Affordable Salary Sacrifice Car Schemes in a Costly World

At a time when the cost of living continues to soar, we’re finding that more and more employers are looking at innovative ways to help their employees with more than just their salary. Benefits have long been a way of attracting and retaining staff, but in a cost of living crisis, providing car benefit schemes can be a great way to make salaries go further, particularly when fuel is leading price rises.

Electric Vehicle (EV) salary sacrifice schemes are not a new solution but one which is being seen as a great way to offer employees an affordable way to drive electric. Tusker first started offering salary sacrifice schemes in 2008, with our first EV on the scheme in 2011, but there has been a fast transition in the past 4 years.

How Tusker can help

As it always has done, the Tusker car scheme offers employees a more affordable option to manage their outgoings, providing a fixed-cost, inclusive solution. The bonus now, is that with 2/3rds of people able to charge at home* and take advantage of cheaper charging rates for their electricity, drivers are reporting savings of £1000 a year in fuel alone.**

The fuel savings are in addition to the savings that employees are able to make using the salary sacrifice scheme. On average, drivers on the Tusker scheme saved more than £320 a month in 2023 – savings which are not available via traditional leasing options, and savings which make cars on the Tusker scheme affordable for a lot of employees.

As Benefit in Kind is a known cost until 2028, the salary sacrifice scheme from Tusker enables employees to remove all of the unknowns of price rises for their cars. As their costs are fixed for the car, and it comes complete with insurance, servicing, maintenance, replacement tyres and breakdown cover, it allows individuals to budget more effectively.

Savings

The adoption of EVs also provides cost savings for employers, who are often able to redirect their savings into other projects or back into the organisation. We see this a lot in both the public and private sectors, where employers are either able to make the scheme even more affordable by transferring part of their savings back to the employee, or they are able to fund other projects – like in a London school recently, where they’re putting £100,000 back into education for children over the course of 3 years.

It can be a win-win for employers, as the scheme also demonstrates the company’s commitment to reducing their carbon footprint and supporting the transition to cleaner transport solutions.

*source British Gas

** source: Tusker data