AIBU to be wary of leasing an electric car?

[TotHappy]

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?

Hybrids are way more expensive in terms of tax under BIK rules than an electric now. Your deal sounds like a very good one, I'm about to lease an e-golf. I have a BMW phev (hybrid) at the moment but I can't get a new lease at the same rate as my old one under new rules so moving to entirely electric. E-golf is very nippy

The reduction in BIK from April makes it very attractive. I’ve got a Tesla model 3 in order. It’s due to cost me £260 a month inclusive of insurance, tax, servicing, tyres etc. No brainer really.

So good to hear from those of you with good experiences. I'll research the detail thoroughly this weekend but it sounds, muddledmidget like we need to get a move on if we want the Nero!

I’ve read this with interest. We’re looking to change our car - an old Volvo - and replace it with something newer. (It’s weird to me, I normally run a car until it breaks down and can’t be fixed but my boyfriend wants to buy a new one!) I’d really love to replace it with an electric or a hybrid but don’t know where to start. Are they super expensive? Can you even buy them second hand? I’d love some advice from anyone who has an electric or hybrid about models that are good family cars (boot room etc.) and also not too tiny - my boyfriend is 6’4 and needs a bit more room to be comfy.

Leasing seems very expensive to me £300+ a month? My car costs £42 in insurance and £17 in road tax, just had it serviced and MOT £220, it cost me less than £6k had 20k on the clock and is not yet five years old. I get around 450-475 miles per tank which is £60-£65 , but it's a bigger car, my old car cost £50 to fill up and I'd get the best part of 500 miles for that. I did look into a company car before, ours are optional, and the money just didn't add up unless you're bothered about driving a brand new car every couple of years. I'd rather go on holiday more.

’d really love to replace it with an electric or a hybrid but don’t know where to start. Are they super expensive? Can you even buy them second hand?
Electric only start about 6k for Nissan Leaf - the oldest version with the smallest range.
Hybrids have been around for longer so a Toyota Prius or Honda hybrid can be had for 3K (old with high miles)
Like most stuff - it depends what you want and how much of a chance you want to take on an older one.

LionelRitchie you may be right, and I have never been fussed about having new cars. Our insurance is £24 a month, we usually spend £150 on petrol monthly. Then tax and breakdown cover £70 per year, tyres 200, service & MOT £200, repairs... Anyone's guess. The cars nine years old now and getting expensive. That and depreciation is why dh thinks we won't lose money by leasing. Personally I think it probably will work out slightly more expensive but you could argue that's worth it for the positive environmental input.

Has he considered any private pension implications of salary sacrifice, there may be an impact?

Also, I was offered a salary sacrifice car through work, but a private lease worked out significantly cheaper once I'd done the sums.

One final thing to consider, what happens if he leaves his job? You need to look into that very carefully.

Oh bloody hell, what potential implications for pensions? He has definitely not mentioned that so probably hasn't thought.

What happens if he leaves the job is something I'm going to be looking for in the small print today

We had a Nissan leaf for 2 years on a lease and liked it so much that we got another for 2 years. We only got a different car after that because our family grew and we needed a bigger car. We used to lease them for 200 a month, we had to sort out own insurance etc out though. We were able to make a decent journey just by planning where the charge points were, however the models that we had only had 100 mile range and I believe they are far more now. As others have said they do need charging more in winter, I think the battery has to work harder in colder weather plus you will be using the heater etc. I had a tekna model which was top spec and it was lovely in every way, so simple to drive as well, really smooth and fantastic acceleration when needed! If they did a family bus I would have another in a heartbeat! As far as wear and tear goes etc, with our lease cars, they have had fair wear and tear as we have little kids so they can get grubby. We always make sure we give them a good clean before they are collected and we've never been charged anything extra. It's usually Manheim that comes to get them I think and they spend 20 to 30 mins going over the car doing a report and then come and explain any findings. One of ours had a dent in drivers door but as our mileage was less than the agreed allowance they didn't charge us anything, so quite fair.

You could pay less into your pension depending on how the system works.

Perhaps have a read of this: www.google.com/amp/s/www.moneyadviceservice.org.uk/en/articles/salary-sacrifice-schemes/amp

It isn't all as straightforward as it might seem at first, there can be an impact on a number of things that he might not have considered. The issue of what happens if he leaves is really important to research. And please do some cost comparisons with a private lease, as I said earlier, for me it was significantly cheaper (leasing not PCP).

Re pensions, it's worth checking, depending on what kind of scheme he is in. The rules all changed a few years ago I think. Reducing my gross salary would not have impacted on my pension, but it would have done on colleagues in a newer scheme. Worth finding out for peace of mind (although as I said, the rules may be different now anyway).

Thank you all so much, will be looking into all of that...
Just reversed into another car in a shop car park so feel like cars are not my friends today!

I have a Nissan Leaf with a fast charger outside my home - I love it! I have sensitive ears due to a hearing impairment and it is so quiet. We will change to a Tesla or Golf next year.

We drive some long distances so have a camper van for that, but the range on the Tesla is longer, so might be able to use that for longer distances too.

Charging is not a problem, but you can do too many charges on a long journey otherwise the battery gets too hot (or something... I switch off when my husband explains).

Electricity is a lot cheaper than petrol and there is no more queuing at the petrol station.