Will electric vehicles be cheaper in the future? 🤔
This image is sourced from Mount Evo
The number of electric cars on the roads is rapidly increasing, with over 690,000 fully electric vehicles being registered as of the end of February 2023. Although electric cars are better for the environment compared to internal combustion cars, they are still expensive.
One of the most cost-effective ways to get into an electric car is through salary sacrifice.
What’s so different about a salary sacrifice car?
Electric car salary sacrifice is an employee benefit introduced by the government to make the switch to an electric car more affordable. You can pay through your gross pay (before tax) rather than your net pay (how you would typically pay for a car). The employer will lease the car on your behalf through The Electric Car Scheme and the employee agrees to sacrifice a portion of their salary in order to cover the cost of the lease.
As a car with The Electric Car Scheme is considered a ‘company car’ it is subject to a low benefit in kind tax which is set at 2% till 2025.
So, what cars can I salary sacrifice with The Electric Car Scheme?
You could save 30-60% on ANY electric car as we have access to the full leasing market - this means we can source the car you want from anywhere in the market. Electric vehicles are expensive, mainly due to the constant advancements in technologies, but there are some low cost cars around now with more on the way.
Several affordable electric cars, such as the Nissan Leaf, Cupra Born and the electric model of the Peugeot 208 are already available at the low price end of the electric car market. Let’s look at two of the cheapest pure electric cars to salary sacrifice, are the Fiat 500 Electric and the Renault Zoe.
Fiat 500 Electric
With features like one pedal driving, a 10.25” infotainment system and up to 199 miles of range, the Fiat 500 electric is another great car for city driving. It is the first small car equipped with Assisted Driving Level 2, a high level safety feature giving you comfort that your co-pilot has got your safety in mind.
Note: Assumes 3 year lease starts on 29/03/2023 *Prices are indicative as the best deals on the market change daily. Assumes higher rate taxpayer.
Renault Zoe
The perfect little run around for city drives or short commutes and thanks to its compact design and luxury interior it’s another electric car that offers great value for money. Although it is a great choice if you are just looking for a car to get you up to the shops and back, it does give you up to 238 miles of range if you need to do any long-distance journeys.
Note: Assumes 3 year lease starts on 29/03/2023 *Prices are indicative as the best deals on the market change daily. Assumes higher rate taxpayer.
Although these are some of the cheapest electric cars on the market right now, there are new EVs being announced all the time - and some are getting more affordable.
This month, Volkswagen announced their concept for their newest electric car - the ID. 2all. They already have several electric cars that are popular in the electric car world, the major difference with this car is that the starting price will be less than £21,000.
Volkswagen says, “the ID. 2all will be as spacious as a Golf and as inexpensive as a Polo” and will also be the first of their EVs to have front-wheel drive. It is expected to begin production in 2025.
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