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Martin

Lease Deals

I've just seen the latest employee lease deals on offer.  I don't know the market rates, but they appear to be pretty good.  
Some examples include (all inc VAT, RFL and metallic paint)

Fiat 500 1.2 Lounge - £105 a month
£1260 deposit, 9k miles a year / 36 months

Skoda Yeti 2.0 SE-L Outdoor - £155 a month
£929 deposit, 10k miles a year / 24 months
(£180 a month over 3 or 4 years with £1080 deposit)

Grand Scenic 1.9dci Dynamique Nav - £218 a month
£1310 deposit / 10k miles a year / 48 months
(£235 a month over 36 months)

E220 AMG Night Edition Auto - £328 a month
£1966 deposit, 10k miles a yeat / 36 months
Nice Guy Eddie

Good deals indeed.

I was looking at Teslas Website this morning and I see they have a salary sacrifice scheme for buying cars. Anyone have an idea how this works.
JohnC

I got an email through from clvr.org.uk this morning and the E Class was £287/mth and about £1720 deposit (both incl VAT).

They had a Seat Ibiza at £69/mth plus VAT, the Leon with Tech pack at £119 + VAT and an A3 from £139/mth + VAT

Some real bargains for less than the cost of the VAT on a new car, on some of them.
Martin

It's something that was discussed during the consultation on the new company car scheme here, but was rejected.   Your employer has to offer it, I think it was rejected because of the complications if someone leaves, but I'm not 100% sure.

Some info....

How salary sacrifice works

Many organisations now offer salary sacrifice schemes.

The idea behind this is quite simple. You give up part of your salary and, in return, your employer gives you a non-cash benefit, such as childcare vouchers, or increased pension contributions.

Once you accept a salary sacrifice, your overall pay is lower, so you pay less tax and National Insurance.

In addition, your employer will not have to pay their Employers’ National Insurance contributions on the part you sacrifice.

Some employers pass on some or all of these savings to you.

Things to consider before taking a salary sacrifice

Sacrificing part of your salary means you earn less. This might affect maternity pay or mortgage applications.
Lower earnings may also affect your State Pension or contribution-based state benefits such as Jobseeker’s Allowance and Employment and Support Allowance. However, you may be able to claim more tax credits.
Because your salary is lower as a result of salary sacrifice, any life cover through a scheme at work could be less if it’s based on your lower salary. It’s worth checking – some employers do provide life cover at your original salary so you don’t lose out.

Salary sacrifice schemes only work for you and your employer if the benefits involved are tax-free. These include:

Childcare vouchers
Additional employer pension contributions
Cycle to work schemes
Company cars
Work-related training
Car parking near your workplace
Martin

JohnC wrote:
I got an email through from clvr.org.uk this morning and the E Class was £287/mth and about £1720 deposit (both incl VAT).

They had a Seat Ibiza at £69/mth plus VAT, the Leon with Tech pack at £119 + VAT and an A3 from £139/mth + VAT

Some real bargains for less than the cost of the VAT on a new car, on some of them.


All a strong argument for buying new.  I've just had a quick look and the E220 is the SE at that price, the AMG Night (whatever that means?!) is about the same price, but 2 years not 3.  The cost is a fair bit higher for personal contract hire too, the difference is not just the VAT (£366 a month for the AMG Night)
gonnabuildabuggy

do you mean buying new or leasing?

I would have thought leasing would be a far better bet at those prices?
Martin

gonnabuildabuggy wrote:
do you mean buying new or leasing?

I would have thought leasing would be a far better bet at those prices?


Sorry, yes, I meant leasing a new car rather than buying used.
Frank Bullitt

To add to Martin's post, if you salary sacrifice a car it is considered a BIK and you pay company car tax on it - we have it as an option and you end up paying an amount similar to a high street PCP without footing up the deposit. People leaving isn't an issue as there is a surrender figure which you can make the employee liable for or they can keep the car but not get the salary sacrifice, ours gets confusing if somebody is on unpaid leave on some way (maternity leave once statutory has run out, for example) as they don't have a salary to sacrifice!

One bonus is that you don't have any insurance restrictions, so a colleague has a C1 which costs him something like £120pcm but his 17 year old is insured to drive it which makes it 50% cheaper than insuring a 20 year old Micra...!
Racing Teatray

Re: Lease Deals

Martin wrote:
I've just seen the latest employee lease deals on offer.  I don't know the market rates, but they appear to be pretty good.  
Some examples include (all inc VAT, RFL and metallic paint)

Fiat 500 1.2 Lounge - £105 a month
£1260 deposit, 9k miles a year / 36 months


Not sure that Fiat lease deal is overly amazing for a business user deal.

My wife's Twinair Lounge (which retails at £1300 more than a 1.2 Lounge) costs us £90pcm with £3k down over 36 months.
Martin

I did say pretty good, not amazing.  

Sounds like you have a good deal.  It's £1,200 more over the 3 years, so assuming the twinair has a better residual value (retains a decent proportion of the £1,300 extra), there probably isn't a great deal in it.


It's not a business user deal.  The offers are from a lease company who give us decent private lease deals because we promote them internally.  We don't use them for company cars either, as they are purchased outright.
Clunes

I keep seeing what look like fantastic deals on Skodas from Simpsons (?) Skoda. Keep popping up on my Facebook and Twitter and the deals look very tempting over a couple of years.
Racing Teatray

Martin wrote:
I did say pretty good, not amazing.  

Sounds like you have a good deal.  It's £1,200 more over the 3 years, so assuming the twinair has a better residual value (retains a decent proportion of the £1,300 extra), there probably isn't a great deal in it.


It's not a business user deal.  The offers are from a lease company who give us decent private lease deals because we promote them internally.  We don't use them for company cars either, as they are purchased outright.


Ah. I assumed they were business user. We got a 15% discount on an "in stock" (but not pre-reg) car from the dealership which helped considerably.
simonp

I'd pay £105 a month to not have a Fiat 500!

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