Salary Sacrifice Car Scheme

Allow employees to lease an EV by sacrificing a portion of their pre-tax salary.

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The salary sacrifice car scheme has emerged as one of the most powerful tools for both employers and employees. We specialise in bridging the gap between high-end automotive technology and tax-efficient financial planning.

Whether you are an employer looking to bolster your recruitment package or an employee dreaming of a brand-new electric vehicle (EV) without the retail price tag, a salary sacrifice car represents the ultimate win-win scenario.

What is a Salary Sacrifice Car Scheme?

At its simplest, a salary sacrifice car scheme is an agreement between an employer and an employee. The employee agrees to “sacrifice” a portion of their gross monthly salary (their pay before income tax and National Insurance are deducted) in exchange for a non-cash benefit, in this case, a brand-new, fully maintained, and insured car.

Because the deduction is taken from your gross pay, you only pay tax and National Insurance on the remaining amount. This creates a significant tax saving, often making the cost of the vehicle 30% to 60% cheaper than a traditional personal lease.

How does it work?

Navigating the world of automotive finance can be daunting, but Vavoom simplifies the journey. Here is how the typical lifecycle of a salary sacrifice car works:

Salary Sacrifice for Employers

An attractive, simple benefit for employees:

Complement existing benefits without increasing costs
Attract and retain top talent
NIC savings
Simple, fully supported scheme set up
Reduces carbon footprint
Dedicated account manager

Salary Sacrifice for Employees

The most cost-effective way to access brand-new low-emission vehicles:

30-60% savings
All-inclusive vehicle management
Low or zero-emission vehicles
Comprehensive insurance
No deposit or credit check
Support on hand

Why Vavoom?

At Vavoom, we don’t just provide cars; we provide a complete vehicle management solution. With over 20 years of experience in fleet management, our team offers:

A Digital-First Experience: Our market-leading online portal allows you to compare models, calculate exact savings, and track your order with a few clicks.
Expert Advice: Our director led one-to-one approach gives you personalised support to ensure the car you choose fits your lifestyle and tax bracket.
Tailored Portals: We build bespoke dashboards for our corporate partners, making the administration of the salary sacrifice car scheme virtually effortless for HR and Finance departments.

Not the decision maker?

You can now refer your employer to Vavoom and we will get in touch and get you started on your new journey with a greener, more cost efficient vehicle.

Common FAQs: What You Need to Know

What is fleet management?

The management of a business fleet to ensure it is fully compliant with the law as well as fully efficient, to help a business be more cost-effective. This service can include a range of services from Procurement, Maintenance, and Risk & Compliance management, to Accident management and driver communications

What is a fleet management company?

A fleet management company looks after the fleet of a business as a subcontractor. Putting the needs and wants of the business first, but also ensuring safety and compliance for the drivers and the business. Some fleet management companies are brokers, meaning they can use panel funding and multiple dealers to get the best deal when procuring vehicles

How does a fleet management system work?

A fleet management system is a digital software that allows tracking the progression of vehicles within a business’s fleet. It gives real-time reporting on the vehicles to see those that are the most efficient, as well as those that are lacking, to allow those in charge of the fleet to make the best-informed decisions on that fleet.

What is fleet maintenance management?

In short, it is the systematic process of planning, coordinating, and executing the upkeep, repair, and inspection of company vehicles to ensure maximum safety and reliability. Ensuring that there is minimal downtime and maximum efficiency to the business, all vehicles need to be maintained to an appropriate and legal standard.

How to manage a fleet of vehicles?

Some organisations manage their fleet with internal resources. Many businesses we speak to have someone in charge of the fleet who has a dual role, such as procurement or HR. Hiring a company, as a trusted partner, to manage your vehicle means the fleet will be fully compliant, and the business will have more time to concentrate on other priorities.

How big does a fleet need to be?

No matter how big your fleet is, whether it is 5 vehicles or 500, you need to have full transparency of your fleet operation, not only to ensure that the fleet is efficient but to ensure that you are compliant with the law. The vehicles need to be fully maintained and insured. At the same time, your drivers need to operate compliantly with regular training to ensure road safety.