When you hear about Salary Sacrifice, the discussion usually focuses on tax. And there are indeed savings to be made on that front. But Salary Sacrifice car schemes offer benefits well beyond tax – for both employees and employers.
We’ve looked at things from an employer’s perspective in a separate post. This one is for drivers. It explains the five major ways you can benefit by getting your car through Salary Sacrifice.
Of course, the decision is a personal one, depending on lifestyle and financial circumstances that are unique to each of us. But we hope that this post will serve as a useful starting point.
1. A new car for less
One of the most attractive aspects of Salary Sacrifice is the opportunity to get a nicer car than you would otherwise be able to afford, or to get that model you’ve had your eye on for less than you’d normally have to spend. Why? Because you can benefit from much bigger manufacturer discounts than you’ll find if you walk into a dealership yourself. And not only can you get a nice reduction on the sticker price, but you’ll also avoid any deposits or hidden fees you might be hit with if buying the car privately. There’s no need for a credit check, either, which might increase your options.
2. All-inclusive driving
The amount you forego from your salary each month covers not only the cost of your car but also the maintenance, servicing and insurance you’ll need to drive it. That makes budgeting so much easier, and also means you don’t need to worry about being hit with an unexpected bill when something goes wrong. That peace of mind alone can be as valuable as any of the cash savings Salary Sacrifice offers.
3. Greener motoring
We’re all rightly concerned about our carbon footprints these days, and about air pollution in our cities. Well, by giving you the chance to drive a brand-new car, Salary Sacrifice can help you tackle both. The average new petrol car emits 36% less carbon dioxide (CO2) than one just nine years old. The recent changes to the taxation of Salary Sacrifice schemes excluded ultra-low emission vehicles and Company Car Tax rates are pegged to a car’s CO2 emissions, meaning that it pays to go as green as possible. But even if an electric car isn’t right for you yet, just upgrading to a new one through Salary Sacrifice can help you be a much greener driver.
4. Lower fuel costs
A big part of the reason newer cars are greener is that they’re more fuel-efficient. Manufacturers have made great strides in fuel economy in recent years. In 2016, the average new car could travel 52 miles on a gallon of petrol, compared to just 38 miles in 2006. That means a new Salary Sacrifice car could cut your fuel costs dramatically – and mean you don’t have to spend so much time at the petrol station.
5. Maximum flexibility
Everything about Salary Sacrifice can be personalised to fit your needs as closely as possible, from which car you choose to how long you keep it for. You can decide what you want to do at the end of your initial lease: extend it, hand back the car, buy it outright or upgrade to a new one. Salary Sacrifice puts the choice in your hands.
To find out more, please contact us or call 0343 351 9073 to speak to one of our experienced fleet consultants.