Ryan FowlerMore than 80% of employees using a salary sacrifice scheme through Fleet Evolution are driving their first ever new car, according to new data from the Tamworth-based fleet provider.
The firm found that 82% of participants had never previously owned a new vehicle, with most being 20% taxpayers, not higher earners, challenging the idea that salary sacrifice only benefits well-paid staff.
The company also reported that 98% of vehicles chosen through its scheme were fully electric, with just 2% of employees opting for a hybrid.
Andrew Leech, founder and managing director at Fleet Evolution, said: “There is this misconception that salary sacrifice car schemes only work for very well-paid employees.
“But that is not the reality. Salary sacrifice has made a new car affordable for many lower paid employees, and in many cases for the first time.”
He added: “Even the lower paid can benefit from a scheme’s advantages, which include all servicing, tyres, breakdown cover, road fund licence and fully comprehensive insurance.”
Leech said the recently announced Electric Car Grant of £1,500 to £3,750 would “have a dramatic impact” on the accessibility of electric vehicles through salary sacrifice schemes.
“We calculate that the ECG will make electric cars around £50 net cheaper per month. But at the moment we cannot advise customers as to which manufacturers vehicles will be included within the grant as we are as much in the dark as they are.”
Fleet Evolution’s most popular model among first-time buyers and lessees is the MG4, which Leech described as “a very attractive package with a high specification and a genuine 200-plus electric mileage”.
The company is also lobbying the Government to change current rules that restrict salary sacrifice for lower earners.
Leech said: “We would like Government to make a minor adjustment to the current rules with a caveat which states that the minimum living wage threshold remains in force, unless the employee opts for and agrees to a beneficial salary sacrifice arrangement which takes them below that level.
“That would open up electric car ownership to even more prospective employees.”
