What is a salary sacrifice scheme?
A salary sacrifice scheme, sometimes known as an employee car scheme, allows you to lease a brand-new car by paying for it with your pre-taxed annual salary.
Essentially, the company you work for is leasing a new car on your behalf, making it an excellent benefit to have access to.
The monthly payment for your chosen vehicle is taken before tax is collected from your income, meaning you save money in the process.
Once you select a car, your lease will last for an agreed period of time, which is typically three years. At the end, you either hand the vehicle back or buy it outright for a pre-agreed sum.
Is salary sacrifice worth it?
Leasing a car through our salary sacrifice car scheme brings a host of benefits, helping to save you money.
New Car Savings
You will get access to a new car every three years, usually at a lower cost than other methods of buying a vehicle.
No Credit Checks
No deposit or credit checks are carried out, meaning there is no impact on your credit score.
Maintenance and Repairs
Servicing and general maintenance are included with all cars leased through the scheme, saving you money during your agreement.
Broad Vehicle Choice
Our extensive dealer network gives us access to a broad range of cars that you can choose from.
What's included as part of your lease?
Various costs are included as part of your monthly payment when leasing a car through salary sacrifice, including:
- Insurance
- Maintenance and repair
- MOT
- Servicing
- Breakdown cover
- Tyres
- Vehicle excise duty (a.k.a. road tax)
- Accident management
Already on the scheme?
If you already lease a car through our salary sacrifice scheme, then you can log in and view your details using our portal.
Driver Portal Login
Frequently Asked Questions
Salary sacrifice schemes are worth it for a variety of reasons. They save you money on leasing a new car, which is ideal if you're in the market for a new car and want to make the most of your budget. Not only that, but you get maintenance and breakdown cover included within your monthly payment, making it a hassle-free experience.
No, you won't own any car leased through the salary sacrifice scheme. As part of the scheme, businesses are essentially leasing the car on your behalf, helping you to save money when paying for the car on a monthly basis. However, there will be the option to buy the car at the end of your agreement for an agreed sum.
Whether a car leased through salary sacrifice will impact your pension will depend on the type of pension you have. If you have a defined contribution pension scheme, then your pension contribution is calculated before your salary sacrifice has been applied, meaning it's unlikely to have an impact on your pension contribution, and therefore the benefits payable during retirement.
However, the impact on your pension can be bigger if you participate in a defined benefit pension scheme if the salary sacrifice has not been approved by the government. This is because, in a defined pension benefit scheme, your pension contributions are based on your salary after any deductions (such as salary sacrifice).
There's no upfront cost when leasing a car through the salary sacrifice scheme. You pay an agreed monthly sum for the duration of the agreement, with no deposit required.
A variety of electric and hybrid cars are available through the salary sacrifice car scheme. Because of the reduced running costs associated with these vehicles, it represents a great opportunity to save more money when leasing a new car.
No, salary sacrifice will not impact your credit score since the lease is considered a business contract hire, and not a personal contract hire.
