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Electric Car Salary Sacrifice - Worth It vs Second Hand Traditional?
Hi,
I need to trade in my old Skoda Superb Diesel as the ULEZ zone may be extending to the end of my street.
Everyone I know keeps telling me how great buying a new electric car on salary sacrifice is, and how it saves so much money, but when I run the numbers it seems vastly more money than buying an equivalent second-hand Euro 5 compliant 4yr old Diesel / Petrol. Even when I adjust for fuel cost, insurance, tax and depreciation my numbers tell me that the electric car is costing me £12.5k more over a 3yr time period.
So what am I missing everyone? Is it just that friends and family are used to leasing/paying interest on their cars and therefore it feels better to them than buying outright?
Help me understand and to justify this to my wife who thinks my numbers must be wrong!
Thanks all,
Jon
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My rough numbers:
Electric Car (Skoda Enyaq iV Estate 82kWh 150kW Slpn+ 80 Auto): ~£650 per month or £23,400 over 36 months. (based on a quote from Zennith our scheme provider)
Fuel Cost: £5 per week or £720 over 36 months
Tax rate: 45% taxpayer
Resale value: £0 as I dont own the car
Total Cost to me: £24,120 over 3 years
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Diesel car (Skoda Kodiaq 2018 Diesel): £22,000
Fuel Cost: £100 per month or £3600 over 36 months
Car Tax: £165 per year or £495 over 36 months
Maintenance: £200 per year or £600 over 36 months
Resale value after 3 years: £15000 (according to MoneyCalculator based on medium depreciation)
Total cost to me:£11,695
------------------------------
So the second-hand Skoda is £12,425 cheaper over 36 months?
I need to trade in my old Skoda Superb Diesel as the ULEZ zone may be extending to the end of my street.
Everyone I know keeps telling me how great buying a new electric car on salary sacrifice is, and how it saves so much money, but when I run the numbers it seems vastly more money than buying an equivalent second-hand Euro 5 compliant 4yr old Diesel / Petrol. Even when I adjust for fuel cost, insurance, tax and depreciation my numbers tell me that the electric car is costing me £12.5k more over a 3yr time period.
So what am I missing everyone? Is it just that friends and family are used to leasing/paying interest on their cars and therefore it feels better to them than buying outright?
Help me understand and to justify this to my wife who thinks my numbers must be wrong!
Thanks all,
Jon
------------------------------
My rough numbers:
Electric Car (Skoda Enyaq iV Estate 82kWh 150kW Slpn+ 80 Auto): ~£650 per month or £23,400 over 36 months. (based on a quote from Zennith our scheme provider)
Fuel Cost: £5 per week or £720 over 36 months
Tax rate: 45% taxpayer
Resale value: £0 as I dont own the car
Total Cost to me: £24,120 over 3 years
-----------------------------
Diesel car (Skoda Kodiaq 2018 Diesel): £22,000
Fuel Cost: £100 per month or £3600 over 36 months
Car Tax: £165 per year or £495 over 36 months
Maintenance: £200 per year or £600 over 36 months
Resale value after 3 years: £15000 (according to MoneyCalculator based on medium depreciation)
Total cost to me:£11,695
------------------------------
So the second-hand Skoda is £12,425 cheaper over 36 months?
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Replies
Does the amount of SS affect pension contributions / accrual?
Comparing an all encompassing (insurance, maintenance etc) new car against a 4year old car is also not comparing like for like, but I do get why you are as it is a comparison of TCO for two options.
The other risk you have is that when Euro 7 comes in in 2025 that ULEZ etc may move to Euro 6 being the new minimum limit.
Of course, monthlies aside you need to try and figure out how the running costs over 3 years would compare to the residual value of a 7 year old Kodiaq. You're still comparing a £40k car to a £22k car though so the Kodiaq will almost certainly come out on top.
However, if you were to look at a Hyundai Kona EV for £30k, I think it'd work out much more favourably.
The OP was considering two giant SUVs (Kodiaq vs Enyaq), the Kona is much smaller, more akin to the Kamiq.