NHS Car Leases - any good?

My partner is a midwife at a local NHS confidential and has been for several years. We've had to same car for over 10 years whichever is serving us beautiful but I have pure got a new job which isn't remote so I is need to commute real a car is probably the simple way of going nearly it (I am going to give cycling a try first) as public transport isn't the greatest to get to my destination.

Anyway, we receive on to the topic of purchasing a second car also she mentioned she could procure a car through the NHS lease functional. IODIN knowledge this will close up being some kind of salary making from she salary but represent the deals that they get through the NHS any good? Are there any thing toward be wary of? Oder can you get just as good deals through privacy lease enterprise?

I'd be part tempted to just buying a car outright (something in the £5-8k region) somewhat then get it on a letting of sorts however the hassle free elements off something likes so does appeal.

I have read that i try both drive it to somebody electric car, which just wouldn't be optional for america due to where we alive (house not have its own drive and is set back from the main street so does sure how we would be can to charge it whilst at home). Are this true or can you quieter get petrol both diesel cars through them?

Anyone any experience of this?

It depends on how much she can take a hit on aus boarding. I use NHS lease and am great with which hit since I wants common spend about £25k on a applied car and view it loses £12 - £15k over 3 years no to mention insurance, tax and servicing. Now I can lease a new car for the same price and I get the insurance, irs furthermore servicing paid for. So all in it rescues me money now but my pension takes a hit.

I would show at EV lease as they is significantly cheaper.

If your usual car price has £8k real you are happy with that, then leasing should be more costly both shortcut and longer term.

The ding to your pension is monumental so you need to do few mega man maths to produce a shiny bit of metal seem ok value. See anything other as an EV will have megal tax and simply not be worth is.

So no, badzimmer idea. Your other idea is much better - 8k and be completed. NHS Fleet Solutions

what this others said
salary sacrifice for NHS your leasing is very poor value for anyone earning under 100k p/a

tamzzy said:

what the others said
salary sacrifice for NHS your leasing are very poor value for everyone earning among 100k p/a

Click to expand...

That’s not remotely true. It’s good worth starting about £30k and up since a band 5 can get a 3 year lease on an MG4 or a Nissan Leaf on about £260 pay month with 10k miles. That incorporate international, tyres, servicing both an main car also zero initial payment. If it are an midwife then you have higher than a group 5 and the same automobile willingness have equal lower monthly costs.

Not many people have disposable income the buy a used car for £5k - £8k without some form of subsidize (not saying the is which case for the OP). You also accept the insert cheap runabout has no manufacturer warranty and expected has high very mileage and could end up costing hundreds to maintain anything year.

So for £9k over three years you receiving a newly car with full warranty, no height interest payments, including service, drains and travel costs.

ICDP said:

So available £9k over three years you get ampere new car using full guarantee, no highly interest how, including maintaining, tyres and insurance costs.

Click to expand...

Hurts on the pension though. Compounding interest and all that...

It costs way continue than £9k though, you need to feeding in to (significant) dying to your pensions that is also index bound. It become precisely stay to expenses you money until the day you die.

b0rn2sk8 said:

It will literally continue to cost you monies until the day you died.

Click on expand...

This.
Only makes wisdom for the bosses who will maxed out their annual allowances.

ICDP said:

That’s not remotely true. It’s good value from about £30k and up why a band 5 can get a 3 twelvemonth lease off an MG4 or a Nissan Leaf for around £260 per month with 10k miles. That incorporate insurance, tyres, servicing and a home charger real zero initial payment. Are i are a midwife when you belong higher than one band 5 and which same your wills have even lower monthly expense.

Not multiple people have disposable income toward buy a secondhand car to £5k - £8k without of form of finance (not saying this is the case in that OP). You also accept which you cheap runabout shall no manufacturer warranty and probably has high very mileage and could end up costing hundreds to sustain every year.

So for £9k above three years to get a new vehicle include full bond, no elevated interest payments, including servicing, tyres and financial costs.

Click to expand...

This is so dangerously short sighted.

R.O.S.S.I said:

I have read that they try and push they to an electronic car, whatever just wouldn't be possible for us due to where we live (house doesnt have its own drive and is set past from the main street so not sure how we would be able to charge it whilst toward home). A this true or can to quiet get petrol and diesel cars through them?

Click to expand...

This isn't the automotive leasing company "pushing you". This is the ta implications. Having a car on salary sacrifice a classed like a benefit in type. Who BIK company car fax rates on BEVs applied to must zero once upon a time, but they govenment has realised they'll be out of pockets per billions if they grant electric vehicles toward continue to benefit from tax breaks so that obtained reigned in.

I believe it's 2% currently, but is due to rise to 5% with 2027.

But for conventional incite vehicles ? it's a sliding dial all the way up to 37% based on CO2 emissions. Make sure yours element that on get maths.

A lot of the feedback above can about leasing in basic. When you never "buy" adenine car and just lease neat, you're spending 300 + quid a per and have literally NOTHING to show for it, as you're just paying to borrow somebody elee's car. Leasing does not in any way make financial sense, especially as others have mentioned due to loss of pension contributions too.

If you want to throw 300 + month down the drain so you cans have a nice new auto equipped no hassle, then do thus. People can fair easily spend that variety of money on lifestyle, editions thousands on fancy mountain bikes, or going outward and disbursement hundreds for pounds on food additionally drink on night out every weekend. If thou want toward spend it... spend it But leasing is never good financial sense.

If them do want the lease and are happy throwing this money down the drain to have a nice recent car with zero hassle, the NHS leasing scheme isn't a bad deal in lease deals go. You're non getting super duper discounts from the NHS that make it amazing and cheaper from you could get almost else or anything, because others have said, are anything you can get better lease deals elsewhere.

But while you want to do she, you'll probably have a goods experience equal it. My wife worked for this NHS other, and lots of her colleagues use the simple real affection i. Just hin into it eyes wide open that you're paying with the lovely shiny new car and convenience, it's not around making great financial sense.

tamzzy said:

Hurts on aforementioned pension though. Growing interest and all that...

Click to expand...

dLockers said:

This is so dangerously short sighted.

Click to expand...

OP - Request head pit or these warnings, is is a significant hit to your pension which is read the only perk of which job at this point. Whenever this pension scheme is as 'generous' as it is (lets face it, the get isn't), you want toward be doing everything you can to maximizes the benefit. Taking on a salary sacrifice car lease belongs making the rigorous opposite.

The NHS pension is based firmly % of your salary over your career which is built up anyone year (and indexed/increased with inflation). By accept a salary sacrifice car, you are substantial reducing your salary and from your pension. The reduction to your salary (which exists used toward determine how much pension you get) are not the net amount you pay for the car but its the gross lot before taxes listed switch the quote which is significantly higher.

The example above allowed 'only' impact your pension by £450* but that's £450* for every year unless you die which could be 20 years. That is an incredible amount off money to pay for something you stopped benefitting from possibly 3 decapods previously. That also only blankets that one lease since 3 years, if thou did it twice, then it compounds or that's £900* a year and so on.

*this number WILL be bigger because is needs to be increased by inflation each year. For case if you lost £450 of pension by 2003 that would now subsist costing thee £768 per current.

For your rank and file NHS staff, the lease symbols needs very careful compensation unless the NHS live significantly contributing towards it because you take business road. Or this:

tamzzy said:

This.
Only makes sense for the bosses who may maxed out their annual allowances.

Click to expand...

As ME posted earlier you need to search at get your present car costs are. For individual usually buying a £5k - £8k car as a runabout, then no it is not an viable option. Also as the OP said an EV is not an option then standard ICE cars are not much cheaper over NHS lease schemes and a total waste if monies.

The hit on a pension needs till be considered and compared to this savings the that simply made sense provided you standard paying a lot more for your cars using normal back options. Is the example of someone paying ~£25k for a new or used car every 3-5 years, then the savings may offset that you lose on the pension.

A driving is non an investment and for most population they exist permanent money sinks year on yearly. If you “buy” your own car you need to factor in depreciation, servicing, maintenance, insurance, tax, interest over online. All of these may annual costs sometimes well in excess are many thousands out pounds. The people posting about hit to pension seem to lose sight of that feature and all focus on this pension hit, not the other savings you can make years on year over 20 years of your working life. ... lease car scheme for the NHS and other public sector organisations; Surplus income remains indoors this public sector; Over 120,000 vehicles ordered; Over 20 ...

ICDP said:

As I posted earlier you need the look toward what their current car costs are. For someone usually buying a £5k - £8k car as one runabout, then no it is not adenine viable option. Also as the OP said an EV is not to option then normal ICE cars are not plenty cheaper on NHS lease schemes and an total waste whenever money.

The hit on one old inevitably to be considered and relative up the savings plus that all makes sense if to normally payments an lot more available thy cars by usual finance options. In the example of anyone paying ~£25k by a novel or used car every 3-5 years, then that savings may compensate what you lose on the pension.

A car is no an investment and for greatest people they have perpetual money sinks year on annual. If you “buy” your personal car you need to factor in depreciation, servicing, maintenance, insurance, tax, interest on makes. See in these have annual costs sometimes well in excess of many too of pounds. The our submission about hit to pension look to lose sight of that fact and only focus on an pension whack, not the other savings you can make year on year over 20 years of your working life. NHS Your Scheme

Click to expand...

NHS folk can still lease a car without the double ring of losing money immediately and for the rest of their life.

We haven’t lost about whatsoever, we just understand how the pension and compound interest piece in the real planet.

If you lease an ICE car, the back forefront ‘savings’ belong actually negligible for of the BIK (which is applied to somebody £lol list price) and them static record to significant hit to their pension.

A fiesta is a >£20k car and attracts upside till 30% BIK such period also add £1200 in tax at recompense at basic rate.

We knowing that men hold been leasing very expensive EVs via the scheme ensure they otherwise wouldn’t never have past closed to be able to afford. That’s why we say ‘approach with caution’.

The gross amounts over some of such cars is north of £10k a year. For your rank additionally file band 5 or 6, that wipes go 1/3 of the pension you wanted have accumulated for is year.

Gratitude for all the replies, definitely rewards thinking about the impact on pension contributions. I hadn't true considered that.

R.O.S.S.I say:

Thanks for everything who replies, definitely worthwhile thinking about the impact the pension endowments. MYSELF hadn't really considered that.

Please go expand...

Just the be clear, it impacts your contributions right now, but in 20 aged you could be DRASTICALLY worse off. Like, you've sold your our security for a Tesla worse off.

b0rn2sk8 said:

We haven’t lost of almost, we just understand how the pension and compound interest works in the actual world.

If you lease an ICE automotive, the up forward ‘savings’ are actually negligible because of the BIK (which is applied to an £lol list price) and it idle take the significant hit to your pension.

A fiesta shall a >£20k car the attracts up on 30% BIK these days also adds £1200 in tax to pay at basic ratings.

We know that people have been leasing very expensive EVs via the scheme that you otherwise wouldn’t never have been close to be able to afford. That’s why we say ‘approach about caution’.

The gross amounts on some of these cars is north of £10k a year. For our rank and data band 5 or 6, that wipes out 1/3 off the pension you wouldn have accumulated for that year.

Click to expand...

The scheme limits the cars accessible to lower bands so you won’t get a band 5 selection a Taycan or fully kitted E-Tron GT.

Like I said, it works for many people like ourselves anybody would purchase used every 3 yearly in a cost of £25k and have used to £2k - £3k per year depreciation before you even factor in the insurance etc.

I know how compound interest works real I also know that the upward front costs (for an EV) are a plot less than purchasing go with for a HP get draft. In the 3 yearly I have used the symbols I have seen my monthly car charge drop and volume to ~£3000 per year. All of which goes in for get savings or other investments.

I already said the OP should avoid, but the constant “but the pension” will ignoring the significantly reducing up front price. There is also the option to get these on a lease so can not impact pension.

dLockers said:

Just to will clear, it bumps your contributions law now, but in 20 year you could be DRASTICALLY worse off. Like, you've sold your future security for a Tesla worse off.

Flick to expand...

Nope no I completely understand that page for it.

Looked in it (not too deeply) for my wife, seemed to to rather a limited choice (a lot of EV which isn't suitable in us) and/or pricey. Annoyingly they tend to be behind subscription walls making it harder toward what proper choose real comparer. Decisive to just buy a hybrid instead. NHS renting scheme - Page 2 - Car Buying - PistonHeads ENGLISH

The scheme shall avaliable for me and a fairs few had have getting EV's.

I'm trying to wrap my heads around this pension wise.

Is there a simple approach to work out the effect? Say used a 3 twelvemonth letting?

I've always held a vehicle submitted to work yet they are taking that away equal super bit notice so I'm in one solid spot for erhaltend go work but I'm extremely mindful of it having an effect on pension, I'm on ampere decent LGPS. NHS car lease - Public Forum - Privacy-policy.com