Salary Sacrifice Scheme Frequently Asked Questions

What is Pendragon Let's Drive?

Pendragon Let's Drive is an Optional Remuneration Arrangement (formerly known as a salary sacrifice scheme) – you get a new car at a discounted rate and have a monthly fee deducted from your salary before tax and national insurance, which could save you money.

Will I pay company car tax?

A Pendragon Let's Drive vehicle is subject to company car tax, also known as Benefit-in-Kind. HMRC will charge you either the Benefit-In-Kind on the vehicle or will tax you on the finance rental (excluding insurance and maintenance) deducted from your salary, whichever is the greater of the two.

Provided you choose a car that doesn’t emit a large amount of CO2, the savings you make on a SimplyDriveIt vehicle more than make up for this.

What is included in the Pendragon Let's Drive Monthly Fee?

The convenient monthly payment includes:

  • The cost of the vehicle
  • Fully comprehensive insurance
  • Breakdown cover and roadside assistance
  • Servicing, MOT, Glass and Tyres – subject to Fair Wear and Tear guidelines
  • GAP insurance
  • Accident Management
  • Road Fund License
  • Driver Delivery Pack

What are the main benefits of Pendragon Let's Drive?

You can drive a better car for your money. By choosing a lower CO2 emitting car, you will save more and there is no large payment up front.

Who is the scheme open to?

Permanent employees between the ages of 18 and 75. We recommend that employees must have completed at least 12 months service, have a clean work record and are not planning on retiring during the life of the contract agreement or should not consider taking out a salary sacrifice contract unless they plan to stay with the employer for the foreseeable future.

How long is the contract?

You can choose either a 24 or 36 month contract.

Why should I consider salary sacrifice as a mean of acquiring a car?

By ‘sacrificing’ gross salary before taxation, you can save as much as 30% on the price of a new car when compared with other methods of funding a car.

Are there any fees or other payments involved?

No. Pendragon Let's Drive has no set-up fees and no upfront payments.

Is there a delivery charge?

No. Your car will be delivered free of charge to any UK address, either home or business.

What happens when the car needs a service or maintenance?

The vehicle is provided under a full maintenance scheme, which includes all servicing, batteries, exhausts and tyres under normal wear and tear conditions. Exclusions include glass (other than light bulbs) and driver damage. When the car is delivered, it will include a Driver Information pack, which will detail the single contact number, you will need to call to manage any of your maintenance requirements.

Is there a cut-off date for entering an agreement?

No, employees can join at any time in the future. As with all major purchases and credit agreements, you are advised to carefully consider all aspects of the scheme before entering into the agreement.

What happens if I decide to leave the company?

If you resign, take early retirement, or are dismissed for cause by your employer prior to the expiry date of the vehicle contract, the cost of returning the vehicle is:

  • 4 month’s rentals in months 1-6
  • 3 month’s rentals in months 7-12
  • 2 month’s rentals in year 2
  • 1 month’s rentals in year 3

What happens if I go on maternity leave?

When your salary drops to the level where payments can no longer be deducted the scheme will cover the monthly payments for up to 9 months. Please refer to your company maternity policy for more details.

What would happen if I went on long term sick?

When your salary drops to the level where payments can no longer be deducted the scheme will cover the monthly payments for up to 9 months. Please refer to your company’s sickness policy for more details.

What happen if I lose my licence on medical grounds?

The car can be returned with no early termination penalties.

What happens if my mileage circumstances increase?

Salary sacrifice deductions cannot be changed. Your quotation will show a pence-per-mile excess charge and you will be able to calculate how much this will be to enable you to budget for this cost at the end of the contract.

Do I make the same payment throughout the life of the contract?

Unless the government announces any changes to legislation your payments will remain the same.

What is included in the car insurance?

The insurance policy provides fully comprehensive cover. Full details can be found in the insurance KeyFacts document which you can download at quotation stage. The KeyFacts also includes eligibility around previous driving conviction.

Can I arrange my own insurance?

No. The scheme comes with comprehensive insurance cover. You are able to add additional drivers to the insurance between the ages of 18 and 75.

Can my partner/spouse drive the car and be covered for business use?

Cars can be used for your Employers business use only. Other business use can be agreed on a case by case basis for your partner/spouse.

Does my no claims history count and can I transfer the no claims once the scheme is finished?


Are there any insurance excesses?


What happens at the end of the contract?

You can either return the vehicle or purchase the vehicle at its current market value. Pendragon Vehicle Management will contact you 3 months before the end of your contract to discuss these options with you.

Do you need to see my driving licence?

Yes, we will not process your order until we have electronically checked your driving licence. At the point of vehicle order you will be required to complete a permission form to allow this to commence.