Salary Sacrifice schemes are becoming a popular method of buying new vehicles, but how do they work, and what are the actual benefits? In this article, we are going to explore some of the benefits of opting in for a salary sacrifice scheme.
What is a Salary Sacrifice Car Scheme?
A salary sacrifice car scheme is an arrangement between you and your employer, whereby you sacrifice a portion of your salary in return for the ability to lease a new car. The amount that you sacrifice is usually taken off before tax, which means that you end up paying less tax overall.
The benefits of an electric salary sacrifice scheme are numerous, but here are some of the main ones:
- Lower upfront costs. Because you only have to pay for the monthly lease payments, rather than a large down payment, the initial costs of getting an electric car through a salary sacrifice scheme are much lower than if you were to buy one outright.
- Lower running costs. Electric cars are cheaper to run than petrol or diesel cars, so you could end up saving money in the long term.
- Tax benefits. As we mentioned above, because the amount you sacrifice is taken off before tax, you end up paying less tax overall.
- Employee benefits. If your employer offers a salary sacrifice scheme, it may be possible to get other employee benefits in addition to a salary sacrifice car. This could include discounts on fuel, gym memberships, and many other perks.
- No maintenance costs. Most new electric cars come with quite generous warranties, so you won’t need to pay for any repairs or routine maintenance during the lease term – saving you even more money.
Benefits of an Electric Vehicle?
Salary sacrifice schemes are a great way to get your hands on a brand new electric vehicle – but why would you want an electric car in the first place? Well, there are a number of benefits associated with these vehicles that make them an appealing option for many people. Some of the key benefits include:
- Lower running costs. As we mentioned above, electric vehicles are cheaper to run than petrol or diesel cars, due to the low cost of electricity and the fact that they don’t require oil changes or other routine maintenance.
- Good performance. Electric cars can offer surprisingly good performance – in many cases, comparable with traditional petrol or diesel vehicles on the market today.
- Less noise pollution. Because electric cars don’t have an internal combustion engine, they are much quieter than petrol or diesel vehicles – a real benefit in cities and towns where there is a lot of vehicle noise pollution.
- Good acceleration. Some electric vehicles offer very good acceleration, which can be great fun to experience and useful for getting around town quickly.
- Zero emissions. One of the main benefits of electric cars is that they produce zero emissions, which is great for the environment.
Overall, there are a number of reasons why opting in for an electric car salary sacrifice scheme could be a good idea. If you are looking for a new car, and want to save money on running costs and taxes, then an electric car could be the perfect option for you. Do your research and talk to your employer to see if a salary sacrifice scheme could work for you.