A 280% growth has been seen by Arval UK in the number of vehicles it operates under its Ignition salary sacrifice product during the last 12 months, with the top 15 cars chosen now all electric vehicles.
Richard Cox, consultant at the fleet and mobility specialist, explained that the growth showed both the burgeoning popularity of “sal-sac” and how quickly EV adoption could happen in the “right conditions” – with an appropriate combination of supportive tax incentives, increased vehicle choice and firm employer commitment.
“The introduction of zero and very low rate benefit-in-kind taxation rates on EVs has made these schemes very attractive and led to this rapid expansion in Ignition. The latest, most advanced and environmentally-friendly cars can be offered to employees at extremely attractive monthly rates, supported by more choice in the electric car marketplace which means that there’s an option for every budget and lifestyle need.”
He added, “We are finding that salary sacrifice fits not just the needs of people who would like a company car and do not currently qualify for one, but also employees who have taken a cash allowance option and are looking for alternative car provision.
“The level of interest being shown across companies with which we are working is ever-growing. These schemes provide a range of genuine advantages to employers and employees, with no real downsides or compromises.”