[sahajesh]

Hi,

Looking at getting a 330d Saloon (sDrive) - I have the following choices:

1) BMW PCP (using current car as deposit, say £4k) - a dealer has told me not to put full value of car as deposit as it makes monthly payments lower now, but when I come to swap, I won't have the same equity so either have to pay more per month or put a deposit in to make up the difference.

2) Standard lease through any of the myriad companies out there.

3) Salary sacrifice lease (via Lex) - this has the benefit of no deposit (which is no real benefit as I can put money in), however the monthly payment comes from gross salary so pay less tax and the payment includes:

Car (obviously!)
Insurance
All servicing, including brakes, tyres, exhaust - basically anything that needs the dealer to do it and isn't self-inflicted
Full RAC breakdown cover
European cover

I guess if anything goes wrong with the car, I have the backing of Lex to push the dealer/BMW to fix (hopefully?)

In short, it's a company car but without the contribution in terms of salary and includes a BIK tax payment.

At the end of the Lex lease, you can buy the car, however the price will be determined at the time of enquiry, so no GFV unlike PCP.

Mileage will be 12k pa over a 3 year term - the contract length of the Lex lease cannot be changed.

Spec I am looking at is:

* 330d Saloon M Sport
* Professional Navigation/Media
* Enhanced bluetooth telephone functionality with USB audio interface + voice control
* Internet access
* Lane change warning system with blind spot check
* Speed limit display
* Variable sport steering
* Electric heated, folding and auto dimming door mirrors with memory
* Front sliding armrest
* Heated front seats
* Heated steering wheel
* Advanced parking pack
* Comfort pack
* Driving assistant pack
* Visibility pack
* Adaptive M Sports suspension

So, my questions are:

1) Is the salary sacrifice scheme worth it? On the face of it, yes, as I pay less tax.

2) Are there any obvious must-have options I have missed and likewise, anything that is a waste of money? Some things can be added via coding perhaps so either not worth paying for from BMW I guess?

Not looking to order till Jan so no rush to decide.

Thanks,

Saj.

[jimboss]

I am on a salary sacrifice scheme and you quite right on the tax benefits. We can have any car we want as long as its below 160gms Co2…anyway I went for a 320d M Sport Touring that with goodies pumped the P11d to near £39k. With my salary sacrifice scheme in place the car costs me £443/month*

*comparing net salary including car allowance (when I was taking just the cash) against net salary with salary sacrifice scheme (once I received the car)

This is on a 3 year lease with 12k miles P/A and no deposit. Includes all insurances, servicing, breakdown cover (including Europe), tax and consumables…all I need to do is add fuel

The scheme made sense for me, it also gave me piece of mind and I didn’t have a deposit to put down either. If I tried to replicate the car on the BMW configurator now and put in zero deposit and 12k P/A I could not get close to the above figure and that’s excluding maintenance, insurances etc, so I think I got a good deal by using the scheme and I’ll think I’ll use it again rather than private PCP in the future unless my circumstances change.

As for your potential car…. very nice…specification is a personal thing…. but I would:

- Remove all driving aids ie speed limit display and land change
- Remove parking pack – I can cope just fine using front and rear PDC’s and I don’t consider myself a parking expert
- Remove heated steering wheel
- Remove Internet – I have it and never use it
- Remove Folding mirrors
- Remove Adaptive Suspension – Suspension tastes very subjective. I prefer the passive set up. Try both out if you can.

Add:
- M Sport Plus pack

[sahajesh]

Hi,

Thanks for the info - the salary sacrifice looked like a complete no-brainer but wanted to check first, in case I had missed a trick.

Some of the options I either have on current car (folding mirrors) and don't less than what I have or are a nice/must (heated steering wheel!)

Is PDC (front and rear) standard, if so I have that on current Peugeot and would be happy with just that.

Adaptive is something I prefer, so would keep that (subjective as you say).

Useful info though and I will prob remove parking pack if PDC front and rear is standard - I like the idea of speed limit display (as a toy) but it depends on my monthly cost!

Thanks for the feedback.

Saj

[jimboss]

No problem. PDC front and rear is standard on six cylinder models

[F30_msport]

Good advice Jimboss. I am thinking leasing a car is the way to go.

You know exactly how much the car is going to cost you over a period of time and don't have to worry about depreciation and negative equity often a problem with PCP's.

Apparently leasing is all the rage in Germany with very few people actually owning their own cars.

[carzaddict]

salary sacrifice lease....this is an interesting concept. I know you guys get raped with taxes, so you're given "company cars" rather than salary increases.

we dont have that here in the states, i wonder how well it would do if it was offered. I am assuming its a pre-tax expense?

[sahajesh]

Far from it (in my case at least) - it's a tax friendly way of leasing a car, that also doesn't have high emissions. No payrise for me, just a perk of my employer using a particular lease company and the lease company offers this deal.

Pre-tax yes.

[PrinceBarin]

Salary sacrifice is a fairly common concept internationally - the reason it works is not usually for tax reasons - in most cases the non-cash benefit is valued for tax purposes on a cost basis so your tax cost ends up being the same.

In the UK, company cars are valued for tax purposes as a % of list price. The % used is based on CO2 emissions. In short, lower emissions vehicles are taxed at a lower rate. So, whilst low emission vehicles generally yield a lower tax cost, it is entirely possible for the taxable car benefit to exceed the cash you have 'sacrificed' in exchange for the car.

The benefit of salary sacrifice is usually a social security one (national insurance in the UK). That is because, in some countries (UK included), non-cash benefits do not attract an employee social security liability.

[PrinceBarin]

Regarding UK company car schemes, be sure that you have taken into account the tax cost related to the benefit-in-kind (BIK) value the car. I expect your provider will spell this out in your quote but it's worth checking as this is a substantial component of the overall cost.

It is also important to be aware that HMRC are lowering the CO2 thresholds annually at present meaning you'll see an increase in the BIK value year on year which in-turn increases your tax cost (this part may not be spelt out).

That said, the 3% diesel supplement falls away from 2015/16 so diesel car drivers should see a slight reduction in their BIK value relative to the prior-year.

Finally, be sure to get the car added to your tax code otherwise your PAYE deduction won't include the tax on your car.

[F30AM]

* 330d Saloon M Sport (with 18" Wheels)
* Professional Navigation/Media - KEEP
* Enhanced bluetooth telephone functionality with USB audio interface + voice control - KEEP
* Internet access - REMOVE
* Lane change warning system with blind spot check - REMOVE
* Speed limit display - REMOVE
* Variable sport steering - REMOVE
* Electric heated, folding and auto dimming door mirrors - KEEP
* Front sliding armrest - REMOVE
* Heated front seats - KEEP
* Heated steering wheel - REMOVE
* Advanced parking pack - REMOVE, JUST STAY WITH F & R PDC which is standard on M Sport Models
* Comfort pack - UP TO YOU.
* Driving assistant pack - REMOVE
* Visibility pack - KEEP
* Adaptive M Sports suspension - KEEP

ADD:
* Lumbar Support (Electric) for Front seats
* HK Sound System - A MUST
* Heated Rear seats?
* Individual Leather Seats?

[sahajesh]

The financial calculator shows year by year figures (but not the BIK percentage) - for one particular year, the tax burden is slightly higher and the net cost (for 12 months) is about £7 extra per month (so making a loss).

Will check when back home - also the cost for 2014/15 is higher than 2013/14, I guess due to BIK being higher. I won't get the car until after 5 April so I am looking at 2014 and onward costs.

Very complicated but ultimately I think, still better than PCP or a bog-standard lease.

[jimboss]

Originally Posted by PrinceBarin

Regarding UK company car schemes, be sure that you have taken into account the tax cost related to the benefit-in-kind (BIK) value the car. I expect your provider will spell this out in your quote but it's worth checking as this is a substantial component of the overall cost.

It is also important to be aware that HMRC are lowering the CO2 thresholds annually at present meaning you'll see an increase in the BIK value year on year which in-turn increases your tax cost (this part may not be spelt out).

That said, the 3% diesel supplement falls away from 2015/16 so diesel car drivers should see a slight reduction in their BIK value relative to the prior-year.

Finally, be sure to get the car added to your tax code otherwise your PAYE deduction won't include the tax on your car.

Agree, BIK plays a big part and should not be ignored when considering the company car option and was one of the reasons why i went for a 320d rather than the 330d. The car cost i posted earlier includes current BIK/tax deductions. I will however have a tax bill to pay as my company sat on my updated P11d form for a number of months rather than sending promtly to the Tax man!

That aside even when including the BIK it is still cheaper for me to opt into my company scheme (in my instance)

[sahajesh]

Jimboss,

Ouch!!

[PrinceBarin]

In my experience, the residual value and low BIK of the 320d make it, pound for pound, one of the best value company cars available. Same is true for pretty much any BMW vehicle with the N47 engine - frugal & fast too!

[sahajesh]

Hmmm, I love the 30d engine, but I could get more toys with the 20d :-)

I'll make some amendments as per above - it will lower the cost somewhat so hopefully the extra cost of 30d still fits.

[sahajesh]

Originally Posted by jimboss

That aside even when including the BIK it is still cheaper for me to opt into my company scheme (in my instance)

For me, there is a peace of mind (effectively an insurance) that I can rely on my employer's fleet team (Lex) to handle issues on my behalf - when I had a company car in the past, it was good to go to the dealer and say "fix this please" and if there were issues, our fleet team (which was in-house before being sold off to Lex) would assist with problems.

Saj

[VonRat]

Originally Posted by jimboss

I will however have a tax bill to pay as my company sat on my updated P11d form for a number of months rather than sending promtly to the Tax man!

Mine forgot altogether and only noticed when I changed cars. I had to pay 3 years worth of BIK

[teaston]

Originally Posted by F30AM

* 330d Saloon M Sport (with 18" Wheels)
* Professional Navigation/Media - KEEP
* Enhanced bluetooth telephone functionality with USB audio interface + voice control - KEEP
* Internet access - REMOVE
* Lane change warning system with blind spot check - REMOVE
* Speed limit display - REMOVE
* Variable sport steering - REMOVE
* Electric heated, folding and auto dimming door mirrors - KEEP
* Front sliding armrest - REMOVE
* Heated front seats - KEEP
* Heated steering wheel - REMOVE
* Advanced parking pack - REMOVE, JUST STAY WITH F & R PDC which is standard on M Sport Models
* Comfort pack - UP TO YOU.
* Driving assistant pack - REMOVE
* Visibility pack - KEEP
* Adaptive M Sports suspension - KEEP

ADD:
* Lumbar Support (Electric) for Front seats
* HK Sound System - A MUST
* Heated Rear seats?
* Individual Leather Seats?

I really agree with this, all those options are unnecessary and will add a fortune to the payments!

Also note that if you currently have Tomtom it is far more accurate than BMW nav, so maybe remove that too! Or just have business nav, £1000 less just to not have 3d buildings in cities and other unnecessary features. F30 Business nav is the same as E90 Professional nav i believe.

And folding mirrors aren't needed unless your often parking on narrow busy roads.

And lumbar support only if you suffer from lower back pain.

And only get vis pack if you actually use your high beams (not really needed with xenons) & you're always wishing that the headlights would point to the side when you turn a corner! Really!?

Instead of advanced bluetooth just get a 32gb usb drive for £15

And adaptive suspensive if you've driven one without and don't think it handles good enough. Unlikely unless you're a racing driver. Some say the non actually drives better on the road!

M Sport Plus Pack & Heated front seats = Done!

Oh and get the dealer to add M Performance Gloss black grill, mine did for an extra £2.70 a month!

I've ordered mine from Dick Lovett (insert pun here!) in Swindon. They did a cheaper lease deal than any lease company i could find on the web, with a 3+47 PCH lease & free delivery nationwide. Speak to Denise there and see what she can do for you.

I should get mine before xmas, can't wait!!

[PrinceBarin]

Completely agree with every one of F30AM's suggestions.

Except the sliding armrest - I love that!

Definitely add HK. Personally I'd add HUD too.

[sahajesh]

M Sport Plus = 19" wheels, look lovely but crap on Sheffield roads!

Where can I get a list of M Performance goodies?

All good info, will look tonight!

EDITED: Found the M Performance Grill

[sahajesh]

Will go with F30 AM suggestions.

Enhanced BT is a must to allow two phones to pair to the car and Bluetooth streaming of audio (managing music on an external HD is a pain and I want a car that makes things nicer!). Of course, the F30 alone does that but some options are a treat as well.

Coming from a nicely-specced Pug 308, which handles quite well (as strange as that sounds), I don't want the bigger car wallowy feel, hence M Adaptive but can be tempted to remove. No way standard F30 is worse handling than the Pug, I'd hope.

VSS has been taken off the options list. HK has been added, parking pack removed. As for the HUD, I have seen it and like a lot, jury is out....

[PrinceBarin]

Keep the adaptive M suspension for sure.