The benefits for employers
15% National Insurance saving
10% VAT saving, with businesses able to claim back 50% of VAT on the lease
Overall, this means that for every £1,000 spent on leasing, your business saves £250 in tax rebates.
The benefits for employees
You’ll save the highest rate of tax, which is either 32% or 42%, depending on your current tax bracket. This makes brand new EV’s cheaper than petrol/diesel equivalents.
66% cheaper to run a car when moving to an electric model
Only 1% Benefit in kind tax on electric vehicles, compared to 23% for combustion engine cars
Overall, this means that for every £1,000 spent on leasing, the employee saves £320-£420, depending on their tax bracket.
When combined, this is a saving of over 50% of the total cost of a personal EV lease, which is a significant financial benefit that every employer and employee should be looking to take advantage of.
The transition to electric vehicles has started and, now that the wheels are rolling, there’s no stopping it. With government schemes and entire industries adjusting to the change in government legislation, which aims to remove petrol and diesel engines from the market completely by 2030, we’re guaranteed to see more and more people starting to move towards electric cars. This is not something that’s a choice, but something that’s a necessity. If you’re looking to start that transition already, that’s fantastic - by making this change, you’ll be setting yourself and your employees on a road towards a more sustainable future now, rather than when it’s too late. As an incentive to make this start earlier, you’ll also be able to take advantage of the incentives that exist in today’s EV market, such as the salary sacrifice scheme.
Salary sacrifice is one of the most exciting schemes you’re likely to ever come across - the scheme is designed to make driving an electric vehicle as feasible, affordable, and enticing as possible for drivers of every status. From business owners to managers and executives, everyone earning above the minimum wage can make use of the salary sacrifice scheme to help them get behind the car of their dreams at an incredibly manageable monthly cost!
Here at eco, we’re trying to spread the word about salary sacrifice cars as much as we can; we’ve got a huge commitment to the scheme and the benefits that it has for the environment, which is why we’ve put together this guide! On this page, you’ll find every piece of information you could possibly need relating to salary sacrifice, from the fundamentals to the specific details such as “How do you salary sacrifice a car?” - don’t worry if you don’t know anything about salary sacrifice just yet!
If you’d like to get in touch with the team here at the Electric Car Organisation, you can do so right here on our website - head over to our contact page and you’ll find all the different options for contacting a member of the eco team, who’ll be happy to help you find a salary sacrifice (SS) leasing deal that suits your business and employees.
First of all, let’s take a look at just what the scheme is in simple terms. On the most basic level, salary sacrifice is an affordable way for employees to lease an electric car, facilitated by the business that they work for. Whilst this is nothing new - company cars have been a common workplace benefit for many years - it’s the way in which these deals are structured that makes them such an intriguing and enticing option for drivers. The salary sacrifice car scheme is a government scheme that’s been put in place to incentivise electric car adoption at UK businesses, with the aim to reduce the use of internal combustion engine (ICE) vehicles, leading to significant environmental benefits.
As a business with access to the salary sacrifice green car scheme, you’ll be able to gain access to some of the most affordable leasing deals for electric cars on the market; these deals are heavily discounted and enable drivers to afford cars that they likely would not be able to afford if they were not using the salary sacrifice on electric cars. These electric vehicles are designed to be more environmentally friendly and much cheaper to operate - this makes it more affordable for employees to drive and helps businesses in a number of ways too!
Whilst the phrase ‘salary sacrifice’ may sound daunting, it really isn’t; it’s a handy scheme that’ll enable your employees to get behind the wheel of some of the most enjoyable, efficient, and economical cars on the market today. For businesses, it will mean that it’s easier to meet environmental quotas and to attract new staff too, with the scheme being a brilliant employment benefit. With some providers, you’ll even be able to get exclusive deals on insurance, breakdown cover, and lots of other perks, making salary sacrifice to lease a car the ideal method of taking the first step into the world of electric vehicles without jeopardising any of your corporate wealth. So, now you know what the scheme is all about, what exactly are the benefits of salary sacrifice and how do salary sacrifice car schemes work...
The benefits of the scheme can be broken down into two different parts - these are:
The benefits for the organisation
The benefits for the employees
With salary sacrifice, everyone is a winner within the business - everyone will benefit from the scheme in one way or another, whether that’s in terms of access to the discounted lease deals or in the ability to meet environmental policy quotas and carbon footprint guidelines.
From a corporate perspective, you may at first be sceptical about the scheme, as it seems a little too good to be true; in part, this is true, as the scheme is being used as an incentive, but in general, there are no downsides to the scheme from a corporate perspective, but instead, a wide range of benefits to be had! As a business taking part in the scheme, you’ll be able to count any mileage in your leased electric vehicles towards your green quotas, such as ISO14001 Corporate Responsibility targets, which look at energy efficiency and the amount of green energy that your business consumes. By utilising the salary sacrifice scheme, you’re able to make huge strides of progress towards these protocols without having to make massive changes - you just need to offer your employees the chance to drive modern, technologically advanced cars at an incredibly affordable price point!
In addition to the above, there are also many financial benefits to your business, particularly if you’re able to sign multiple employees up to the scheme, as you’ll receive a higher level of VAT claim back and will be able to aim for more aggressive eco-friendly targets as a result. Furthermore, eco is looking to ensure that businesses engaging with salary sacrifice for car lease schemes are protected in the event that an employee leaves the company. Our revenue assurance scheme covers you financially in instances where an employee is no longer using their new salary sacrifice car.
The last benefit that we recognise with electric vehicle salary sacrifice lease cars is the impact that the scheme can have on your company’s image and reputation. Partners and potential employees now see environmentally conscious businesses as a more attractive prospect to work with/for, whilst customers will see your eco-friendly methods as an additional selling point for your service or product. When you combine all of this with the internal benefits, these external benefits present a full package of advantages that are sure to elevate your business to new heights. In the current market, the attraction and retention of staff have never been more difficult, so having these unique financial benefits at your business can help to lower the high recruitment costs that the market currently demands, loosening the grip that this has on your bottom line.
For the employee, the benefits are a little clearer to see - you’ll be given the chance to drive a fantastic electric car at a fraction of the standard market cost, which means you’ll have access to a higher quality vehicle at a lower price and a lower impact on the environment too. The cost of the lease deal isn’t the only financial benefit either - the cost of charging vs the cost of fuel, such as petrol and diesel, is drastically lower, saving you commuting costs every time that you make the journey to the office, shops, school, or social trips. In general, your car is the biggest single impact that you have on the environment, so reducing this footprint is one of the most effective ways to do your part in saving the planet.
With the public now more educated than ever on the impact that specific choices have on the environment, the possibility of driving an electric car on a salary sacrifice lease supplied by the business at an affordable price is a huge bonus. Employees are always on the lookout for new ways to be doing the right thing for the environment, so offering them the opportunity to drive an electric car is one of the smartest decisions that you can make in terms of employee attraction and retention.
You’ve probably seen the term ‘green fleet’ mentioned a few times in this guide already, but you’re probably wondering what exactly this term means - don’t worry, you’re not alone. The green fleet is a concept that eco is pioneering in the car leasing industry, helping businesses to tap into this unknown fleet that exists within their grasp but is not yet taken advantage of.
Our definition for the ‘Green Fleet’ is:
A “Green Fleet” is created when a company provides Electric Vehicles to staff as an “Employment” perk unrelated to any need to drive for company purposes. The full annual milage driven by these cars in a year can be aggregated to create a “Green Fleet” Co2 saving within the company ESG statement and often moves a company a long way down the road of becoming Carbon Neutral.
Company cars as a “perk” of employment were taxed out of existence in the 1990s, but Electric Vehicles offered to employers under Salary Sacrifice schemes, which deliver combined savings of over 50% compared to a personal lease, make EV company cars the must-have recruitment and retention tool for businesses.
The company providing the EV can claim the 4.6 tons of Co2 saving from switching from a petrol/diesel car, assuming an average of 11,500 miles driven by the EV. So, moving 100 employees would save 460 tons of Co2 which is 66% of the average company’s emissions.
You’ll likely be familiar with the term ‘fleet’ and you may even have heard the term ‘grey fleet’ (we’ll discuss this in more detail shortly), but the green fleet is an eco-original concept that we’re looking to project into the mainstream. To us, a vehicle in the ‘green fleet’ is a salary sacrifice electric car that will be operated by your employees for personal use. These cars will be personal vehicles, and should not be used for business use. However, by using the car to commute, head to meetings, pick the kids up from school or head to the shops, these miles accrued can be counted towards any green quotas. This is where the car salary sacrifice scheme presents the biggest benefit to businesses. By offering your employees the chance to drive a discounted electric car that is leased on behalf of the business, you’ll be able to count all of the miles completed in this vehicle towards your company's green quotas. This will likely bring you much closer to meeting, and even exceeding, your corporate responsibilities, which can often have a big impact on things such as public responses to your business and even your chances at gaining additional funding!
The green fleet has the potential to become your business’ biggest carbon footprint reduction scheme if executed effectively, and, with the assistance of the salary sacrifice scheme, it’s never been easier to encourage your employees to get involved. If you’d like to get the ball rolling with implementing this scheme at your company, you can liaise with the eco team to arrange a briefing with your team. During this, we’ll run through our survey, which allows us to assess the needs of your workforce as well as their capabilities to afford and operate an electric car. Once we have collated and assessed this information, we can offer guidance on how best to proceed on a salary sacrifice scheme that suits your workforce.
Traditional fleets are very different to the green fleet in a number of key areas, namely in the ways that these vehicles are used. Your business fleet is a group of vehicles that are owned and operated purely for business purposes - they are not used for staff outside of work. The best example of this is the vehicles used by haulage firms; the lorries are not used by the drivers for personal use, they are just used for their purpose at the business after which they are parked up until the next time they’re needed. This works well in these settings, but for businesses where company cars are used for things such as commuting to the office, transport to meetings, and tasks such as this, there is a missed opportunity to implement a grey fleet strategy, where you actually give your employees their own car for personal use, which they can use for business use as a secondary purpose.
The traditional fleet can also be rather tricky to manage - with a close eye on all usage and routes, it can become very tedious to keep all of the stats in line for an entire company fleet. Many businesses choose to use fleet trackers and management platforms to monitor this activity; however, this is a costly process that requires serious financial outlay from the business. In these instances, it’s easy to harm your profits due to a missed opportunity to implement the right kind of fleet system into your operations. For us, the easiest fleet to create is the green fleet, which will give your employees the high-tech electric car to drive that benefits the planets and offers reduces tax rates to your company.
The grey fleet has been commonplace in businesses that expect employees to travel on behalf of the company. This term refers to vehicles that are owned and driven by the employee, but when they are used for corporate purposes, the employee can claim back the cost for that use, usually on a pence per mile basis. Whilst this is favourable over receiving no compensation for using your own personal car for company purposes, it can also be a rather tedious process to claim back the exact amount that you have spent each month - in many of these scenarios, employees may even disregard their right to claim this money back due to the lack of value in the money that they’re reclaiming. Whilst this is a system that can benefit the business and the employee in some scenarios, it does not come close to matching the benefits of an electric car on a salary sacrifice scheme; with salary sacrifice schemes offering benefits way beyond that pence per mile reimbursement, grey fleet policies will likely not even be seen as an employment benefit in the near future, whereas salary sacrifice green car schemes will only grow in popularity.
By using the electric vehicle salary sacrifice scheme, everyone's a winner; the business can offer the scheme as an incredibly enticing perk of employment, whilst the employee receives their car at a large discount to the standard market price, which forgoes the pence per mile reimbursement that the grey fleet process would have offered. Alongside the large discount on the lease price, the business may also be able to offer payments towards fuel consumption too, however, the cost of this is much lower with an electric car than it would be for an ICE car.
With the scheme being so highly discounted, with many cars seeing reductions of around 32-42% off the standard lease price for the same vehicle outside of the scheme (this can rise as high as a 62% discount off the full price in certain tax brackets), it’s natural to think that the types of vehicle on offer will be limited, but that simply is not the case. With the electric vehicle salary sacrifice scheme, all available ultra-low emission electric vehicles are available for leasing, including all of the following favourites from each of the different car categories:
The UK is a nation that loves the hatchback. No matter whether it’s the compact size, the simple yet exciting driving experience, or the low cost that draws you to the hatchback, there are plenty of reasons to put these cars at the top of your shopping list. In general, hatchbacks are great for younger drivers looking to keep monthly payments at a minimum whilst navigating the tight city centre streets, but they can also be a great choice for older drivers who are looking for a car that gets them from A to B.
Our top picks for electric hatchbacks are:
The Peugeot 208 has been one of the most popular hatchbacks over the past few years and if the e-208 has anything to say about it, it’ll be a major player in the e-hatchback division for many years to come. The e-208 provides drivers with a fantastic combination of all of the key aspects that you’d be looking for in the day-to-day vehicle; it’s comfortable, looks great inside and out, and has a decent range that’s sure to be able to handle your daily driving needs with no problem at all. Inside, you’ll find a 7” touchscreen infotainment system that allows you to make calls, play music, and monitor performance, and this screen can be upgraded to a 10” version that features a sat-nav too! No matter whether you’re navigating congested city streets or winding rural roads, the Peugeot e-208 is sure to get you where you need to go.
Combining the classic look of the iconic MINI with the modern technology and efficiency of electric cars, the MINI Electric is sure to be a popular choice for many drivers looking for a small, compact, and fun to drive electric vehicle. Thankfully, MINI has stuck to its roots when building the MINI Electric, standing by the same principles of lively performance, high-quality design and build, and that gorgeous look that everybody adores. The electric-powered car is also rather practical too, providing a quiet, comfortable ride and adequate range that can handle most average commutes to work and for socialising.
The SUV has never been more popular than it is right now; with people looking to drive their cars for longer periods and prioritising comfort and practicality over aesthetic and showmanship, for the most part, the benefits of the SUV are perfectly aligned with the needs of most drivers in the market for a new car at the moment. In general, sports utility vehicles are larger cars with ample cabin space and a more robust build that offers durability and comfort to the driver and their passengers for short and long journeys. With this popularity rising at such a rate, it’s only natural that the electric vehicle manufacturers are looking to move into this space, and they’re doing so with fantastic impact.
Here are a few of our favourite electric SUVs on the market today:
If you’re a fan of BMW’s cars, particularly the X3, then you’ll love the iX3 - this electric car is essentially the same car as the X3, but with the combustion engine swapped out for the eco-friendly electric motor. Those who’ve driven the X3 will be well aware of how big a benefit this is; the iX3 is a sizable, comfortable, and practical car that’s got one of the best onboard entertainment systems in the world. Combine this luxurious ride with responsive handling and you’ve got a colossal car that improves every journey.
Skoda Enyaq iV
Skoda has had a huge resurgence in recent years, having released a string of excellent cars that have transformed their brand identity from one associated with budget cars to one that’s associated with premium quality, excellent ride comfort, and fantastic on-board equipment. When it comes to their electric SUV offering, Skoda does not disappoint. The Enyaq iV is a sophisticated car that you’re sure to fall in love with; the reliable SUV is economical, technologically advanced, and looks great too, making it one of the best SUVs on the market even when stacked up against petrol and diesel alternatives.
Of course, not every driver is always on the lookout for a simple car when choosing a new motor - luckily, there are plenty of luxury options on the electric vehicle market that are designed to quench that thirst. In fact, luxury cars were actually the first foray into the EV industry for some of the most important manufacturers in the sector, such as Tesla and Polestar! With a luxury electric car on a salary sacrifice car lease deal, you’ll be able to drive a truly spectacular vehicle at an incredibly low price, so be sure to check out our top picks below if you’re thinking about upgrading to a luxury car as you make the switch to electric!
Tesla Model 3
If you’re looking for the pinnacle of automotive technology in your next car, then a Tesla is probably something that you’ve considered to some extent. Tesla is seen as one of the leading pioneers in the EV industry, creating cars that push boundaries and merge the lines between man and machine, creating a driving experience that’s unlike anything else that you’ve ever experienced. The Tesla Model 3 is perhaps the most advanced model yet, with astonishing 0-60mph speeds and mesmerising performance that’ll have you convinced that you’re sitting behind the wheel of the best car on the planet. The Model 3 is also home to Tesla’s signature centre control panel, a large touchscreen device that allows you to manage your car to suit your needs at any given moment. Tesla cars are also famed for their fantastic range, which gives you more miles per charge than almost any other electric car in the world today. For many, the Tesla Model 3 is the best salary sacrifice car on the market at the moment.
The Polestar 2 is a car that combines high-end manufacturing with elite technology to produce a car that ticks all of the boxes. Coming from a standalone division of Volvo’s ex-performance department, Polestar produces cars that feel great, look fantastic, and perform as well as any other car on the market. They are, of course, fully electric, too. With the Polestar 2, you’ll be able to make use of the long-range models that are in production too, maximising the range that you’ll get from a single charge and alleviating any worries that you may have had about moving across to an electric car in the UK.
By now, you’re probably aware of a few of the benefits that come with driving an electric car, but if you’re still looking for the reason that helps you to make your decision and commit to an eco-friendly EV, this part of the guide is for you.
The benefits of driving an electric car are plentiful and are not just limited to the driver either, offering advantages to employees and employers alike. This is one of the driving forces behind the success that this scheme is likely to have over the coming years as electric vehicles gain a stronger hold on the domestic market. For us here at eco, we think the two major benefits that you’ll experience by making a switch to an electric car for your next vehicle can be defined in two categories: financial and environmental. By taking the financial aspects of car leasing and making it far more affordable, the salary sacrifice scheme ensures that the maximum amount of people see it as a viable option for their next car - if you can get a new electric car at a lower price than the relative petrol or diesel alternative, then you’re far more likely to opt for the electric car, as there’s no evident downside! Financial benefits aren’t the only advantage of electric cars; however, the environmental benefits are colossal and present us with a real chance to reduce carbon emissions and create a green fleet on the roads that’s more sustainable and conscious of the impact that it has on our planet.
First, let’s take a look at the financial benefits of driving an electric car on a salary sacrifice lease car scheme - whilst for many, the discounted lease price is enough to convince them to opt for an electric car through the company that they work for, this isn’t the only financial advantage that the scheme provides to drivers. In addition to the discounted lease price over the course of your contract, you’ll also have access to many secondary benefits as a result of driving an EV.
The first example of this is the difference in fuel costs; in a combustion engine car, you’ll be paying an extortionate amount of money for fuel whilst also doing horrendous damage to the environment, but with an EV this is not the case. Cars powered by electric motors cost just a fraction of the price to refuel (or recharge, as they simply plug into an electricity source), which saves money at pace. The price that you’ll be paying per mile is incomparable and can be up to 10x cheaper than the relative price in fossil fuels, which means the amount that you save throughout your lease will massively offset the cost of installing a charger at your home. Home charging is the cheapest way to recharge your electric car, as you’ll be able to access lower tariffs at off-peak times, such as through the night.
The second saving you’ll make is in terms of the charges that you’ll be exempt from when driving an electric car. Many major cities in the UK have now enforced congestion charges at peak times for most combustion engine vehicles, which can make trips like the morning commute a much more expensive journey - again, this is not a problem you’ll face if you’re driving a low emission vehicle such as an electric car. Electric cars receive a free pass to travel through these types of zones at all hours of the day, reducing the cost of your most frequent trips significantly and providing drivers with a huge benefit over the lease term.
Environmentally, electric cars are a massive step in the right direction - they produce far lower emissions and the design process is often much more conscious of the environmental impact too, which creates a process that’s much better for the planet across the board in all areas, reducing the carbon footprint of both the employee who drives the car and the business leasing it. The most obvious benefit for the environment when utilising an electric car is to the air quality of your local towns and cities. After years of damage caused by excess carbon emissions, pollution is at its highest levels of all time in most towns and cities, so now is the time to take action, make changes, and attempt to fix the damage before it’s too late. For most of us, the easiest way to change this domestically is to change our car usage, which accounts for around 28% of our total personal emissions, and to upgrade the heating and insulation in our homes, which accounts for over 50% of our total emissions every year.
If you’re unable to change your home emissions, this makes your car the easiest way to reduce your personal carbon footprint by almost 30%, just by simply altering the vehicle that you use to commute and socialise. By making this change, you can be confident that you’ve contributed to the large ongoing green movement that’s aiming to clean up our towns and cities and improve the air quality that surrounds us 24/7.
In the media, we’ve seen lots of myths surrounding electric vehicles, many of which shine a negative light on these cars, making them sound like an option that isn’t suitable for the average driver. In our experience, these stories are exactly that: myths. In practice, electric cars are incredibly useful and functional vehicles that are more than capable of providing an eco-friendly alternative to your combustion engine car. To help you cut through the noise and learn the truth about electric cars, here are some of the most common myths debunked:
Electric vehicles produce hidden carbon emissions that are similar to that of the carbon dioxide emissions released by petrol or diesel engines.
This tabloid headline myth is one that has been widespread across numerous different publications but is categorically false. According to a government study conducted in 2017, the ‘well to wheel’ emissions of a petrol car is around 211g of carbon dioxide per kilometre, whereas an electric car was producing just 73g over the same distance. ‘Well to wheel’ is the only unbiased way to calculate total emissions for a vehicle and its fuel, as this takes into account the energy required to produce, manufacture, and distribute both the unit and the fuel that powers it.
Electric cars need to be charged too often, leading to ‘range anxiety’
This is a statement that we’ve seen far too often, but again there is no truth behind this. Modern electric cars are more than capable of handling substantial journeys, much like a combustion engine car is. However, the ‘range anxiety’ that surrounds electric vehicles is still present. As a salary sacrifice car scheme example:
As of 2021, the average range of an electric car is 197 miles and the average commute in the UK is 23 miles, which means you’ll be able to travel to work 8 times before you need to recharge your car - this means you’ll only need to charge your car twice a week to manage the full weekly commute. To save costs, you’ll be able to do this through the night using your home charger, where you can take advantage of lower electricity rates that are available with your utility service provider.
If you’re having trouble getting past the range anxiety that surrounds electric vehicles, it’s important to try and block out the noise and remain focused on the facts - electric vehicles are improving month on month, with manufacturers making huge advancements relating to efficiency and charging ranges. So, by paying attention to the statistics, you’ll be able to put your mind at ease and alleviate that fear.
Charger points are too hard to find.
Whilst this may have been the truth many years ago, times have moved on and public charging points are incredibly easy to find across the country at this point, particularly at modern office buildings, large city centres, and service stations on motorways for low-charge emergencies. In general, the existence of charging points is not the main issue - rather, it is locating them that can be a bigger issue as they are far smaller and more discreet than the traditional petrol stations that you’ll be used to. Electric vehicle charger points are now located streetside, in car parks, and even at supermarkets, making it easier than ever to charge your car when you’re out and about. Of course, the ideal place to charge your car is at home, where you can have your own personal charger installed - if you’d like to learn more about charging your electric car, be sure to keep reading our guide! With eco as our business partner for electric vehicles salary sacrifice scheme implementation, you’ll never have to worry about a lack of charging solutions, whether that’s at home or in the office. With the support of eco and our comprehensive network, we’ll be able to supply you with workplace chargers and at-home charging stations that help your employees to charge their vehicles in the most efficient and effective way possible. For more information on eco’s charging solutions, please get in touch with us today.
Here at eco, we understand that the benefits of salary sacrifice car schemes are likely to have sped up your decision to lease an electric car in 2022 - by doing this early, you’ll be able to take full advantage of the scheme as early as possible, giving you the chance to feel the benefits for as long as possible. As things stand, there are also tax benefits that help electric car drivers to save on costs, but these are also liable to change over time, so by committing at this stage, you’ll be able to reap the full rewards of driving an electric car whilst they exist in the manner that they do.
However, it’s abundantly clear that making this switch is a big decision and not one that people will take lightly - any car that you choose indicates significant financial outlay over several years, so you need to be confident that you’ve made the correct decision. This is where the eco team is your go-to assistant for all information relating to salary sacrifice company cars, electric cars, leasing deals, and everything in between. Our team are experts on all aspects of the car salary sacrifice scheme, from the perspective of the employer and the employee, so no matter what your stance is, we’ll be able to give you the clarity you need to fully understand the scheme and the benefits that it presents to you. As your primary business partner for electric vehicle salary sacrifice scheme rollout, you’ll have all of the tools you need to encourage adoption of the scheme without any of the hassles - the eco team can handle it all for you! With a wealth of experience in implementing the scheme, as well as our own bespoke suite of services that makes your experience relaxed and stress-free, you’ll have your green fleet up in no time at all!
Here is a little more information about the services that we offer in relation to our salary sacrifice scheme car leasing deals that can help you to have the best possible experience with your electric car:
eco’s car leasing service is our bread and butter. It’s the service where we have the most experience and also the foundation upon which we operate. Before we can chat with you about any of our other offerings, it’s important that you fully understand our leasing services and the financial and environmental benefits that leasing a car offers. These deals are often frowned upon as you aren’t the owner of the physical vehicle, but in a modern age where technology advances at such an alarming rate, do you really want to be stuck owning an asset that is rapidly depreciating in value?
Leasing a car gives you more freedom and peace of mind than you could probably ever have imagined as a driver; there are no stiff up-front costs and you won’t be forced into paying an extortionate ‘balloon payment’ for your car either! Lease deals allow you to keep the car for a set period of time, detailed in your contract, for a set fee each month. This fee is essentially a rental fee for the vehicle over the time that it is in your possession and has no strings attached; once your lease deal is over, you simply hand the car back to the dealership with no additional payments, provided the car is in good condition minus general wear and tear. Once handed back, you’re free to find a new car to take out a deal on and you can start the process all over again. One of the biggest benefits of lease deals is that you can often gain access to exclusive maintenance deals that cover repair costs during your lease term - as the car is still the dealership’s asset, they’re keen to keep it in good condition so that they’re able to sell it on for a good price at a point in the future, so you’ll find that you may be able to get a maintenance package as part of your lease.
For businesses looking to make the switch, eco looks to ensure that everything runs as smoothly as possible - once you’re in touch with our team, we can look to design a bespoke transition model that helps your business to embrace the salary sacrifice EV car scheme as effectively as possible. By integrating the scheme and creating your own ‘Green Fleet’, you’ll be setting your company up for a greener, more sustainable future that’s brighter than ever before.
To browse our lease deals and find a car that suits you in the eco range, you can head over to the eco lease page today, where we offer prices for both personal lease deals and salary sacrifice scheme packages!
Here at eco, we’re not just looking to offer a car leasing service for electric vehicles but instead fill the gap in the market for a holistic, all-in-one service that gives you everything you need to test drive, lease, charge, maintain and insure your electric car with one convenient provider. By doing this, we’re aiming to provide businesses with the ability to streamline their company car benefit packages significantly without all of the stress. In doing this, one of the key services that we’ve developed is our charging service, which helps electric car drivers install and operate their charging solutions in the most effective way possible, at home and out in public.
The eco Charging App has been developed to offer our clients an ideal way to manage all of their charging needs for their personal lease and salary sacrifice lease electric cars. The app is full of useful features and will give users access to a complete network of charging solutions that make driving an electric car on a salary sacrifice package easier than ever. By using the app, you’ll be able to find the nearest charging points to your current location using our full UK map, with specific filters allowing you to find stations that are open all hours of the day. This feature is perfect for those times where you need to recharge at obscure hours in an unfamiliar location.
Our app is designed to be used by everyone within your electric car network - from employees to fleet managers and directors, everyone is able to access the app and find the information that they need, whenever they need it. As a fleet manager, you’ll have access to a range of features that make it simple and efficient to monitor your fleet at all times, giving you all of the relevant information relating to your company’s green fleet. Private stations can also be identified within the eco Charging App, meaning you can find exclusive charging locations that are specifically tailored for eco customers. To gain access to all of these benefits, simply sign up for the eco application today!
How to charge an electric vehicle at home
Charging at home is a topic of much interest for most people who are thinking of investing in an electric vehicle; whilst the availability of public chargers does make it easy for anybody to own and drive an EV, home charging is something that many drivers consider to be crucial before making the switch. Thankfully, home charging kits are now becoming incredibly easy to install with the help of a qualified electrician, meaning you’ll be able to set up a charging station directly on your driveway or in your garage. Of course, to utilise one of these chargers, you’ll need the space for one; on-street parking will not be enough space to do this as you’ll have to run the charging cable from the unit to the car, so if you’re looking to have a home charger, you’ll need to ensure that you have off-street parking available first.
If you do have off-street parking at your disposal, then you may want to seriously consider investing in one of these home charging solutions. They give you more flexibility to charge at a time that suits you and you can charge your time during your resting hours, which means you can have a fully charged vehicle every time that you leave your house! In addition to this, home charging also allows you to make use of the lowest electricity rates at off-peak times, which will reduce the cost of recharging and make your car cheaper to run on the whole. If you’d like help setting up a home charging station, or you’d like to look at securing a utility package that’s suitable for electric car charging, get in touch with our team today for further support.
With more and more businesses now implementing green strategies at the office, we’re also now seeing more opportunities for chargers to be installed at your company car park too - this again provides a fantastic opportunity to charge your electric vehicle during your downtime as you work. This should, in theory, ensure that your car is fully charged and ready for your next journey, eliminating any anxiety you may have surrounding low battery levels.
Can you charge an electric vehicle when you’re travelling?
One of the biggest fears that people have when choosing to drive an electric car is that they’ll struggle to find a place to charge their vehicle when they’re away from their homes - this fear is a natural one but is really no different to what you’d experience with a combustion engine car. These days, electric charger points are found everywhere, from apartment parking spaces to train stations and tram stops - anywhere that you might think to park your car, there’s a chance that you’ll find a charging station ready and waiting for your vehicle. In emergencies, this availability is a game-changer - with chargers readily available and our app by your side to help you locate your nearest charging point, you’ll be able to get your car plugged in and ready to go in no time at all.
Now, you may be wondering how long you’re going to be left without charge for when your car dies - of course, with a petrol or diesel car you can go straight away once the car is full of fuel, but this isn’t quite the case with electric cars. With an electric car, you will have to wait a little longer before you can get back on the road again, but the wait is nowhere near as long as you’d imagine. With superfast charging stations now located across the country, you’ll be able to get your car back up to 80% capacity in less than an hour in most cases, which is more than enough charge to get you back home to your personal charger as soon as possible.
As with any vehicle purchase, test driving is incredibly important when choosing to lease an electric vehicle - this is particularly true for those who have never driven an electric car before, as the feeling is incredibly different to the experience that you’ll have had driving combustion engine cars previously. Whilst many leasing companies make it quite tough to organise a test drive in an electric car, salary sacrifice is easy thanks to the different approach that we take here at eco. With eco Testdrive, you’ll be able to take your potential lease car for a proper test drive, allowing you to get a real feel for the car before you commit to a long-term lease. When we say “test drive”, we’re not just talking about a few laps of the local streets around a dealership either - you can take out one of our eco Testdrive packages, which give you an extended period in the car, usually 1-3 months, which enables you to get a real feel for the car that you’re driving. This means you can be sure that you’re committing to the right car when the time comes to sign the contract on your long-term lease deal. If you aren’t happy with the model that you leased, you’ll be able to hand that back early without having committed to a longer contract, saving you from driving a car that wasn’t to your taste for an extended period.
eco Testdrive can also be used as a way to get used to an electric car whilst your current order is on hold - electric cars can often be a little more difficult to source, and the delivery time may be a couple of months at times, so being able to drive a fun, comfortable, and economical car in the meantime is the ideal solution.
Why do you need to test drive an electric car?
Test driving your electric car is a crucial part of the purchase process. Not only does a test drive help you to get to grips with how the car feels on the road, but it also gives you a chance to take a closer look at the technology inside the cabin too - with an electric car, this tech is a huge part of the appeal, so it’s natural to want a hands-on look at this before you make your final decision on which car to lease through the salary sacrifice scheme.
Electric cars are very different in the way they feel and, unfortunately, this can take a little bit of getting used to, particularly if you’re a big car enthusiast who’s used to loud roaring V8 engines and the fiery rumble that comes along with it. The experience in an electric car is a much more relaxed and peaceful one - the roaring engine noise is swapped for a gentle hum and whirring, which feels almost futuristic to the ears. One thing that you may find tricky with the lack of engine noise is the physical mechanics of driving the car; as a learner, you may have been taught to feel the messages that the engine is sending you and to listen for certain signs from the engine, but with an electric motor, this is not always possible. To assist you with this process, you’ll have an intelligent on-board system that’s able to offer insights into your driving - in most cases, you’ll have a digital speedometer with a rev counter, which will help you to find the biting point for gear changes and so on. Whilst it may take a bit of getting used to at first, we’re confident that a relaxing test drive in a wonderful electric car will help you make the best decision.
If you’re offering out a full fleet of electric cars to your employees, creating your very own green fleet, you’re probably going to have to find a cost-effective insurance plan that keeps your assets protected. These cars will be used as employment incentives for new and existing staff rather than as company cars, so personal use is the primary function of your green fleet vehicles. Of course, many issues may arise during the course of the lease contract, one of which is an employee leaving your business after having taken out this lease deal. As the deal is secured against the business, it’s likely that the payments will be the responsibility of your company, but don’t worry just yet - the eco team will be able to assist you in securing revenue assurance policies as part of your salary sacrifice scheme, protecting you in such situations. This is a unique scheme that’s bespoke to our service here at eco, so if you’d like to have this extra revenue assurance as part of your salary sacrifice car leasing scheme, be sure to get in touch with the eco team.
Another issue that may arise is that of accidents relating to the vehicle; with the vehicles being used for social and personal use, this heightens the likelihood of accidents occurring when compared to a vehicle that is purely for corporate use, so comprehensive insurance is key. As a luxury asset, electric cars often fall into the higher insurance brackets; when you consider the fact that the parts required for repair are often more difficult to source and the work is more complex than with combustion engines, so requires specialist attention, it’s easy to see why this is the case. Whilst you don’t necessarily need specialist insurance for an electric car, dealing with a tailored electric car insurance provider can be a very useful choice in the long run - you’ll be able to find bespoke policies that feature maintenance plans and services included in the price, which keep your car ticking over just fine for the duration of your contract. eco is partnered with Seopa and Quotezone, who both provide specialist insurance deals for low-emission electric cars - for more information, give us a call or contact us online today.
Now that you have all the information that you need to make a decision on whether to engage in the salary sacrifice scheme, you’re probably wondering what the next steps are. In general, there are two different things that can happen at this point:
As an employer, you begin to gauge whether the scheme is something that your employees would be interested in and whether salary sacrifice for electric cars is something that your employees could feasibly manage. If gathering this information is something you need assistance with, you can get in touch with the Electric Car Organisation team, who will be able to conduct the survey on your behalf, collating all of the relevant information that is required.
As an employee, you will need to learn whether the salary sacrifice scheme is something that your company would be interested in engaging with. Whilst the scheme does present many key benefits for both employers and employees, some businesses do still distance themselves due to the fear of change. If this is the case, we can assist you in laying out all the information in a way that’s clear and easy to process for your managers and directors - following this, they will then be able to make an informed decision regarding salary sacrifice leasing for the business.
For more assistance on the salary sacrifice car lease scheme or to discuss action plans for implementation at your business, please feel free to contact the eco team. Our experts are on hand to assist you with your questions and queries each day by phone, email, and our online contact form! Just pick the method of contact that you prefer and we’ll get back to you in no time at all.
Before we leave you to process all of the information in this guide to salary sacrifice and electric cars, here’s a recap of some of the key benefits and information that you need to take away:
The scheme can be used as an employee benefits scheme at your business.
Terms for leavers and life events can be negotiated to ensure that your revenue is assured alongside the salary sacrifice electric car HMRC scheme.
As a business, it costs you nothing to set up the scheme and it’s incredibly easy to facilitate with the help of eco.
Businesses of any size can apply to offer this scheme to their employees.
The scheme can be offered to new recruits as an enticing perk or as a retention bonus for existing employees.
National insurance costs will be lowered for your business.
Miles accrued by your employees as part of your green fleet count towards your sustainability goals and zero-emission miles.
You’ll be playing a key role in reducing air pollution in your local community.
Salary sacrifice EV car scheme lease deals are a way for employers to lease a car on behalf of their employees.
Your team member will be able to drive an economical, high-tech electric car, paid for as part of their gross salary.
By driving an electric car as part of the salary sacrifice scheme, you’ll make savings on the cost of the lease in the form of a Benefit in Kind, which is at a lower rate for electric cars until 2025.
Tax and national insurance savings are also offered to electric car drivers as part of this scheme.
Your employees will be able to use the car for personal and business use.
Your employees will be able to navigate through Clean Air Zones and Ultra Low Emission Zones at no extra cost.
At eco, our mission is to lead the way into a brighter, cleaner future using electric cars as the centrepiece of our movement. We’re looking to help the environment without incurring extra costs for businesses in the UK - whilst it seems far-fetched, it’s actually much easier than you’d think. eco was created to shine a light on the levels of damage caused by corporate vehicles that still use combustion engines; transport is a vital part of every business, but this doesn’t mean that you can’t take action to make this a more sustainable practice too. Through years of disregard for the environment, we now find ourselves in a state where air pollution caused by the burning of fuels such as diesel and petrol in exhaust pipes is having a direct impact on the health of both the planet and the people in our communities.
eco is encouraging businesses and their employees to make the first move towards a greener and more sustainable form of travel by adopting a fleet of greener, more environmentally friendly, vehicles, named the green fleet. Whilst this change feels daunting, it’s actually easy, stress-free, and hugely beneficial for the planet and your wallet too! By utilising the salary sacrifice scheme and its BIK allowances, you’ll be able to offer exclusive access to the most affordable electric car deals on the market - this is part of a government scheme to meet their greener transport quotas by 2025. For your employees, the benefits are incredible; they’ll have access to a fantastic range of wonderful new electric cars at a fraction of the usual market price, offering sustained savings throughout the lease deal in terms of both the cost of the car and the cost of fuel too! From a corporate perspective, you’ll be able to encourage a more eco-conscious mindset within your business and make huge strides towards your corporate responsibility goals relating to the environment by counting all of the zero-carbon miles travelled by your employees.
If you’d like to chat about how to salary sacrifice a car, the best salary sacrifice car deals on the market, or the benefits of a salary sacrifice electric vehicle in person, be sure to pick up the phone today!