Salary Sacrifice

Grey fleet drivers contribute towards Tusker new car orders falling below 50g/km for the first time

Tusker has seen the average CO2 emission level of its new car orders fall by 15.5% from 59.0g/km to 49.8g/km in just the first three months of 2021 such is the speed of take up of hybrid and electric cars by its customers.

Over two thirds (69%) of its salary sacrifice car benefits new car order bank at the end of March were for electric and plug-in hybrid cars split 42%/27%. In the same period in 2019 plug-in hybrids and EVs comprised just 14% and 2% respectively which puts company and driver ambitions to reduce emissions into perspective.

During the pandemic, Tusker has seen an increase in take up of salary sacrifice cars across the board, from Nurses in Nottingham to Accountants in Aberdeen. This suggests companies are successfully getting their grey car fleet population into new cars which are safer and more reliable at a time when more drivers are also boycotting public transport to adhere to social distancing rules.

Tusker has particularly seen a move to salary sacrifice in the public sector during the pandemic from the likes of community nurses who need to travel for their work but who do not necessarily have business use insurance cover.

62% of drivers ordering cars in March 2021 were 20% taxpayers, a rise from 58% in March 2020. The average P11D value of cars being added to the Tusker fleet have reduced accordingly from an average of £39,029 a year ago to £38,343 now.

“The speed at which companies and drivers are embracing hybrid and electric cars is phenomenal, and it’s great to see our order bank fall below 50g/km for the first time,” said Paul Gilshan, Tusker’s CEO.

“It’s also a very positive trend to see grey fleet drivers are switching to a new EV or hybrid on salary sacrifice, providing extra peace of mind for companies that their grey fleet drivers are safely behind the wheel of a fully maintained and insured new electric car,” he added.

At the end of Q1 2021, over 25% of Tusker’s 19,000 vehicles were EVs compared with 8.5% at the same period in 2020.

Tusker is practising what it preaches when it comes to emission reduction with its own 50-strong internal fleet now sitting at an average CO2 emission value of just 29.4g/km. It has received just two orders for internal combustion engine cars since 2019.

“It is perfectly feasible that most of our fleet could be fully hybrid and electric in the next two to three years. The recent introduction of a 1% benefit in kind tax rate for EVs has further supported the drive to electric vehicles.

“Companies are very focussed on improving their environmental credentials alongside meeting all of their duty of care responsibilities. Salary sacrifice supports both these strategies, said Gilshan.

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