Salary Sacrifice EV - is it worth it?

chile_paul2

flaneurs_lobster said:

Sounds to me like you have the perfect balance - small cheap EV for the little lady to do shopping and school runs and a proper car for the man to do proper manly driving.

I feel I have been misinterpreted here, or more likely have explained myself poorly. My wife's brilliant Nissan Leaf is the main car in the family, I love driving it (when I'm allowed to).

In an ideal world I'd like to give up my car and would be more than happy to ask to borrow my wife's car when she's not using it and it would be sufficient for 90% of our needs - the only downside is it doesn't have the range or the boot size for family holidays.

An alternative option I've considered is sharing the use of her car and going for a hire car option for those journeys where it is either already in use or isn't large enough for the whole family.

Anyway, I'm probably just digging a deeper hole for myself at this point, so I'll just stop digging!!  

sheramber

chile_paul2 said:

So, would be grateful if you fine folks could help me out with my thinking regarding potentially signing up to my companys salary sacrifice EV scheme.

My current position is I own a 2017 plate VW Passat with 58,000 miles on the clock - don't drive that far any more, between 5,000-7,000 miles a year.

I've calculated the costs of continuing to run this current car as:

Depreciation (forecast current value of £11,000 dropping to £5,000 over next 5 years): £1200 per annum
Insurance: £500 per annum
MOT / Service / tyres: £750 per annum
Road Tax: £195
Loss of interest (what I would earn on interest if I sold the car and had the money sitting in bank / investments earning 5%): £550 per annum

Total costs:£3195 per annum / £266.25 per month

My company offers a EV salary sacrifice scheme offering pre-loved cars which are all bundled up with road tax, insurance, servicing etc all included.

The best deals currently are, after the salary sacrifice benefits on tax and NI have been taken into account:
Nissan Ariya (50,000 miles, 22 plate) - £372 a month  
Volkswaged ID.5 (49,000 miles, 22 plate) - £402 a month
Tesla Model Y (55,000 miles, 22 plate) - £428 a month

On all of these cases I'll be between £110 a month and £160 a month worse off - albeit I'll be driving a newer car and will almost certainly make some fuel savings as well.

Am I missing something, why would I make the switch???

Income tax benefit in kind charge?

Woodstok2000

sheramber said:

chile_paul2 said:

So, would be grateful if you fine folks could help me out with my thinking regarding potentially signing up to my companys salary sacrifice EV scheme.

My current position is I own a 2017 plate VW Passat with 58,000 miles on the clock - don't drive that far any more, between 5,000-7,000 miles a year.

I've calculated the costs of continuing to run this current car as:

Depreciation (forecast current value of £11,000 dropping to £5,000 over next 5 years): £1200 per annum
Insurance: £500 per annum
MOT / Service / tyres: £750 per annum
Road Tax: £195
Loss of interest (what I would earn on interest if I sold the car and had the money sitting in bank / investments earning 5%): £550 per annum

Total costs:£3195 per annum / £266.25 per month

My company offers a EV salary sacrifice scheme offering pre-loved cars which are all bundled up with road tax, insurance, servicing etc all included.

The best deals currently are, after the salary sacrifice benefits on tax and NI have been taken into account:
Nissan Ariya (50,000 miles, 22 plate) - £372 a month  
Volkswaged ID.5 (49,000 miles, 22 plate) - £402 a month
Tesla Model Y (55,000 miles, 22 plate) - £428 a month

On all of these cases I'll be between £110 a month and £160 a month worse off - albeit I'll be driving a newer car and will almost certainly make some fuel savings as well.

Am I missing something, why would I make the switch???

Income tax benefit in kind charge?

That's included in the monthly price (at least it is for mine)

sheramber

Woodstok2000 said:

sheramber said:

chile_paul2 said:

So, would be grateful if you fine folks could help me out with my thinking regarding potentially signing up to my companys salary sacrifice EV scheme.

My current position is I own a 2017 plate VW Passat with 58,000 miles on the clock - don't drive that far any more, between 5,000-7,000 miles a year.

I've calculated the costs of continuing to run this current car as:

Depreciation (forecast current value of £11,000 dropping to £5,000 over next 5 years): £1200 per annum
Insurance: £500 per annum
MOT / Service / tyres: £750 per annum
Road Tax: £195
Loss of interest (what I would earn on interest if I sold the car and had the money sitting in bank / investments earning 5%): £550 per annum

Total costs:£3195 per annum / £266.25 per month

My company offers a EV salary sacrifice scheme offering pre-loved cars which are all bundled up with road tax, insurance, servicing etc all included.

The best deals currently are, after the salary sacrifice benefits on tax and NI have been taken into account:
Nissan Ariya (50,000 miles, 22 plate) - £372 a month  
Volkswaged ID.5 (49,000 miles, 22 plate) - £402 a month
Tesla Model Y (55,000 miles, 22 plate) - £428 a month

On all of these cases I'll be between £110 a month and £160 a month worse off - albeit I'll be driving a newer car and will almost certainly make some fuel savings as well.

Am I missing something, why would I make the switch???

Income tax benefit in kind charge?

That's included in the monthly price (at least it is for mine)

How do they know what rate of tax to charge?

MeteredOut

sheramber said:

Woodstok2000 said:

sheramber said:

chile_paul2 said:

So, would be grateful if you fine folks could help me out with my thinking regarding potentially signing up to my companys salary sacrifice EV scheme.

My current position is I own a 2017 plate VW Passat with 58,000 miles on the clock - don't drive that far any more, between 5,000-7,000 miles a year.

I've calculated the costs of continuing to run this current car as:

Depreciation (forecast current value of £11,000 dropping to £5,000 over next 5 years): £1200 per annum
Insurance: £500 per annum
MOT / Service / tyres: £750 per annum
Road Tax: £195
Loss of interest (what I would earn on interest if I sold the car and had the money sitting in bank / investments earning 5%): £550 per annum

Total costs:£3195 per annum / £266.25 per month

My company offers a EV salary sacrifice scheme offering pre-loved cars which are all bundled up with road tax, insurance, servicing etc all included.

The best deals currently are, after the salary sacrifice benefits on tax and NI have been taken into account:
Nissan Ariya (50,000 miles, 22 plate) - £372 a month  
Volkswaged ID.5 (49,000 miles, 22 plate) - £402 a month
Tesla Model Y (55,000 miles, 22 plate) - £428 a month

On all of these cases I'll be between £110 a month and £160 a month worse off - albeit I'll be driving a newer car and will almost certainly make some fuel savings as well.

Am I missing something, why would I make the switch???

Income tax benefit in kind charge?

That's included in the monthly price (at least it is for mine)

How do they know what rate of tax to charge?

My employer's scheme has the option for you to tell it your taxable salary and the calculator takes that into account.

rsvtoddy

What about the impact on your pension of salary sacrifice?

chile_paul2

Woodstok2000 said:

sheramber said:

chile_paul2 said:

So, would be grateful if you fine folks could help me out with my thinking regarding potentially signing up to my companys salary sacrifice EV scheme.

My current position is I own a 2017 plate VW Passat with 58,000 miles on the clock - don't drive that far any more, between 5,000-7,000 miles a year.

I've calculated the costs of continuing to run this current car as:

Depreciation (forecast current value of £11,000 dropping to £5,000 over next 5 years): £1200 per annum
Insurance: £500 per annum
MOT / Service / tyres: £750 per annum
Road Tax: £195
Loss of interest (what I would earn on interest if I sold the car and had the money sitting in bank / investments earning 5%): £550 per annum

Total costs:£3195 per annum / £266.25 per month

My company offers a EV salary sacrifice scheme offering pre-loved cars which are all bundled up with road tax, insurance, servicing etc all included.

The best deals currently are, after the salary sacrifice benefits on tax and NI have been taken into account:
Nissan Ariya (50,000 miles, 22 plate) - £372 a month  
Volkswaged ID.5 (49,000 miles, 22 plate) - £402 a month
Tesla Model Y (55,000 miles, 22 plate) - £428 a month

On all of these cases I'll be between £110 a month and £160 a month worse off - albeit I'll be driving a newer car and will almost certainly make some fuel savings as well.

Am I missing something, why would I make the switch???

Income tax benefit in kind charge?

That's included in the monthly price (at least it is for mine)

Yes, BIK is included in the breakdown of the quote provided to arrive at the monthly charges that I listed - so it's all been factored in (including the increases in BIK that are due over the next few years)

Bigphil1474

OP, check out the pension hit. I was seriously considering an NHS Fleet car which would have cost me about £20 a month compared to current costs, but the pension hit was too big.