Salary Sacrifice Cars: What Are The Benefits for Employees?

How does car salary sacrifice save me money?

The basic principle is a simple one.  You choose a car to be provided by your employer as part of your package. You then forego or sacrifice part of your salary to fund the vehicle. This means you can benefit from a fully managed company vehicle at a very cost efficient price which includes everything but insurance.

What are the advantages?

The advantages are numerous and vary according to the specifics of the scheme but generally the main benefits are;

  • Access to a wide range of fuel efficient vehicles at negotiated bulk discounts utilising your employer and Fleet Evolutions buying power
  • A ‘fully managed’ vehicle, all you need to do is add the fuel
  • Deductions from gross pay, saving you tax and national insurance on the payment
  • All the perks on a company car including a helpline for any issue from service booking to recovery
  • Newer vehicles are far more fuel efficient than their older counterparts, further saving you money

By sourcing vehicles this way you can typically save 30% compared to retail lease costs! Best of all you don’t have to worry about haggling on order and trade in.  We deliver the vehicle of your choice wherever you need it for a fixed low cost and collect it at the end of the term, dropping off a new one if you renew!

What are the disadvantages?

  • You will reduce your gross salary. Depending on how your employer represents this, it could have an impact on things like pension contributions and benefit. Each scheme varies.
  • You will pay tax on the benefit.  The revenue charge you P11d benefit in kind tax on the vehicle. This is reflected in the quote so you can see -  however we recommend certain vehicles to mitigate the impact of this, usually lower polluting vehicle with lower fuel bills. 
  • You're committing to a long term agreement. If you leave your employer or circumstances change depending on scheme rules you may have to take the car with you as a personal car.

What happens if my circumstances change?

Depending on the scheme your employer sets up with us the factors will vary greatly, the options vary as below;

Leaving your employer

If your employer dismisses you or makes you redundant we take the car back at any point, you may also be allowed to buy the car for the contract value. If however you leave to join another employer you'd be expected to continue with the car as a personal lease.


Usually you are expected to maintain payments at the pre sacrifice level direct to you employer, however with some schemes you may be allowed to make up any missed payments direct to us when you return to work and your employer will be paid by us.

Other life event

If something else happens such as having children or your circumstances change meaning you would prefer a different car mid term, speak with us as we can often arrange this sometimes at no penalty -  giving you even more flexibility

Salary Sacrifice

Imagine providing the most prestigious benefit to your a low cost to them…and zero cost to you!

'when you introduce a benefit for staff you want to know they are getting the best possible service and price, Fleet Evolution deliver, every time'

Salary sacrifice for cars is a win win, both for employer and employee, to find out more click below..

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