EV demand drives record growth in salary sacrifice
Rising demand for battery electric vehicles (BEVs) is creating record growth in salary sacrifice car scheme orders at Zenith.
The leasing firm said salary sacrifice has proven hugely popular over the last 12 months, with some customers making the largest number of orders since the launch of their schemes and an influx of employees who previously took a cash allowance.
The growth has been driven by demand for BEVs. In 2020, almost 60% of Zenith’s salary sacrifice orders were for BEVs – but this has risen to as high as 85% in one scheme, with the remaining 15% taken up by plug-in hybrid electric vehicles.
Jon Smith, relationship director at Zenith, said the significant rise in the number of BEVs across customers fleets was due to several factors, including the 0% BiK at present and the reduced rates going forwards. Other key influences include the lower mileages currently being driven and also anticipated for the future, as well as companies seeking to lower their carbon emissions on their roadmap towards carbon neutrality.
He added: “For some of our customers, removing limits on BEVs that an employee can choose within a scheme if they make a private use contribution has meant BEV ordering has materially overtaken normal ICE vehicles.”
As a result, both drivers and businesses are benefiting, thanks to BiK savings for the individual and environmental benefits for the company.
Smith also said that employees’ ability to choose BEVs through company car schemes has given them options to gain access to green vehicle mobility that a cash allowance often struggles to match.
“Looking forward, the range of BEVs is growing rapidly, and there are positive steps in expanding the charging infrastructure in the UK,” he continued. “Companies understand the benefits of company car schemes and now have more options than ever before in providing a vehicle from flexible leasing to salary sacrifice schemes.”