The Electric Car Scheme has launched a new salary sacrifice product that offers vehicles on 12-month contracts.
The new subscription model 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.
The Electric Car Scheme partnered with Onto to offer subscription cars.
The Electric Car Scheme CEO and co-founder Thom Groot said: “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.”
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.
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%. The initiative operates like the Cycle to Work scheme, but for electric cars.
Onto CEO and Co-Founder Rob Jolly added: “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.”
Salary Sacrifice schemes are failing to fulfil their desired potential, according to the Association of Fleet Professionals (AFP).
The organisation said that the initiatives are being badly affected by a range of factors including highly restricted electric vehicle supply, rising lease costs and the state of the wider economy – as well as a lack of engagement by some providers.
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Matt has been an automotive journalist for eight years. As senior staff writer he is responsible for the automotive content on Fleet News and also contributes to Automotive Management. Prior to this, Matt worked in the automotive industry for 10 years.
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