[alt227]

But how long until those children are no longer in nursery and you are not subsedised for it? In ~2 years you will no longer have this help, you will be paying through the nose for the outstanding amount on your new car, and your take home will be significantly less each month.

[physicsguy]

Yeah, but you're still taxed at 72% between £100 and £125k if you have a student loan (as most people in that age bracket will be), so even in that case the hit to your take home isn't that much.

[mytailorisrich]

There is no need to go that high in salary (a lucky very small minority). The higher income tax band (40%) kicks in at 50k. Salary sacrifice schemes offer huge savings to many people.

[KaiserPro]

true it does kick in at 50k but only for stuff over 50k. so its not a cliff like 100k or if you're at the other end on universal credit.

[mytailorisrich]

What I mean is that if salary sacrifice schemes on EV were only used, and very good deals, for people over 100k then it would be extremely niche as we're talking about the top 4% of earners whereas about 16% are higher band taxpayers...

[physicsguy]

People on higher salaries are disproportionately likely to be the ones doing it though - much much more likely to work for companies that implement the schemes for a start.

[mytailorisrich]

Yes, "higher salaries" as in higher tax band (median salary is 39k, higher tax band starts at 50k), which impacts 16% of people. That's why it has an notable impact on sales and also on the used cars market (salary sacrifice schemes are usually PCP/leasing over 3-4 years).

Perhaps it is the "London bubble" on HN as I feel that no-one is registering that 100k+ is a really, really small minority...

[KaiserPro]

according to the IFS 100k+ is top 10% earner in the UK. Which does feel a bit bubbly to me

[physicsguy]

I'm not based in London.

[vkou]

Yeah, but you'll have a new car.

Obviously if you don't need a new car, it's a really bad financial decision to buy one.

And even if you do, it might be a bad financial decision to buy one.

[alistairSH]

Obviously if you don't need a new car, it's a really bad financial decision to buy one.

It's almost always a bad financial decision to buy a new car. The first-year depreciation is unreal.

We just bought a 1 year old Audi Q5 in the US for ~30% discount over new. And with the Audi CPO program, the warranty is just as long as a new model.

[traceroute66]

> Obviously if you don't need a new car, it's a really bad financial decision to buy one.

I dunno ....

At least two EV manufacturers offer a 7 year warranty on new cars on all parts INCLUDING the battery.

[vkou]

Replacing whatever is broken in your 10-year old car will on the net cost less than the amortized cost of buying a new one.

[physicsguy]

I'm no proponent of PCP or leasing but you have to admit there is a hassle factor invovled once they hit a certain age + mileage.