Employers can now offer subscription electric cars to new or existing employees through salary sacrifice – not just multi-year leases.
This costs the employers themselves nothing but lets employees pay for cars via their pre-tax income, meaning a brand new electric car could cost the employee as little as £222 a month
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.
Electric Car Scheme CEO and Co-Founder Thom Groot said the scheme would help the Government rebate get to more people.
“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,” Groot said.
“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 said the partnership would help make electric cars accessible for as many people as possible.
“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.”