NHS car leasing scheme!!

[Kimbombim]

Ive had a look through other posts but cant find anything directly related to this.

My mum works for the nhs and has been offered to join a car leasing scheme.

At the moment she has her own car and claims 44p per mile for her work mileage.

We just need to get an idea of what the savings/costs are going to be involved.

Also is it a good idea or is she best staying as she is?

Any comments or links greatly appreciated

 

[smo]

More details of the scheme would be good.

From what I know of it, you lease a new car for a fairly competitive rate, this is made better begause it comes from gross salary not net.

You then still get mileage but at a much lower rate.

 

[SGPS]

No wonder the country is on it's ass. 44p a mile? That seems a lot

 

[elephantfrills]

we claimed 23p a mile!! No idea about the leasing scheme though sorry. I would be interested to learn more if you find any more information

 

[Arhob1]

I think the HMRC rates are 45p for first 10,000 miles, 25p thereafter before you attract tax on payments. i.e. the HMRC think this is a realistic cost per mile for business travel.

I claim that from my company via expenses and just looking at petrol then yes you make a "profit", but take in to account depreciation of large business mileages, insurance, tax, servicing, repairs, scrapes etc and it is overall about right imho.

 

[smo]

No wonder the country is on it's ass. 44p a mile? That seems a lot

Not that much really, when I left the private sector (water industry) our payments had topped the £1 a mile and were rising fast!

 

[RedEvo]

Not that much really, when I left the private sector (water industry) our payments had topped the £1 a mile and were rising fast!

That's a subsidised rate, HMRC have clear allowances for mileage. However, I agree, 45p a mile isn't excessive when the full running costs of a car are taken into consideration.

d

 

[smo]

That's a subsidised rate, HMRC have clear allowances for mileage. However, I agree, 45p a mile isn't excessive when the full running costs of a car are taken into consideration.

d

I know, we paid BIK on the ammount above 45p, but anyone saying that anything under 45p a mile is a lot clearly isnt looking at the bigger picture of running a car, its not just for fuel it covers servicing, depreciation, fuel, tax, insurance etc etc which for most people is at least 40p a mile!!

 

[smo]

Interestingly i've calcualted my actual cost per mile and its 20p.

Thread http://www.ukbusinessforums.co.uk/forums/showthread.php?p=1859009#post1859009 for those interested in participating.

 

[UKSBD]

Not that much really, when I left the private sector (water industry) our payments had topped the £1 a mile and were rising fast!

£1 a mile! I'd be tempted to set the car up on rollers

 

[UKSBD]

I know, we paid BIK on the ammount above 45p, but anyone saying that anything under 45p a mile is a lot clearly isnt looking at the bigger picture of running a car, its not just for fuel it covers servicing, depreciation, fuel, tax, insurance etc etc which for most people is at least 40p a mile!!

So they wouldn't have a car for personal use or getting to and from work if they didn't need it for work?

 

[smo]

Of course they would, but the "mileage" payment is meant to cover all the costs involved in every mile driven, which include all those things regardless of personal use.

 

[mit74]

my partner leases her car through the NHS and although we haven't done all the calculations we think it works out costing more. If you're buying a new car anyway and need to pay the interest on a loan then it's worth doing but other than that she does it simply out of convience (free servicing, maintenance etc) and because she likes choosing a new car every 3 years. The NHS pay half plus about 15p per mile (not sure the exact figure) and she pays for her personal mileage which depending on the car is around £80-120 a month. If the NHS pay all the costs then I would say it's definately worth it.
She says the 15p or whatever it is doesn't cover all the cost of petrol sometimes as they don't update it for years when there's a big increase in petrol costs. BUT the biggest factor and the main reason we think it costs more is your change in tax code. You will now own what's classed as a company car and will be taxed more. You will need to do the calculations on these to find out exactly how much better/worse off you'll be.

Also forgot to add the fines after the 3 years. Every person i've spoke to has had these ridiculous fines. She was charged nearly £200 for 'scratched' paintwork even though it was pretty much wear and tear on the rear and near the door handle. If we had leased a light coloured car then they wouldn't have even noticed but because it was black they said they would lose that much when selling it on which is nonsense.

 

[David Griffiths]

Interestingly i've calcualted my actual cost per mile and its 20p.

Thread http://www.ukbusinessforums.co.uk/forums/showthread.php?p=1859009#post1859009 for those interested in participating.

Where is the depreciation? That's often the biggest single cost of owning a car

 

[JosephHenree]

I would suggest your mother to sold your current car and then pay the sale proceeds as a down payment to your leasing company.

There will be 2 advantages of this:
1. You guyz will be having a new car
2. Secondly, the remaining amount for the payment of a new car will be divided into very petty installments.

Thanx

 

[smo]

I would suggest your mother to sold your current car and then pay the sale proceeds as a down payment to your leasing company.

There will be 2 advantages of this:
1. You guyz will be having a new car
2. Secondly, the remaining amount for the payment of a new car will be divided into very petty installments.

Thanx

You do realise that with a lease you are renting the vehicle, you dont own it, ever!

 

[mit74]

You do realise that with a lease you are renting the vehicle, you dont own it, ever!

he's a spammer i don't think he cares!

 

[jennifert1212]

I have just qualified and got a job as a Community nurse, meaning I need car which is going to be reliable.

I have looked at all my options. And realised that the NHS lease scheme is not in my favour. Due to the company car tax and the mileage rates of a company car at 15p per mile opposed to 48p per mile for using your personal car.

I am not in a financial position to buy one, so i have been looking at a personal contract hire. which when you add up your servicing, insurance and cost of hiring the car, it works out that it will pay for itself should you be doing alot of business miles.

Any further advice, I would be most grateful.

 

[smo]

I have just qualified and got a job as a Community nurse, meaning I need car which is going to be reliable.

I have looked at all my options. And realised that the NHS lease scheme is not in my favour. Due to the company car tax and the mileage rates of a company car at 15p per mile opposed to 48p per mile for using your personal car.

I am not in a financial position to buy one, so i have been looking at a personal contract hire. which when you add up your servicing, insurance and cost of hiring the car, it works out that it will pay for itself should you be doing alot of business miles.

Any further advice, I would be most grateful.

You will actually find the lease rates on the NHS schemes are much lower than public rates from a dealership, also bear in mind they come from your net salary, that is before tax, so there is a big benefit in that and also BIK is the only tax you pay on it which at lower band tax paying which you will be as a NQ nurse is peanuts.

I find it very hard to believe it works out worse off out of the scheme. If you must look outside of the scheme consider PCP or HP rather than a lease option, at least then at the end of it all you will own the car rather than simply renting it for 3 years and handing it back with nothing to show for the thousands you paid out.

 

[Concept Vehicle Leasing]

Ive had a look through other posts but cant find anything directly related to this.

My mum works for the nhs and has been offered to join a car leasing scheme.

At the moment she has her own car and claims 44p per mile for her work mileage.

We just need to get an idea of what the savings/costs are going to be involved.

Also is it a good idea or is she best staying as she is?

Any comments or links greatly appreciated

Hi Kimbombim

As a leasing provider we are always happy to give advise and assistance. I would suggest weighing up the options. Look at the costs of funding a vehicle via the NHS Scheme vs funding a vehicle via a loan vs purchasing the a vehicle and maintaining it yourself

Remember that vehicles are a depreciating asset, who that depreciation affects is governed by which way you feel is the better option for you. By leasing a vehicle via a Contract Hire route the depreciation is the risk of the leasing company and not you as the leasing company set a residual value (vehicle worth at the end of the contract) and the vehicle is handed back at the end of the contract.

Someone stated that you never own a vehicle. That is not entirely true. In leasing you have Purchase Contracts (Personal Contract Purchase, Lease Purchase and Hire Purchase even Finance Lease) where the vehicle can either purchased at the end of the term or even sold to a 3rd party. If you decide to go for a Purchase Contract where the vehicle can be purchased the depreciation risk becomes yours.

It would be good to get more info on the NHS Scheme so we can give you more informed advice.

Best wishes

 

[smo]

Where I said that you never own on a lease scheme, it is entirely correct.

Things like HP and PCP you can actually own the vehicle either with or without a baloon payment etc depending on setup, however with a lease you dont own it, ever, you just rent the vehicle - it is a point that needs to be made as many dont really understand and think they can "own" a car for £200 a month or whatever but in reality end up with nothing for their £2400 a year which may be in some cases better spend on a loan or other finance option

 

[Concept Vehicle Leasing]

Where I said that you never own on a lease scheme, it is entirely correct.

Things like HP and PCP you can actually own the vehicle either with or without a baloon payment etc depending on setup, however with a lease you dont own it, ever, you just rent the vehicle - it is a point that needs to be made as many dont really understand and think they can "own" a car for £200 a month or whatever but in reality end up with nothing for their £2400 a year which may be in some cases better spend on a loan or other finance option

With a Finance LEASE you do have the option to sell the vehicle to a 3rd party and then purchase it back, whilst giving a percentage of the sale proceeds the lessor, usually anything between 1 and 5%.

With Contract Hire you do hand the vehicle back BUT you can ask the lessor for a purchase price and the end of the contract and purchase the vehicle if you so wish, but this is not common practice and generally not very cost effective. Therefore, in general you can effectively own a vehicle which ever way you lease, although most people will go for a purchase contract if they want to own a vehicle at the end of a lease contract.

Again, its a case of weighing the options - lease vs loan/finance vs outright purchase and lets remember a vehicle is a depreciating asset so its a case of who takes the depreciation risk, the lessee, lessor or owner.