Car through Salary Sacrifice (Benefit in Kind). Can't get my head around it!

[Ra5pberryLemonade]

I worked out my current car costs
360 finance
60 on insurance
10 on Breakdown Cover
and 4 high quality tyres cost me £600 last year so considering a SS car, I'd budget around 480 a month.

I often think that so much money is wasted on car finance but equally due to commuting round trip of 300 miles each week, I need a reliable car.

Dream car is available on salary sacrifice for 600 a month. More than my budget. My current car does 51mpg which is great practically. Dream car slas hybrid ays combined is 200mpg - I don't understand how - it's only 50 miles Electric range.

My heart wants the dream car, Salary Sacrifice makes it much more achievable but unless I'm missing something, the extra 120 a month may be a stretch.

BUT

Am I missing something? My car sailed through its MOT last year, its due soon and it may not but I can't really say I've had maintenance costs yet apart from tyres.

I'd love to get the Dream car but trying to work out if viable. Also wary of having no asset after paying out 6k a year for 3-4 years.

Thought and advice?

Lease cars blow my mind but I work in mortgages and would say that on 90% of the applications I see there is at least one car on lease, often two
I feel like I'm pretty much in the minority though and vast majority of people I know with nice cars have them on lease
For me it would come down to income. I'd have to be earning a lot of money to spend that much on a car every month
Is the £600 after you have accounted for what you'll save by doing it via SS?
And the 50 mile range for electric..is this any benefit given the miles you do?

I would keep your car for now as it is running good and reliable (swapping cars is always a risk).

Put £150 away a month for a few years (the same number of years the dream car payment was over).

Then use what you have saved as a deposit if you can. Or if you can't then pay yourself back the £150 a month

How much do you earn? Surely that’s the deciding factor. I earn a good wage but no way would I spend £600 a month on a car - can’t see the point at all

Spending lots on a salad at sacrifice scheme may impact your pension. Check before committing.

Salary sacrifice 🤦‍♀️

That's a lot of money a month on a car that will never be yours.

I would keep the car you got, at least for a couple more years

Considering the factors mentioned, It's advisable to:

Evaluate Maintenance Costs: Assess potential maintenance costs for both your current car and the dream car.

Consider Resale Value: Explore the potential resale value or depreciation of both cars.

Examine Tax Benefits: Investigate if the salary sacrifice scheme offers any tax advantages.

Balance Financials and Satisfaction: Weigh the financial aspects against the personal satisfaction and joy derived from owning your dream car.

Should have mentioned, on the particular scheme I am on, the Salary Sacrifoce car includes car tax, Insurance, breakdown cover, repairs and courtesy car.

@Ra5pberryLemonade
As it is salary sacrifice of £600pm, it will reduce your gross pay by this amount per month. Therefore you will save the tax and NI that you would pay if you earned this amount.
Currently you pay for all of your motoring costs out of your net pay.
Therefore depending how much you earn, depends on how much tax and NI you will save.
As an example if you pay 40% tax and 2% NI, the cost of the car will only be £348 per month as this will be the difference in your net pay.
If you also pay your pension contributions through salary sacrifice, these will be unaffected.

I have a salary sacrifice - it's £300 pcm and includes insurance and all maintenance

Is the £600 gross or net? I have a salary sacrifice car which gross is £720...but net is £420. That's because I get taxed after the car payment has been deducted and as a higher rate tax payer it works out quite well. Includes tax, insurance, service etc