Joining a salary sacrifice scheme is easy once your employer has signed up for it, whether it be for pensions, cycle to work or cars. For a salary sacrifice car scheme, your employer must join the scheme with a provider like us, and then you must be eligible to join.
Once you have successfully joined the scheme you will have many questions, such as finding out which cars are available, to when do you get the vehicle. We’ve listed the common questions below:
How can I find out which salary sacrifice cars are available?
Most of the vehicles on the market will be available to you, your employer has the ability to remove certain makes or models if they choose. For Vavoom, you will have access to your company’s personalised portal, and every car on the portal will be available to you within reason. The only personal limitation you may face will be if the car you choose takes your salary below national minimum wage.
How much could I save by joining the salary sacrifice car scheme?
Initial key savings would be on your tax & national insurance, taking the fee of the vehicle out of your salary before you pay taxes meaning you will only be taxed on what you salary states after the lease fee comes out.
| With Salary Sacrifice | Without Salary Sacrifice | ||
| Salary | £2,500.00 | Salary | £2,500.00 |
| Sacrifice | £523.28 | Income Tax | £290.50 |
| Sacrifice | £1,976.72 | NIC Employee | £116.15 |
| Income Tax | £201.98 | Total Deductions | £406.66 |
| NIC Employee | £74.30 | Net Pay | £2,093.34 |
| Total Deductions | £276.28 | NIC Employer | £321.45 |
| Net Pay | £1,700.44 | ||
| NIC Employer | £233.96 | Total Tax Saving | £130.38 |
You’ll be able to choose your ideal electric car from a wide range of models, you will be provided with indicative salary sacrifice quotations so that you can compare the features of each car and discover the savings they offer.
What will be included with a salary sacrifice car?
In addition to your brand new electric car, the Scheme includes servicing, maintenance, fully comprehensive motor insurance and roadside assistance depending on the options that your employer signed up to.
Can I choose colours and add-ons?
Where an early termination charge would not apply, please note you may still be liable for any excess mileage or damage charges relating to your use of the car.
What is an early termination charge?
Yes. Choice of colour and options made available by your chosen manufacturer are permissible. Choosing additional options is likely to increase the amount of salary you sacrifice each month.
After your car is delivered you should not alter or modify the car in any way without seeking prior approval from your provider.
Unfortunately, due to regulations we can not go into the details around this, however if you wish to know more about early termination you can find articles online.
How do I order my chosen car?
Once you’re ready to order a car you should contact your account manager from your provider to discuss your precise requirements, including any options you might wish to add and the mileage you think you’ll undertake each year. For Vavoom, you will have a dedicated account manager that will work with you to find the vehicle & options that are right for you.
Once you’ve agreed, you’ll be asked to sign your salary sacrifice agreement and forward it to your employer for countersignature.
Authorisation to order the car will be sought from your employer, and once your employer has countersigned and approved the order of your car, your provider will place the order with the dealer and let you know the estimated delivery date.
Could my employer block my order?
If the salary sacrifice you’ll have to pay for your chosen car would reduce your pay below the National Living/Minimum Wage, your employer would be obliged not to approve your order.
Likewise, if the car you’ve selected falls outside the Scheme policy parameters determined by your employer, they may not authorise your proposed order and ask you to select a more appropriate car.
Can I cancel my order once it’s been placed?
If you wish to withdraw your application to join the Scheme after your car has been ordered you may be liable to a cancellation charge if unavoidable costs or losses are incurred, such as dealer charges.
How long must I keep a salary sacrifice car?
Your contract will be for a fixed term of 1-4 years. If you wish to terminate the contract early, an early termination charge may apply.
How can Vavoom help?
As mentioned above, as a salary sacrifice provider we help employers and employees with providing salary sacrifice schemes for Electric Vehicles. Our dedicated team is on hand to answer all questions whether you are an employer looking to introduce a scheme or an employee to be part of the scheme. We can help you.
Contact us if you want to get started on your new salary sacrifice scheme.
