ANDY Bruce, the CEO of Fleet Alliance, says he expects the shortage of semi-conductors to continue throughout 2022 and impact on new vehicle supply. But with OEMs prioritising EVs to meet CO2 caps, he believes this will make salary sacrifice increasingly important for the market.
“We have seen a dramatic increase in the electric models now available and coming onto the market as the manufacturers move away from ICE technology.
“However, buyers want to do the right thing for the environment ahead of any government action. And my sense is that companies in particular are being driven by the need to do the right thing well in advance of any deadlines, driven by their own ESG policies rather than government targets.
“As a result, we see salary sacrifice being extremely important in the coming years, especially under the current tax regime which offers huge advantages for corporate buyers with benefit-in-kind tax rates as low as 1% currently, rising to 2% from April until April 2025.
“We are seeing a huge number of enquiries from businesses that are not currently customers who want more information about salary sacrifice and the opportunities that exist. They may still operate company cars but want help in making electric vehicles available to a wider cross-section of employees.
“This is at the heart of our core competence and will be hugely important for us and our growth ambitions going forward.”
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
