THE popularity of salary sacrifice is growing, with customers attracted to the low cost of acquiring electric vehicles through provision of the funding scheme.
Many leasing brokers offer salary sacrifice as part of their financial suite of business offerings, Fleet Alliance recently joining a list that includes Bridle Vehicle Leasing, Octopus EV and Fleet Electric.
“The introduction of zero and very low rate benefit-in-kind taxation rates on EVs has made these schemes very attractive,” explained Richard Cox, a consultant at broker funder Arval.
“The latest, most advanced and environmentally-friendly cars can be offered to employees at extremely attractive monthly rates, supported by more choice in the electric car marketplace, which means that there’s an option for every budget and lifestyle need.
“We are finding that salary sacrifice fits not just the needs of people who would like a company car and do not currently qualify for one, but also employees who have taken a cash allowance option and are looking for alternative car provision.
“The level of interest being shown across companies with which we are working is ever-growing. These schemes provide a range of genuine advantages to employers and employees, with no real downsides or compromises.”
Cox said that the growth in salary sacrifice vehicles the company operated had risen 280%, with the majority of those vehicles being EVs. He added:
“It shows exactly how rapidly EV adoption can occur in the right conditions, which is something that we believe is extremely important from a corporate point of view and as we all work towards the 2030 electrification deadline.”
For more on salary sacrifice read our special feature: How can you make salary sacrifice work for your customers?
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.