If you’ve ever considered getting an electric vehicle (EV), you’ll no doubt have heard about the benefits they can offer. However, one barrier to getting an EV can be the price, but with the salary sacrifice scheme from loveelectric, you have the wide choice of some of the best EVs on the market today at more affordable prices.
What is salary sacrifice?
A salary sacrifice is when an employee forgoes a portion of their salary and in return, they receive a benefit that is not monetary. So basically, you ‘sacrifice’ a portion of your wage to pay for a benefit and as a result, you’ll get taxed less! You may already have heard about salary sacrifice in the context of things like pension or childcare and now, electric cars!
Salary sacrifice electric car
So, how can you get an electric car? The answer is simple, if your employer signs up to the loveelectric salary sacrifice scheme, you will have access to a wide variety of electric cars; every make, model and colour, for a much more affordable price. But that’s not the only benefit, so why not look through our list of the key reasons why getting an EV through our scheme is a great option!
One major benefit of getting an electric car through salary sacrifice is that it can radically cut down your monthly car expenses. As mentioned, being signed up to a salary sacrifice scheme means you’ll end up paying less in tax, but how does that work? Well, the primary saving is through paying less in income tax. The amount of tax your pay is directly dependent on how much you earn, so if you’ve given up a portion of your salary through salary sacrifice to say, get a new Mercedes, technically your salary will be lower and in turn, your income tax will also be lower.
There is another tax saving alongside income tax, and that is your national insurance contributions (NIC). NIC, just like income tax, is based on the salary you earn, so this also means that leasing through a salary sacrifice scheme will lower your NIC costs. If you’d like to learn more about this, check out our tax breakdown explanation here, or if you’d like to see an example of how much cheaper leasing through a salary sacrifice scheme can be compared to traditional leasing, check out this example.
Additionally to the tax savings, through the loveelectric salary sacrifice scheme, on average customers will save 50% of their monthly costs of leasing, including maintenance and servicing, saving thousands of pounds every year!
Low ‘fuel’ costs
Another aspect is that EV drivers actually end up saving a fair amount of money as the electricity costs are far lower than fuel for a vehicle with an internal combustion engine. Let’s compare two cars, the BMW 3 series and the Tesla model 3, both roughly equal in price point and performance. With the Tesla model 3, the cost to charge it is roughly £300 in charging every year, whereas the cost of fuel for BMW is more than double that cost, at £623 every year.
If you’re based in Scotland, you can leverage the ChargePlace Scotland network which has multiple sites that offer charging for free. All you need to do is download the app, pay a one-off fee of £10 and from then on you can access all of the charging points for free. For more information on this, check out Zap Map’s guide on ChargePlace Scotland.
There’s also potential to save money through choosing a good energy provider, although comparing different providers and tariffs for the purpose of saving money on charging your EV is often not as simple as comparing a standard energy tariff. We recommend you take the time to fully research this to ensure you’re getting the best possible deal. Money Savings Expert has a couple great tips on things to look out for.
No upfront costs or deposit required
When you sign up to loveelectric, you don’t have to pay a deposit or any other fees, it’s as simple as selecting an EV you’d like, signing some papers online and then paying the leasing costs each month from your salary. There also aren’t any delivery charges or any final payments when your contract ends (other than costs for excess mileage or potential damage to the vehicle). If you want to have a look at which cars available with loveelectric and how much you could save, click here.
It’s good for the environment
There’s been a significant shift towards being much more environmentally conscious these days, and choosing an electric car is one of the ways people are making this change.
Throughout the entirety of the lifespan of an EV it will pollute far less when compared with internal combustion engines (ICE), especially when it’s charged using electricity that comes from renewable energy sources.
There’s also a common misconception that going electric doesn’t make much of a difference environmentally and although the production of EVs isn’t 100% free of carbon emissions, when taking into account the total lifespan of an EV, including everything from production, driving and charging they are far better for the environment. (EPA)
Access to premium electric cars at an affordable price point
If you’re a car fanatic or just someone with a dream EV in mind, you’ll be well aware that buying a brand new EV outright can be very expensive. At loveelectric we’re passionate about getting you the EV you want while being able to offer that dream car at a much more affordable price point. You could get a brand new EV for up to 50% less than the average cost.
Maybe you don’t want to be tied down for too long with the same old car that may not be as exciting in a couple of years’ time. Signing up to a salary sacrifice scheme may just be the solution you’ve been looking for! With loveelectric, you’re able to be much more flexible, as your contract could be as short as 24 months (an even shorter term of 12 months is coming soon!) and you’ll have access to a wide variety of electric cars offered at an unbeatable price, with all of the breakdown cover, maintenance servicing and early termination protection fees included. If you’d like to browse the range of cars we offer, click here.
Breakdown, maintenance and servicing is covered
As previously mentioned, your breakdown, maintenance and servicing is all covered if you sign up to the loveelectric salary sacrifice scheme, plus you’ll get 24/7 breakdown assistance so you can feel good knowing we’ve got your back!
What happens if I leave my job?
If you leave your job, there are two main options. If possible, we’ll work to have your contract moved to your new employer provided this is an option. If that is not a possibility, we’ll try to move your contract to a colleague at your former place of employment.
However, if neither of these options are possible, we will protect you and your employer from any early termination charges the leasing company may levy. All that we ask is for one month’s “rent” as an administration charge to end the lease early.
What is BIK? And do I have to pay for it?
Yes, Benefit in Kind (BIK) is a form of tax that has to be paid if you are an employee who is receiving a benefit resulting from your employment. If you want to read more about how it works click here.
How do I find out if my employer is eligible to sign up?
A general guideline to know whether or not your employer may be eligible is if the company is profitable and has been trading for over 2 years, however this is just a guideline and we do make exceptions, so if you’re interested, sign up here to see if our salary sacrifice scheme would work for your company!
If you’re looking for additional resources to encourage your employer to sign up, why not share our previous post on the benefits of an EV salary sacrifice scheme here.
love to join? Help your employees benefit from one of the best employee benefit schemes going without it costing you a penny. Drop us an email and we’ll be in touch within 24 hours.
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