Over 80% of the cars sourced by Fleet Evolution go to employees who have never had a brand new car before – a statistic that demonstrates salary sacrifice schemes can make new cars significantly more affordable for drivers. Fleet Evolution sources brand new vehicles for use in salary sacrifice car schemes all over the country, and their research has shown that the vast majority of people taking up these schemes wouldn’t ordinarily be able to afford a brand new car. Instead of opting for second-hand models, employees can now opt into a salary sacrifice scheme and enjoy the experience of a brand new car at their disposal.
Andrew Leech, Managing Director of Fleet Evolution, says, “Salary sacrifice schemes have a multitude of financial benefits, for employers and employees – but one of the most striking things we’ve noticed is that many of those taking up the schemes have never owned a brand new car before. With our help, businesses can set up salary sacrifice schemes which are tax efficient and beneficial for all parties – so their team can enjoy the experience of driving, and eventually owning, a new vehicle.”
The number of new cars on the road has increased sharply recently – sales of new vehicles hit a ten-year high last year, with 2.47m new cars registered in 2014 alone. Car sales were hit badly during the economic downturn which began in 2008, and second-hand cars were the go-to choice but factors like growing consumer confidence and an increasing number of salary sacrifice schemes have seen sales of new models soar.
Interestingly, it was electric cars which saw the biggest growth in 2014, with sales quadrupling year-on-year. Electric cars are seen as the future of salary sacrifice schemes, with the structure of the schemes offering the most benefits for those who opt for the most efficient, eco-friendly cars. Many of those on salary sacrifice schemes would not ordinarily be able to afford an electric or hybrid car, but the schemes are allowing them to become owners of an efficient vehicle in a tax-efficient way.
Mr Leech adds, “Salary sacrifice schemes are a great way for drivers to obtain a car which they wouldn’t usually choose. Whether it’s a more expensive model that they wouldn’t be able to buy upfront, or whether it’s an electric or hybrid car that they wouldn’t usually go for, the schemes allow drivers a much broader choice when it comes to picking their ideal vehicle.”
Tags : electric cars, hybrid cars, salary sacrifice, Salary Sacrifice Car Scheme, salary sacrifice electric cars