LoveElectric, a leading EV salary sacrifice broker, has recently introduced a groundbreaking ‘zero-risk guarantee’ for employers, aiming to drive more participation in these schemes as the affordability of new and used electric vehicles continues to improve. This move comes at a time when the UK’s salary sacrifice market, known as ‘salsac,’ is experiencing rapid growth, allowing employees to lease a car through their employer and pay for it using their pre-tax salary.
One of the key benefits of the salsac scheme is the tax advantages it offers for low-emission vehicles, with cars emitting 75g/km of CO2 or less, including plug-in vehicles, qualifying for lower benefit-in-kind (BIK) tax rates. LoveElectric has reported a significant cost-saving of up to 60% compared to private leasing, making it an attractive option for both employees and employers looking to promote sustainability.
According to the British Vehicle Rental and Leasing Association (BVRLA), the combined salary sacrifice fleet of its members grew by 51% last year, with electric vehicles accounting for 87% of new deliveries. With the government’s commitment to BIK incentives until 2030 and the anticipated price reduction of EVs, LoveElectric’s CEO, Steve Tigar, foresees a promising future for the industry.
The affordability of electric vehicles has significantly improved, with models like the Vauxhall Frontera reaching price parity with their internal combustion engine counterparts. LoveElectric’s ‘Reloved’ scheme for used electric vehicles has seen a surge in demand, with the company reducing the salary threshold for eligibility to around £27,000 for used vehicles compared to £36,000 for new ones.
The introduction of the ‘zero-risk guarantee’ by LoveElectric is a strategic move to address another barrier to adoption by offering protection to businesses against early termination fees in case of employee resignations, redundancies, or long-term leaves. This optional guarantee, which applies from day one and covers both new and used vehicles, provides peace of mind to employers and further enhances the appeal of the salary sacrifice scheme.
Tigar emphasized the importance of providing robust early termination protection to customers, highlighting the positive impact it has had on businesses considering implementing the scheme. The focus on customer satisfaction and risk mitigation sets LoveElectric apart as a reliable and forward-thinking partner in the evolving landscape of EV salary sacrifice schemes.
In conclusion, LoveElectric’s innovative approach to promoting EV adoption through the ‘zero-risk guarantee’ showcases their commitment to driving sustainability and accessibility in the electric vehicle market. With the increasing availability and affordability of electric vehicles, the future looks bright for both employees and employers looking to embrace cleaner and more cost-effective transportation options.
