- New scheme will bring massive tax-advantaged savings to the subscription electric car market for the first time in the UK.
- Employees can get 30-60% discounts on electric cars through salary sacrifice, with prices as low as £222 a month.
- Subscription offers far more flexibility than traditional leasing, with 12-month terms and packages that include charging and insurance.
- Startups now able to access salary sacrifice as subscription opens more doors.
People eager to get into an electric car without a huge upfront cost or long commitments can now get one via subscription for as little as £222 a month through their employers.
The new subscription model from The Electric Car Scheme differs from traditional leases available through salary sacrifice, which have multi-year terms and typically lock out startups by requiring that any company using the scheme have traded for two years or more.
Salary sacrifice allows employees from participating companies to pay for leases or subscriptions with their pre-tax income, meaning they can enjoy savings of between 30 and 60 per cent. The initiative operates like the Cycle to Work scheme, but for electric cars.
Businesses looking to take part in the scheme don’t have to pay a penny or handle the administration of the scheme, with the Electric Car Scheme looking after the entire process.
Once an employer signs up to the initiative, The Electric Car Scheme helps their employees select and order the best electric car for them. The employer is also supported throughout the process with payroll, admin and finance support offered by The Electric Car Scheme.
The Electric Car Scheme CEO and Co-Founder Thom Groot commented:
“More than 80% of employees in the UK want their next car to be an electric car, and it’s only right that the government rebate for electric cars is made accessible to as many people as possible. Subscriptions have been a great way for people to try driving and owning an electric car. Now The Electric Car Scheme can help more people try electric car subscriptions and make this step as affordable as possible.”
“I know there are heaps of young companies looking to do something different right now by operating far more sustainably than their competitors. Subscription-based electric cars is a great way to do this, and it won’t the company itself a penny.”
The Electric Car Scheme partnered with Onto to offer subscription cars.
Onto CEO and Co-Founder Rob Jolly commented:
“This partnership is an exciting proposition for employers and employees alike. As the shift to electric cars continues, we want to continue making electric cars accessible to all and provide customers with a cost-effective, hassle free, flexible experience that also makes them feel good about their impact on the planet.”