Salary Sacrifice Car Prices: The Best Deals for the Best EVs
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Thanks to salary sacrifice schemes in the UK, electric cars are 30-60% cheaper than leasing or buying outright.
That means many employees can get behind the wheel of a brand-new EV for £250–£400 a month (net) with insurance, servicing, maintenance, tyres, breakdown cover, and more all included as standard.
In this guide, we break down exactly how salary sacrifice car prices are calculated and show real-world examples of what you’ll pay across different salary bands. If you’ve ever wondered whether an EV is truly affordable, this is where you’ll find the answer.
How salary sacrifice car prices are calculated
Salary sacrifice pricing works differently to standard car leasing. Your monthly car payment comes from your gross salary (what you earn before tax), which means the scheme lowers your Income Tax and National Insurance.
Here's what makes salary sacrifice prices lower:
Tax and National Insurance savings do the heavy lifting
When your gross salary is reduced, you naturally pay less Income Tax and NI. Those reductions effectively “discount” the cost of the car.
For most drivers, these tax savings alone reduce the net monthly cost by 30–60%, depending on your salary band.
The monthly price includes far more than a lease
A typical lease only covers the car. Everything else, insurance, servicing, new tyres, breakdown cover, needs to be added on. With salary sacrifice, all of that is already baked into the price. This is why salary sacrifice pricing can feel lower than expected. You're comparing it to a retail lease that doesn’t include the same things.
Electric cars benefit from ultra-low Benefit-in-Kind tax
Because EVs emit no tailpipe emissions, their Benefit-in-Kind (BiK) rate is just 3% in 2025/26, rising only 1% per year afterwards until 2028.
This tiny tax charge is one of the biggest reasons salary sacrifice exists for EVs in the first place. HMRC designed it to make going electric dramatically cheaper than choosing a petrol or diesel car through work.
So, what actually determines your monthly price?
- Your salary and tax band — higher earners unlock bigger tax savings.
- The car itself — list price, trim, battery size, and manufacturer offers all play a role.
- Your contract choices — annual mileage and lease length change the gross price.
Take an employee earning £40,000 who chooses an EV with a £400 gross monthly cost.
Once Income Tax and NI savings are factored in, their actual take-home pay reduction is roughly £280.
They’re driving the same car, but paying 30% less than the headline cost.
Want to understand the mechanics in more detail? Read our guide on how salary sacrifice works.
Salary Sacrifice Electric Car Prices by Salary Band
Real-world pricing varies significantly based on your earnings. Below, we break down what popular EVs actually cost per month through loveelectric's salary sacrifice scheme.
Important: All prices shown are net monthly costs (what you'll actually see deducted from your take-home pay) unless otherwise stated and include insurance, servicing, maintenance, tyres, and breakdown cover.
Prices assume a 48m lease, 5,000 annual miles. AB10 postcode and DOB of 1980.
You can find more salary sacrifice examples here. In it we look at payslips before and after, how cars differ across salaries, and how they compare to petrol car prices.
Electric car prices for: Affordable City EVs
Perfect for urban driving, these compact EVs offer impressive range and low running costs. They're ideal for first-time EV drivers or those on smaller budgets.
Fiat 500 Electric
£35k salary (20% tax bracket)
- Gross sacrifice: £597/month
- Net cost: £437/month
- Saving vs standard lease: 27%
£55k salary (40% tax bracket)
- Gross sacrifice: £597/month
- Net cost: £349/month
- Saving vs standard lease: 42%
The electric Fiat 500 offers around 199 miles of range and iconic Italian styling. Through loveelectric's salary sacrifice scheme, higher earners can drive this stylish city car for just over £300 per month, all-in.
MG4 Long Range
£35k salary (20% tax bracket)
- Gross sacrifice: £523/month
- Net cost: £387/month
- Saving vs standard lease: 26%
£55k salary (40% tax bracket)
- Gross sacrifice: £523/month (est.)
- Net cost: £317/month
- Saving vs standard lease: 40%
With up to 288 miles of range in the Trophy specification, the MG4 offers excellent value. It's practical for longer journeys while remaining affordable through salary sacrifice.
MINI Cooper Electric
£55k salary (20% tax bracket)
- Gross sacrifice: £587/month
- Net cost: £346/month
- Saving vs standard lease: 42%
£75k salary (40% tax bracket)
- Gross sacrifice: £587/month (est.)
- Net cost: £357/month
- Saving vs standard lease: 40%
Premium compact motoring with British heritage. The electric MINI combines go-kart handling with zero emissions and a range just shy of 200 miles.
💰 Reloved® Savings: Smaller city runaround EVs are also available through loveelectric's used marketplace. A used Fiat 500 or MG4 could cost only £250/month net for a £30k earner - saving an additional £100/month compared to new.
Explore affordable EVs on loveelectric.
Electric car prices for: Family SUVs
These mid-size electric SUVs offer the best balance between space, range, and cost. Perfect for families who need practicality without luxury price tags.
Kia Niro EV
£40k salary (20% tax bracket)
- Gross sacrifice: £655/month (est.)
- Net cost: £485/month
- Saving vs standard lease: 27%
£55k salary (40% tax bracket)
- Gross sacrifice: £655/month (est.)
- Net cost: £391/month
- Saving vs standard lease: 41%
The Kia Niro EV provides around 285 miles of range with spacious family-friendly interior. At only £391/month net for a higher-rate taxpayer, it's exceptional value for a practical family SUV.
Hyundai Kona Electric
£40k salary (20% tax bracket)
- Gross sacrifice: £679/month
- Net cost: £500/month
- Saving vs standard lease: 27%
£55k salary (40% tax bracket)
- Gross sacrifice: £679/month
- Net cost: £400/month
- Saving vs standard lease: 42%
With up to 319 miles of range (65kWh battery), the Hyundai Kona offers excellent practicality. Its tech-packed interior and modern design make it a popular choice for families transitioning to electric.
Skoda Enyaq
£55k salary (40% tax bracket)
- Gross sacrifice: £687/month
- Net cost: £409/month
- Saving vs standard lease: 41%
£70k salary (40% tax bracket)
- Gross sacrifice: £687/month (est.)
- Net cost: £426/month
- Saving vs standard lease: 39%
The Skoda Enyaq is one of the most spacious electric SUVs available. With up to 333 miles of range and a huge boot, it's ideal for active families. Higher earners can access this versatile SUV for under £400/month.
Why family SUVs work for salary sacrifice: The combination of practical space, 250-330 mile ranges, and mid-range pricing makes these vehicles accessible to most earners while offering genuine savings of £200-300 monthly versus traditional leasing.
Check out more family-friendly EVs at loveelectric.
Electric car prices for: Premium/Luxury EVs
Salary sacrifice makes premium electric vehicles surprisingly accessible. Higher earners can drive luxury EVs for less than the cost of mid-range cars through traditional leasing.
Tesla Model Y
£60k salary (40% tax bracket)
- Gross sacrifice: £931/month
- Net cost: £561/month
- Saving vs standard lease: 40%
£105k salary (60% ‘tax-trap’ bracket)*
- Gross sacrifice: £931/month
- Net cost: £450/month
- Saving vs standard lease: 52%
*When earnings push into £100k+ brackets, Personal Allowance tapering creates additional tax efficiency, resulting in higher percentage savings.
The Tesla Model Y is the UK's best-selling EV. With up to 331 miles of range, Supercharger access, and advanced Autopilot, it offers premium features at mid-range salary sacrifice costs. A £105k earner pays just £450/month net - less than many standard family cars.
Polestar 4
£55k salary (40% tax bracket)
- Gross sacrifice: £823/month
- Net cost: £498/month
- Saving vs standard lease: 40%
£80k salary (40% tax bracket)
- Gross sacrifice: £823/month
- Net cost: £512/month
- Saving vs standard lease: 38%
Swedish design meets Google-powered tech. The Polestar 4 offers up to 385 miles of range in Long Range spec, with a minimalist Scandinavian interior. Through salary sacrifice, it becomes accessible to higher earners at under £500/month net.
Audi Q4 e-tron
£55k salary (40% tax bracket)
- Gross sacrifice: £852/month
- Net cost: £499/month
- Saving vs standard lease: 40%
£80k salary (40% tax bracket)
- Gross sacrifice: £852/month (est.)
- Net cost: £514/month
- Saving vs standard lease: 40%
Premium German engineering with up to 326 miles of range. The Audi Q4 e-tron delivers luxury badge appeal and tech-rich interiors. Salary sacrifice makes this £50k+ vehicle cost less than £500/month for higher-rate taxpayers.
Tax-efficient luxury access: For higher earners, salary sacrifice transforms expensive vehicles into affordable monthly costs. A £80k earner saves approximately £300-400 monthly versus leasing the same car personally. That’s a saving of £10,800-14,400 over a 3-year term.
See more premium EVs available through loveelectric.
Salary Sacrifice vs Leasing vs Buying: Price Comparison
How do salary sacrifice prices stack up against other ways to get an EV? The comparison is striking.
Monthly Net Cost Comparison
Let's compare a Tesla Model 3 for a £55,000 earner (40% tax bracket):
Salary sacrifice saves £275-300 per month versus personal leasing, even before considering the value of included services.
What's Included in Salary Sacrifice Pricing
Standard leasing quotes rarely tell the full story. Here's what loveelectric's salary sacrifice prices include that you'd pay separately with traditional leasing:
✅ Fully comprehensive insurance: Usually £80-150/month extra
✅ Servicing and maintenance: £40-80/month equivalent
✅ Tyre replacement: £30-50/month equivalent
✅ Breakdown cover: £10-20/month extra
✅ Road tax: Included in the monthly cost for new EVs, but £190+ for petrol/diesel
Total value of inclusions: £160-300/month that traditional lease quotes don't account for.
When you factor in what's included, salary sacrifice's true saving versus headline lease prices is often £400-500 per month. That's why it's the fastest-growing form of car finance in the UK.
Wondering if it's worth it? Read is EV salary sacrifice worth it and explore the employee tax benefits for EV schemes.
Upfront vs Ongoing Costs
Traditional Car Finance/Leasing:
- Deposit: £500-£3,000 upfront (typically 10% of the lease cost)
- Monthly payments from net salary (after tax)
- Insurance, servicing, tyres paid separately
- Depreciation risk (if buying)
- Early termination penalties often severe
Salary Sacrifice:
- Zero deposit required
- Optional deposits available to reduce monthly cost
- Payment from gross salary (before tax) = automatic savings
- Everything included in one predictable monthly cost
- No depreciation worries, simply return the car at lease end
- Flexible early termination protection with loveelectric
Real-world example: A £55,000 earner choosing a Kia Niro EV through salary sacrifice pays around £391/month net with zero upfront cost. Leasing the same car personally would cost £655/month plus a £1,000+ deposit, plus insurance (£100/month), servicing (£50/month), and tyres - total: £900+/month.
Monthly saving: £500 | Three-year saving: £18,000
Love your journey, with loveelectric
loveelectric offers one of the UK's widest ranges of electric vehicles through salary sacrifice - from affordable city cars to premium SUVs.
What makes loveelectric different:
🚗 Widest choice of EVs: Access to 350+ dealers means you get the car you actually want, not just what's available. Browse all EVs on loveelectric.
💰 Reloved® Used EVs: The leading salary sacrifice provider offering quality-assured used electric cars. Get into an EV from £180/month net with Reloved® vehicles delivered in as little as 14 days.
⚡ Exclusive Charge Card: Save up to 60% on charging costs with our salary sacrifice Charge Card. It works at every public charger in the UK - including all Tesla Superchargers - and can even cover discounted home charging. Learn more about the loveelectric Charge Card.
📊 Transparent pricing: No hidden fees, no inflated costs. What you see is what you pay, with fixed monthly prices throughout your lease.
🛡️ Zero Risk Guarantee: Industry-leading Early Termination Protection included as standard. Optional Zero Risk Guarantee provides full coverage from day one.
🌍 B Corp certified: We're committed to making EVs accessible for everyone while pledging 10% of profits to decarbonisation initiatives.
Ready to start saving?
For employees: Check your eligibility and get a personalised quote in minutes. Check eligibility now.
Don't have loveelectric at work yet? Refer your company - it’s completely cost-neutral for them to join.
For employers: Join the UK's leading EV salary sacrifice scheme. It's completely cost-neutral for your business and one of the most valuable employee benefits you can offer. Learn more for employers.
Want to see exact prices for specific cars? Request a quote.
Looking for charging solutions? Get exclusive discounts on home chargers with the loveelectric charge card.
Discover why loveelectric is rated as the best salary sacrifice car scheme for UK employees.
Salary sacrifice electric car prices | FAQs
How much does a salary sacrifice car cost per month?
Salary sacrifice car costs vary based on your salary and the vehicle you choose, but most employees pay between £250-£700 per month (net cost) for a new electric car with everything included.
The key factor is that your net cost (what actually leaves your take-home pay) is typically 30-60% lower than the gross sacrifice amount, thanks to Income Tax and National Insurance savings. See how to get a car on salary sacrifice for step-by-step guidance.
Do salary sacrifice prices include insurance and servicing?
Yes. One of the biggest advantages of salary sacrifice is that your monthly payment includes:
✅ Fully comprehensive insurance
✅ Servicing and maintenance
✅ Tyre replacement
✅ Breakdown cover and roadside assistance
✅ Road tax
The only additional costs are:
- Charging your EV (£15-90/month depending on home vs public charging)
- Our Charge Card helps you reduce your charging costs by up to 60% - find out more here.
- Optional additions like extra named drivers on insurance
Standard lease quotes almost never include these items, which can add £150-250/month to your actual costs. When comparing salary sacrifice to traditional leasing, always factor in these inclusions, as they represent enormous hidden value.
What's the cheapest EV on salary sacrifice?
The most affordable new EVs through loveelectric's salary sacrifice scheme include:
- Dacia Spring - officially the most affordable new EV we offer that can be leased for less than £200/month.
- Renault 5 E-Tech - the Renault 5 is an absolutely gorgeous car, harking back to a golden era of the French manufacturer. Yours for less than £250/month.
- Reloved® Used EVs - Even cheaper options are available through loveelectric's used marketplace. You can access quality-assured used electric cars at a hugely discounted rate, perfect for smaller budgets or stretching to a car you otherwise thought unattainable.
Get an accurate quote using our salary sacrifice tool.
All prices correct at time of publication (October 2025) and are for a £55,000 earner, 1980 DOB, AB10 postcode.
Is salary sacrifice always cheaper than leasing?
Yes, in nearly all cases the all-in-one package that salary sacrifice offers is cheaper than personal leasing. Here's why:
Tax savings: You pay less Income Tax and save on National Insurance. This alone cuts your net cost by 30-60%.
Included extras: Insurance, servicing, tyres, and breakdown cover are bundled in. Personal leases charge these separately, adding £150-250/month.
Low BiK tax: EVs have a low Benefit-in-Kind (BiK) rate locked until the end of the decade - far lower than the tax savings you make.
Corporate discounts: Employers accessing salary sacrifice often secure better lease rates than individuals can negotiate.
The only scenarios where personal leasing might compete:
- You're a basic-rate taxpayer near minimum wage (limited tax savings)
- You already have very cheap personal insurance (rare)
- You find an exceptionally cheap or promotional personal lease deal
For 95% of employees, salary sacrifice delivers £200-500 monthly savings versus personal leasing on identical cars.
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