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EV Blog: Which is cheaper, salary sacrifice or personal lease?

Wondering whether it’s cheaper to take out a personal lease or use a salary exchange scheme? Whether you’re an employer or employee, this article is worth a read!

When it comes to leasing, most people assume that petrol or diesel vehicles are always going to be cheaper than electric or hybrid vehicles. This may be true in some cases, but when a vehicle is leased through a salary exchange scheme, it’s monthly costs can become significantly lower than a petrol car on a personal lease.

We have gathered some information to demonstrate how the unseen costs in a personal lease can actually work out more costly than leasing an ultra-low emission vehicle from a salary exchange scheme.

When leasing a new car, you may not initially think about the additional expenses that come with it such as insurance, tyres, MOTs, maintenance, running costs or tax. With a personal lease, it’s your responsibility to budget and organise all of these things so that your vehicle is safe to drive. With a salary exchange scheme, these factors are included in your overall monthly price. Let’s take a closer look…

We have illustrated an example which shows the difference in the monthly costs of a Corsa 1.2 SE Edition petrol car on a personal lease compared to the Corse-e Premium electric version on a salary exchange scheme:

Corsa 1.2 SE Edition – Petrol

(Octopus, 2022)

Corsa-e SE Premium– Electric

(Octopus, 2022)

 

The Corsa 1.2 SE Edition works out at £399.52 per month whilst the electric alternative on a salary exchange scheme equates to £330.08 which is significantly cheaper, and it’s hassle free! A salary exchange scheme takes away the stress of generating multiple insurance quotes, organising MOTs and servicing, arranging breakdown cover, it’s all included in the overall price you pay each month with no unexpected costs.

Before you lease your next car, check with your employer if they could offer you a salary exchange scheme. If you’re an employer, then start to think about introducing the scheme to your staff and even yourself!

For any questions, advice or support regarding anything EV, contact us!

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