The typical length of a salary sacrifice car lease is between 2-4 years. During that period we know that there are many things that can change so we have broken down what is typically included during the contract period as well as what issues may arise during that period and how they can be resolved.
Although all providers are different, the typical provider includes:
1. The Vehicle and Financing
At its core, the contract provides you with a brand-new vehicle (or sometimes a high-quality used one).
- No Upfront Deposit: One of the biggest perks is the absence of a hefty initial payment. Most schemes are 0% deposit, meaning you don’t need to drain your savings to get the keys.
- Fixed Monthly Deductions: The sacrifice is a fixed amount taken from your gross pay, meaning your tax and National Insurance are calculated after this deduction, often saving you 30–60% compared to personal leasing.
2. Maintenance and Servicing
Forget about budgeting for the dreaded MOT or an annual service. Most contracts are fully maintained, covering:
- Routine Servicing: All manufacturer-scheduled service intervals
- Wear and Tear: Items like brake pads, wipers, and bulbs are typically covered
- Tyre Replacements: Many premium schemes include unlimited tire replacements for punctures or general wear.
3. Roadside Assistance and Recovery
If you break down at the side of the road, most schemes usually provide 24/7 breakdown cover as standard, which can include:
- Roadside repairs
- Home start services.
- Recovery to a local garage or your destination.
4. Tax and “The Paperwork”
One of the most underrated inclusions is the management of all the “boring bits”:
- Road Fund License (RFL)
- Fines Management: While you still have to pay the fine, the leasing company usually manages the administration of speeding or parking tickets.
- Accident Management: A dedicated team to handle the logistics if you’re involved in a collision.
For Vavoom, we like to add in an extra layer of help and service for our customers. In addition to the above, we can provide:
- Motor Insurance: this is not something that is now available from all scheme providers.
- Range of vehicles: including new & used EVs as well as Plug in hybrids (PHEV)
- Termination cover: in case any issues arise during your employment.
What’s not included in a salary sacrifice car contract?
While the list of inclusions is long, it isn’t infinite. You will still be responsible for:
- Fuel or Electricity: Essentially the only thing that can not be included is the cost to charge your vehicle after delivery. You can keep the cost down however, with an at home charger from providers like Ohme.
- Benefit-in-Kind (BiK) Tax: Since this is a company benefit, HMRC wants a small cut. For EVs, this is incredibly low (4% from April 2026), but it is a cost to keep in mind but overall you will still be saving from the reduced Tax and NIC costs.
- Excess Mileage: If you go over your agreed annual limit, there’s usually a pence-per-mile charge at the end.
What happens at the end of a salary sacrifice car contract?
Whether you’re leaving the scheme or want to renew your contract and get a new vehicle there are many options you have when it comes to ending your salary sacrifice car contract. It is worth noting that if the contract ends because you are leaving the company, the “end of contract” happens prematurely. Most modern schemes include Early Termination Protection (ETP), which covers the costs if you leave due to resignation, redundancy, or long-term sickness. Without this, your employer might be liable for a fee, which they may attempt to recover from your final salary.
