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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to be wary of leasing an electric car?

39 replies

TotHappy · 03/10/2019 09:51

Dh has a new employer who are launching a salary sacrifice scheme to enable employees to lease electric cars. You pay a set sum a month (how much depends on vehicle but DH is looking at around £330pm) and that includes use of vehicle, maintenance, insurance, tax, roadside cover, they will install a charging point at our home and if we need to go on a long journey where electric won't be feasible they will loan us a petrol car for the duration at no extra cost.

DH is very keen, I'm not set against it but I'm wary because
a) I've no experience of electric cars and don't know how suitable it will be for our needs (short commutes, one toddler, one on the way - 4-6 long distance trips per year)
b) I've also no experience of leasing and am worried that it will cost us more than we benefit - particularly because you have no asset at the end. I know a car is a depreciating asset anyway but I just feel nervous about not owning it outright. Also not sure of any tax implications.

Has anyone done this and what was your experience?

OP posts:
Original poster
TotHappy · 03/10/2019 12:43

Bumping for any lunchtime traffic

OP posts:
juggler82 · 03/10/2019 12:58

I’ve no experience of leasing but I love my electric car - great for a family of 4, short commutes and taking the kids to activities etc. I’ve never tried a long journey in it but it looks like you’ve got that covered with the access to a petrol car. Electric cars tend to be more expensive than a petrol equivalent but they are cheaper to run once you’ve got it.

Original poster
TotHappy · 03/10/2019 13:36

Thanks! How much do you reckon you would spend monthly in charge as opposed to petrol?

OP posts:
smeerf · 03/10/2019 13:51

Can't you chose a plug in hybrid? Mine has emissions of

juggler82 · 03/10/2019 13:52

There’s lots of variables but in general the extra electricity costs about a quarter of the amount I used to spend on petrol. That’s with home charging not public charge points. No vehicle emissions tax, insurance is slightly higher but it looks like you’ve got that included.

atomicnotsoblonde · 03/10/2019 13:52

Also looking at this and interested in responses. Thanks all Smile

smeerf · 03/10/2019 13:52

As for charging, one of my local Tesco's offers free charging while parking, so I charge there when doing my weekly shop (my home charger hasn't been installed yet).

ilovemydogandmrobama2 · 03/10/2019 13:55

A friend of mine has an electric car - 4 kids, dog and they regularly take longish trips. She says it takes a bit more planning but very doable once you get in the groove.

Is there a way you could try it out before committing? Our work offers them and the leasing company did free trials.

UnfamousPoster · 03/10/2019 13:55

I can't help on the leasing side, but I know what you mean. I've always bought my own cars, even if I needed the help of a loan to do so, but at least it was always mine. Lots of people do lease though, so if it was that bad a deal, they wouldn't I guess?

On a practical side, the petrol replacement car is helpful as long as it's practical - would they give you a big enough car to do a week's long holiday with children and all the packing, etc, that goes with it?

On a day to day basis I think they're great if your commute is short but pottering here there and everywhere even locally will probably be pretty draining. There is of course the extra electricity costs to pay, but that should be cheaper than petrol for the same amount of mileage.

I know someone that had an electric car and a 50 mile round trip to work. It was an early version of the electric cars though so it's range was limited and in winter he had to choose whether he'd make it home again without having to find somewhere to charge it, or if he wanted the heater on!

RB68 · 03/10/2019 13:55

we lease a hybrid privately and its great.

Seriously the range on them is so much better these days and more and more speedy charge points crop[ping up at service stations and if you are driving that long you need a 20 min break anyway. As for the car itself its an easier drive as its automatic for the most part, the drive really doesn't feel that different. 330 is a good price for what you have included ours privately for a Kia Niro Hybrid is just over 200 a month but we do tax (err there isn't any) insurance (50 a mth) and any maintenance and servicing (which is less on an electric anyway

RB68 · 03/10/2019 13:58

the advantage of the hybrid is that it charges itself, with that and petrol we are looking at around 510 miles per tank of petrol which usually comes in around 45 quid. Leccy is still currently less than petrol and I believe you can stick them on solars as well these days

Original poster
TotHappy · 03/10/2019 14:12

I would definitely prefer a hybrid to 'warm me up' to electric but according to DH none are available, it's electric only. The Kia e-Niro is one he's looking at. How's the boot space/head room? I drive a Citroen Nemo at the moment and hate a cramped car!
I will look into a free trial, would at least have to find one to test drive somewhere as I'd never go in blind...

Re tax, I'm a bit confused: does it still count as a Benefit in Kind if it's simply leased through salary sacrifice? I mean,it's not a company car, the company just facilitates the scheme...

If we have to pay slightly more tax there is no way this will work out cheaper for us than continuing to run a petrol. DH insisted it would but I know the real motivation for him is the eco argument and I don't disagree... But I don't want to be financially worse off for a car I don't like. Are electric cars all automatic? That'd be an adjustment too, I've never driven one.

And another worry with leasing... What if we dent it/the baby is sick in it/ toddler sprays sand and sea water all over it? Do you have to return them in pristine condition?

OP posts:
PettyContractor · 03/10/2019 14:25

If we have to pay slightly more tax there is no way this will work out cheaper for us than continuing to run a petrol.

There are recently announced tax rate reductions for electric cars that means you will pay less tax than you would have on the salary sacrificed. For many years it hasn't made financial sense for many people to have company cars, but the new BIK rates for electric cars change that.

PettyContractor · 03/10/2019 14:27

Re tax, I'm a bit confused: does it still count as a Benefit in Kind if it's simply leased through salary sacrifice? I mean,it's not a company car, the company just facilitates the scheme...

The company will be making lease payments in return for the reduction in salary. The company paying for it means it is a company car.

Original poster
TotHappy · 03/10/2019 14:36

Thank you, that's really helpful - so will DH have to fill in a tax return to pay the tax, or can the company do it through PAYE?

OP posts:
familycourtq · 03/10/2019 14:49

Thank you, that's really helpful - so will DH have to fill in a tax return to pay the tax, or can the company do it through PAYE?
The Company can tax through PAYE but it's their choice. If they choose not to the value will be reported to HMRC via a P11d after the end of each tax year and HMRC will recover any tax due.

One reason this is probably happening now is that from April 2020 the BIK on electric cars will be zero - with only small increases planned for the following 2 years.

Original poster
TotHappy · 03/10/2019 18:01

Oh - that's useful. Yes that probably I the reason then

OP posts:
familycourtq · 03/10/2019 18:09

And another worry with leasing... What if we dent it/the baby is sick in it/ toddler sprays sand and sea water all over it? Do you have to return them in pristine condition?
Yes you are supposed to return in good order but reputable providers will allow a certain amount of wear and tear.

MadameJosephine · 03/10/2019 18:14

I lease a BMW i3 through work on a salary sacrifice scheme. At the moment, once tax and NI/ company car tax is taken into account it costs me approx £325 a month but that includes servicing, tyres, insurance for up to 5 drivers and breakdown cover. I’ve just received an email from the lease company to inform me that once the tax changes come into force in 2020 my company car tax liability with be zero so it will reduce to approximately £225 a month. I charge it at work so don’t pay for electricity

picklemepopcorn · 03/10/2019 18:38

Can't tell you anything about leasing.

I have a plug in Hybrid.

From one month to the next it runs on EV, 20-30 miles, depending on the weather.

About once a month I go further afield, and run it on petrol- but it's very efficient, about 43 to the gallon if I haven't charged at all (on holiday).

A charge costs about 80p at home, about £1.50 out and about.

I love it!

OldEvilOwl · 03/10/2019 18:42

I like the idea in theory but £330/month sounds too much!

Disfordarkchocolate · 03/10/2019 18:49

We've just applied for one for next year. My husband has done lots of calculations on how much we will save (£150-£200 per month). It's going to be very odd as I've never driven an automatic car though.

The biggest issue we have had with lease cars through work is worrying far more about minor dings and scratches. However, the rest has been great. Repairs are done quickly, tyres are top quality and it definitely saves us money on maintenance. If this is your only car someday you will end up with no no claims bonus.

gabsdot45 · 03/10/2019 19:22

I've had an electric car for 6 years. I love it. I love how cheap it is to run. We've done a few long trips but mainly it's used for local driving.
Mine doesn't have a great range but the new models have up to 200km range which is brilliant.
I'm not sure about the UK but here in Ireland electric cars are exempt from BIK.
I can't help you with the leasing questions though.

Original poster
TotHappy · 05/10/2019 17:28

Oops just come back and seen more replies. Many thanks everyone. I think my next step is to go through the paperwork with a fine tooth comb and see just how much we'd be saving - looking at these numbers I think £330 might be too much too. And DH will have to stop using the car as a litter bin.

OP posts:
muddledmidget · 05/10/2019 17:33

The Kia Nero is brilliant fun to drive, we test drove the electric one the other day, amazing power uphill, seemed like a decent sized boot, and a range of 280 miles from a full charge. We would have bought one, apart from the fact that there aren't any to buy/lease from Kia. They have a years lead time on them, and the dealer we went to has a waiting list to go onto the waiting list.