedial work carried out.

Rob.

Muhren

If I wasn't to go for this scheme what would people recommend that I do?

As I have said I do 500 miles a week with the majority being motorway miles, where I can get around 46 mpg if I drive very sensibly. I think my car is worth 3.5-4k, it has high running costs. Would a small diesel be the way to go if I sell mine and get something of the same price but with lower running costs and improved mpg?

Muhren

I have seen a 2003 Audi A4 on may way to work that has been converted to LPG that is up for private sale for £1750. Obvisously I don't know the mileage, service history or MOT status but could be something that I look into.

pappoosp

Hi,

I hope you have finished your lease car scheme by now. can you tell me how much you paid at the end of the agreement to keep the car and what was the total cost?

gingernm wrote: »

Hi,

I've joined my company salary sacrifice car scheme. Sounds same as yours, no deposit, all costs covered, only have the monthly cost + diesel to pay for.

Way I worked out if it was worthwhile was to take the monthly charge, then deduct 1/12 annual insurance cost, VED, expected maintenece (tyres etc), servicing and breakdown cover. Which left a monthly amount less than I would have paid for a loan. Note you never own the car, with a loan I would have something with equity at the end.

I also visited my local main dealer and priced up the same vehicle on their lease. Also checked online deals.

The work scheme worked out best for myself, having now been in for almost 6 months without any issues.

At the end of the 3 years, the car will be assessed using BVRLA guide, anything outside this I will be liable for. I will have the car valeted prior to return and any remedial work carried out.

Rob.

KB348

Hello everyone
I found this thread v useful.
This is first time I am thinking to lease the car. So need advise please. Let me explain my calculations:

Present situation: Merc E220 57 reg. Annual cost which I will save if I will choose Lease: 1600 (insurance 900 + road tax 275 + service/ MOT/ maintenance = 300, tyres = 125)

Salary=37000, intending to choose salary sacrifice for around 5000 to bring down my salary to 32K. I have 3 kids and can qualify for 3k child tax credit plus 1600 saving as explained above. What do you think about this? I am not sure if employer contribute towards some lump sum as well? I am not sure about 'tax on benefits' amount? I can also get 5k+ for selling my current car.
I am only interested in leasing BMW 5 series or preferably Merc E220. 10K miles / year would be enough for me (both business & personal). Many thanks for your advice.
Cheers.