Salary Sacrifice Car Scheme

With our salary sacrifice car deals, employees can enjoy the benefit of driving a brand-new car all while making significant tax savings

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What is a salary sacrifice car scheme?

Salary sacrifice for cars is a way for a company's employees to lease a new car, whilst saving money on tax during the process.

In essence, employers lease a car of an employee's choice on their behalf, with a monthly payment taken from their gross salary.

Because the monthly payment for a vehicle is taken before tax is collected from their income, it's a great way for employees to save money on a new car and employers to enhance their benefits package and make additional savings.


How does salary sacrifice work?

Employees sacrifice some of their salary in order to gain a brand-new car. There are no credit checks required on the driver and no large upfront payment on the vehicle.

The all-inclusive fixed monthly payment includes insurance, maintenance (and more) and is deducted from their salary before tax, all the employee has to worry about is fuel.

A salary sacrifice vehicle is subject to company car tax, also known as Benefit-in-Kind (BiK). This is paid before tax and national insurance, meaning there are plenty of savings to be had, especially for those opting for an electric vehicle.

Volkswagen Car

But what are the benefits?

The salary sacrifice scheme offers a compelling package of benefits for employees that aren’t readily available for those buying or leasing a vehicle through traditional means.

By ‘sacrificing’ part of your salary, you can pay for your lease agreement pre-tax, allowing you to make significant savings on your monthly payments. Our vehicle salary sacrifice scheme integrates the costs of maintenance and insurance too, making for a more convenient experience.

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Vehicle salary sacrifice schemes are often a part of comprehensive benefits packages within a wide variety of companies and are a proven method of attracting and retaining the best talent within your industry.

Your business will also benefit from enhanced National Insurance savings should your employees choose to make the most of the scheme because there's no employer National Insurance contribution to pay on the portion of sacrificed salary.

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What's included as part of our salary sacrifice scheme?

A vehicle salary sacrifice scheme you can trust

At Pendragon Vehicle Management, we have years of experience in dealing with complex business requirements and are ready to ensure the car salary sacrifice scheme you choose is perfectly-suited to your company.

Working with our diverse range of clients, we’re proud to play a part in improving company culture and business success across the United Kingdom.

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Contribute to a cleaner future

Our experienced associates can also provide support to those interested in hybrid and electric salary sacrifice options. With enhanced savings on the likes of fuel and Benefit-in-Kind tax, leasing a zero-emissions vehicle will help us to build a better future. We can also advise on suitable solutions to ensure your salary sacrifice scheme meets your company’s sustainability goals.


Electric Salary Sacrifice Scheme

Ready to get started?

Interested in learning how Pendragon Vehicle Management can introduce a vehicle salary sacrifice scheme into your company? Our friendly associates are on-hand to provide you with all the information you need.


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Frequently Asked Questions

Do employees own the car in a car salary sacrifice scheme?

No, employees won't own any car leased through the salary sacrifice scheme. As part of the scheme, businesses are essentially leasing the car on behalf of their employee(s), helping them to save money when paying for the car on a monthly basis. However, they can buy the car for a pre-agreed sum after the agreement.

What's the difference between a company car and a salary sacrifice car?

A car leased through salary sacrifice is offered as a perk for employees by their employers, since it gives them access to a new car whilst saving money, A company car is often used as a tool to serve a purpose, and is owned by the company.

Are electric cars available through a salary sacrifice car scheme?

A variety of electric and hybrid cars are available through the salary sacrifice car scheme. Not only can employees save money on leasing a new vehicle, they can enjoy the benefits that come with electric and hybrid vehicles, such as reduced running costs.