MK5 Golf GTI
General => Random Chat => Topic started by: dp2 on July 05, 2011, 11:22:08 pm
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My works have introduced a car salary sacrifice scheme where I can lease a low emission car (under 120g/km CO2) over 3 years. The price includes insurance, servicing, tyres, road tax and breakdown cover. The example cost they give for a BMW 1 Series Diesel Hatchback 118d ES 3dr is £238.75 a month, which seems pretty good to me compared with other leasing schemes. They have Golf's and Scirocco's on there too but I haven't seen any prices for those yet.
I must say i'm rather tempted by this as it will reduce my running costs by a fair bit and i'm also not sure if i'll be able to afford to keep the GTI for another year. Even though i've not had the that car long and I love it too death, if I were to sell it, I worked out it might almost cover the cost of leasing the car over 3 years, there or thereabouts and i'd not having to pay for insurance, servicing, road tax, tyres and breakdown cover. The fuel costs would also be cheaper.
Any thoughts on this?
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It looks like you'll be financially better off with the lease car.
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Salary sacrifice is similar to how bike to work schemes work, so they are tax efficient for the employee and employer. If the cars are what you would want and you do sufficient mileage then it would make a good deal of sense. But these decisions arent all made with the head, if you can fall in love with one of the new cars (I could with the right Rocco) then it could be a great decision.
Just remember your employer is saving money by doing salary sacrifice so they will be encouraging.
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Does a salary sacrifice scheme exempt you from company car tax or do you still have to pay?
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Dependant on car, you more than likely will still pay company car tax.
When i moved jobs 12mths ago, the package was offered as a tax free company car, thought great but not as good as it sounded.
I had two options one choose a company car or take an allowance.
By taking the car option i forgo the allowance of £250p/m and this is used to pay for the car, certain cars there were no further monies to pay, ie basic spec budget brand cars, some even gave you some money back, as they did not use the full allowance.
Approx figures under the lex autolease scheme we use at work
Octavia VRS pd = £60 p/m extra
Golf GTD = £90 p/m extra
A3 sportback s-line 170 s-tronic = £110 p/m extra
Golf GTI DSG = £195 p/m extra
I chose the car allowance still, first time round, the extra money came in handy to pay for the Kitchen :signLOL:. Choosing a compnay car is a 3 year commitment, if iwas to leave there were charges involved due to my package. The way i looked at it was, end of 3 years i get to buy the car at a discount rate prior to auction, if i chose not to i still had a car to buy. By taking my allowance i can change car as and when, use the money to pay for the car at the end of which i would own outright. It gave me a little more flexibility that i wanted, also you can mod your own car, but cant really change the company car, even down to changing for winter tyres they would not let me do.
Any additional payments under my scheme came off my net pay, not gross under a salary sacrifice scheme.
Each to there own, look at the numbers see if it works, for example..
Golf GTI ED30 may cost £250 p/m finance payment after down payment, + £115 p/m (tax insurance, service costs), after 3 years the car is paid for and can do as you want, even sell after 12-18mths.
Golf GTI DSG (maybe new) however, £190 p/m extra off net pay over 3 year agreement, end of period but car or get another etc... Car in 3 years maybe worth £14-15k, still have this to find.
Figures worked better for me, with allowance..
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Still have fuel to pay either option although i do get business miles back at 13p per mile then the extra upto 40p through my tax return. Make back about £22 per week in expenses, as i do little mileage at present.
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Still haven't got my head around all the tax stuff yet. I'd also get paid £70 gross per month from work via this Green Autos Via Salary Sacrifice (GASS) Scheme towards the car.
Here are some other cars i've got prices for. This doesn't include the £70 per month gross payment.
VOLKSWAGEN SCIROCCO DIESEL COUPE 2.0 TDi BlueMotion Tech 3dr £390.64
VOLKSWAGEN GOLF DIESEL HATCHBACK 2.0 TDi 140 BlueMotion Tech Match 5dr £377.10
AUDI A1 HATCHBACK 1.2 TFSI S Line 3dr £291.87
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Are you limited to how many miles you do?
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Are you limited to how many miles you do?
Yes, the quotes above assume you do 10,000 miles a year. If you go over I think there is a charge per mile.
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My scheme didnt have a mileage limit, infact if you did under 10k a year they rather you take the allowance.