salary sacrifice car

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    Hi all,


    Just wondered if anyone could advise me on salary sacrifice. We could do with a new car and someone suggested instead of spending all that cash why don't we salary sacrifice.


    Seemed like a great idea untill someone else told me wasn't all it was cracked up to be, unless you did so many k's you would have to pay money back etc etc. Don't really know whether it would be worth our while and the company just want you to sign up so aren't that helpful.


    Also how does it work do you pay money for the car like a loan then it's yours at the end or with the offer of buying it, are the car's new and do you have to buy them at the end or can you stop the sacrifice and buy your own car.


    Sorry about all the questions would just like to know the best way to save our money.:arghh:



    Jo x


    Has anyone done this and found they are better/worse off

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    Guest Guest75

    My good friend Greg virtually controls Salary sacrifice in most car dealerships.

    The Dealers hate SS as it is complicated.

    Greg sees it differently.


    It can be a great and tax efficient way to buy vehicles.


    A lot of folk in the Armed Forces do it here.


    I'll have a word with him and see if he can contact you.


    Is this via your work??

    Guessing it has full charity status??

    Might work be doing this for you?

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    We recently had a presentation at work on SS, here the few points I picked up:


    You can do second hand cars, but I think they have to be less than 5yrs old at the end of the SS contract.


    How much money you save/pay is related to kms, but can't remember the exact details.


    At the end of the SS, you have the choice of paying off the remainder of the value of the car to own it outright, or just giving the car back (can't remember if there were costs associated with this).


    The more you're earning, the more you save, as the money is coming out of a higher tax bracket, so it depends how much you earn whether this will actually be worth it.


    Probably best to get some professional advice to help you do the numbers.

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    Just done this myself so may be of some use :)


    I think the amount you can have to spend depends on your salary, mileage and type of work (?).

    You go through a full calculation of what you think your entire costs of running the car will be over a year - inc rego / tyres / servicing, mileage (petrol use) etc...

    You can choose up to a 7 year plan - hence they do not want you to go for an old car, so if you go for a 3 year old you can only get finance for 4 years.


    They are touchy about migrants so you're ok if you have a PR and 6 months probation out of the way (or nice reference from your employer!).


    It has worked out for me as I travel daily from Seaford to Fullerton Rd so mileage soon clocks up! I'm very happy as I do not have to worry about the reliability of an old car and have nothing else to pay in regard to the car.

    I have it over 5 years, I can choose to extend the plan to 7, keep the car and pay off the remining amount or swap it for another or just get rid!. the payments are arranged so hopefully you have equity in the car at the end of the term and any money left over is yours :)


    I'm very happy though I had to rush it through without comparing to other options due to my old banger dying.


    Good luck :)

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    Be aware of FBT though. Just finished filling in all my forms for work. If you SS a car, the payments are taken from you salary BEFORE tax, thus reducing the amount of tax you are liable to in the tax year, however, if you do not do the stated km's, you are liable for fringe benefits tax. This taxation rate is far greater than your normal income tax rate, so you will end up paying more.

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    Guest Lisado

    I have my car through salary sacrifice at work and its brilliant. The car dealership I went to where fantastic and made it really easy for us.


    The company I deal with via work are brilliant. I have my Rego, petrol cards, service, warranty everything covered and save alot of money.


    Its a brilliant way to get a car when on temp visa as we couldnt get finance etc and didnt have the money to buy outright.

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