Salary sacrifice schemes continue to be a popular way for employees to enjoy the benefits of driving a brand-new car while making tax-efficient savings. With the growing focus on sustainability, electric vehicles (EVs) are leading the charge as the go-to option for savvy employees. Here are the top 10 cars to consider for salary sacrifice in 2025.
What is Salary Sacrifice Leasing?
Salary sacrifice is an arrangement between an employee and employer where the employee agrees to give up a portion of their pre-tax salary in exchange for non-cash benefits. One of the most popular uses of salary sacrifice is for leasing a car, particularly electric vehicles due to their tax efficiency and low benefit in kind. By reducing taxable income, employees can benefit from lower National Insurance and income tax contributions. Employers often support this scheme as it encourages sustainable commuting and boosts employee satisfaction. With the government incentivising the shift to electric vehicles, salary sacrifice for EVs is an attractive option for many employees.
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Let's explore ten outstanding electric vehicles that not only deliver on sustainability but also provide comfort, cutting-edge technology, and exceptional value through salary sacrifice leasing. Whether you're after a compact city runabout or a luxurious long-range cruiser, there's something for everyone on this list.
1. Nissan Ariya 160kW Evolve 63kWh
The Nissan Ariya is a striking electric vehicle that captures attention with its futuristic design and luxurious interior, which includes high-quality Nappa leather upholstery. This blend of style and sophistication makes it a perfect choice for those who desire both elegance and practicality. Powered by a 63kWh battery, the Ariya strikes an ideal balance between range and performance, offering smooth and responsive driving whether you're navigating urban streets or heading off on a weekend getaway. Its well-designed cabin ensures a comfortable ride for both the driver and passengers, with an intuitive infotainment system enhancing the overall driving experience. As of the time of writing this article, employees can secure competitive monthly salary sacrifice costs ranging from £270.00 to £175.00, depending on their salary, making the Nissan Ariya an appealing option for those seeking a high-tech, premium EV at a great value.
2. Cupra Born 170kW e-Boost V1 59kWh
The Cupra Born combines dynamic performance with cutting-edge technology, making it a standout option for those seeking a fun yet practical electric vehicle. Its e-Boost technology provides an exhilarating edge in acceleration, delivering a sporty driving experience that sets it apart from many competitors in the EV market. The sharp, eye-catching styling reflects Cupra’s bold design philosophy, while the high-tech interior is packed with advanced features that enhance both convenience and connectivity. Whether navigating city streets or cruising on the motorway, the Born offers a balanced blend of excitement and everyday usability. With current deals on the Cupra Born proving exceptionally strong, DreamLease anticipates these attractive offers will remain throughout the first quarter of 2025, making it an excellent time to consider this dynamic and forward-thinking EV for a salary sacrifice.
3. Volkswagen ID.7 210kW Match Pro 77kWh
If you're looking for a spacious and sophisticated electric vehicle that balances performance, comfort, and efficiency, the Volkswagen ID.7 is a standout option. Boasting a generous 77kWh battery, it delivers a solid range suitable for long commutes or business trips without frequent recharging stops. The roomy and thoughtfully designed cabin offers ample space for passengers and luggage, making it a practical choice for families as well as employees who spend significant time on the road. Advanced driver-assistance features enhance safety and reduce fatigue, while the refined driving dynamics provide a smooth and enjoyable ride. With its sleek styling and high-quality interior finishes, the ID.7 combines innovation with Volkswagen’s renowned attention to detail, making it an excellent choice for those who prioritise both comfort and cutting-edge technology.
4. Skoda Enyaq 210kW 85x Sportline Plus 82kWh 4x4
The Skoda Enyaq 85x Sportline Plus is a versatile and well-rounded electric SUV that excels in both performance and practicality. Equipped with a robust 4x4 drivetrain, it offers exceptional traction and stability, making it ideal for a variety of driving conditions, from urban roads to more challenging terrains. The 82kWh battery provides an impressive range, ensuring long-distance journeys are no trouble at all, while also offering efficient energy use for daily commutes. The Sportline trim enhances the vehicle's aesthetic, adding athletic styling cues that give the Enyaq a sporty, dynamic edge. With its perfect balance of performance, range, and visual appeal, the Skoda Enyaq 85x Sportline Plus is a highly attractive option for those seeking a capable and stylish electric SUV that is both practical and fun to drive.
5. Polestar 4 200kW 100kWh Long Range Single Motor Plus
The Polestar 4 stands out with its minimalist Scandinavian design, which combines sleek lines and understated elegance to create a modern and sophisticated look. Powered by a robust 200kW motor, it offers impressive performance, providing a smooth and responsive driving experience whether on long drives or city streets. The 100kWh battery delivers a remarkable driving range, ensuring that you can confidently tackle both daily commutes and longer journeys without the need for frequent recharging. Ideal for employees who appreciate a balance of efficiency, aesthetics, and high performance, the Polestar 4 offers a premium driving experience without compromising on style or practicality. Its refined design, paired with cutting-edge technology, makes it the perfect choice for those who seek an EV that performs as well as it looks.
6. Nissan Leaf 110kW Tekna 39kWh
The ever-reliable Nissan Leaf continues to be a top contender for salary sacrifice schemes, thanks to its affordability and practicality. The Tekna trim, in particular, enhances the Leaf’s appeal with a range of premium features, including advanced safety technologies, a high-quality interior, and a host of comfort upgrades. The 39kWh battery strikes a perfect balance for those with shorter commutes, offering a practical range for everyday driving while keeping costs low. With its compact design, user-friendly technology, and well-established reputation, the Nissan Leaf remains an excellent choice for those seeking a cost-effective and dependable electric vehicle, making it a smart and accessible option for salary sacrifice leasing.
7. Renault 5 90kW Evolution Urban Range 40kWh
The retro-inspired Renault 5 makes a stylish and exciting comeback, blending classic design with modern electric technology. With its compact size and a 40kWh battery, it’s the perfect choice for urban driving, offering excellent manoeuvrability and efficiency in city environments. Whether you’re navigating narrow streets or parking in tight spaces, the Renault 5 excels in practicality. Its distinctive and eye-catching design ensures you’ll turn heads wherever you go, while its electric powertrain provides a quiet and smooth driving experience. For those looking to make the most of salary sacrifice schemes, the Renault 5 presents a cost-effective option, combining style, innovation, and affordability in one attractive package.
8. Tesla Model 3 RWD
A staple in the EV market, the Tesla Model 3 continues to impress with its cutting-edge technology, exceptional performance, and access to the extensive Supercharger network, which makes long-distance travel more convenient than ever. The RWD variant offers a cost-effective way to experience the benefits of Tesla ownership, delivering impressive range and acceleration at a more accessible price point. With its sleek design, advanced features, and over-the-air software updates, the Model 3 remains a top choice for those seeking a high-tech, efficient, and enjoyable driving experience. For those considering salary sacrifice leasing, the Model 3 offers an attractive option, allowing professionals to benefit from Tesla's innovative features and strong performance while potentially reducing their monthly costs.
9. Porsche Macan 265kW 100kWh 5dr Auto
The Porsche Macan brings a perfect blend of luxury, performance, and practicality to the salary sacrifice market. Equipped with a powerful 265kW motor, it delivers thrilling driving dynamics, making every journey an exhilarating experience. The substantial 100kWh battery ensures a long-range, meaning you can enjoy both city commutes and longer drives with ease. Despite its performance capabilities, the Macan doesn't compromise on everyday practicality, offering ample space and advanced technology features for comfort and convenience. For those seeking a high-performance SUV with the benefits of salary sacrifice, the Porsche Macan presents an outstanding option, combining prestige, power, and practicality in one impressive package.
10. BMW iX 240kW xDrive40 Sport 76.6kWh 5dr Auto
The BMW iX seamlessly combines cutting-edge design with exceptional comfort, technology, and performance, setting a new standard for luxury electric vehicles. The xDrive40 Sport variant stands out with its all-wheel drive capability, offering superior traction and stability in various driving conditions. Powered by a 76.6kWh battery, it delivers impressive range and efficiency, ensuring long journeys are as comfortable as they are seamless. With a spacious and luxurious interior, advanced driver-assistance features, and a host of high-end technologies, the BMW iX is a premium option for those who want the best of both worlds: dynamic performance and supreme comfort. For those considering salary sacrifice leasing, the BMW iX offers a fantastic opportunity to experience a top-tier electric SUV with the added benefits of reduced monthly costs.
Choosing the Right Car for a Salary Sacrifice
Choosing the right car for salary sacrifice is all about striking the perfect balance between range, performance, practicality, and cost-effectiveness. Whether you’re after a compact urban vehicle or a luxurious, high-performance SUV, the models listed here cater to a wide range of preferences and requirements. Going electric with a salary sacrifice scheme offers not only tax benefits but also the opportunity to contribute to a greener, more sustainable future.
At present, full electric vehicles (EVs) attract a low 2% benefit-in-kind (BIK) rate, making them an exceptionally appealing option for those looking to reduce their tax liabilities. This lower BIK rate makes EVs a cost-effective choice, offering great value compared to traditional petrol or diesel cars. However, it’s important to note that from April 2025, the BIK rate for full EVs will increase to 3%. While this rise is a slight increase, it still remains significantly lower than the rates for petrol or diesel vehicles, ensuring that electric motoring continues to be a financially attractive option in the years to come.
By opting for an electric car through a salary sacrifice scheme, you can enjoy reduced monthly payments, lower tax costs, and the satisfaction of driving a vehicle that’s better for the environment. So, if you’re considering making the switch to an EV, now is a great time to take advantage of the benefits before the BIK rate increases in 2025. Happy driving!
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Salary Sacrifice Leasing FAQs
Salary sacrifice leasing is an arrangement where an employee agrees to give up part of their salary in exchange for a non-cash benefit, such as leasing a car. The value of the car lease is deducted from the employee’s gross salary, reducing their taxable income and potentially resulting in tax savings.
With salary sacrifice, your employer arranges for a car lease on your behalf, and the monthly cost is deducted directly from your pre-tax salary. This lowers your taxable income, meaning you pay less tax and National Insurance. The car is typically provided with insurance, servicing, and maintenance included.
The main benefits include tax savings, as your gross salary is reduced. This can also lower your National Insurance contributions. Additionally, you get access to a brand-new car with maintenance and insurance often included, all for a more affordable price than buying a car outright.
The main drawback is that your gross salary is reduced, which could affect certain benefits that depend on your salary. It’s important to weigh the benefits against these considerations.
While there may be a range of cars to choose from, your employer may have a selection of vehicles available. The type of car you can lease may depend on the salary sacrifice scheme offered by your employer, and any tax regulations affecting car emissions or benefit-in-kind taxes.
As your salary is reduced, your pension contributions may also be affected, as they are typically based on your gross salary. Some employers may adjust contributions to ensure you are not disadvantaged by the salary sacrifice arrangement.
Not all employers offer salary sacrifice leasing, and it may be available only to certain employees or in specific sectors. It’s best to check with your HR department to see if it’s an option for you.
This will depend on the terms of your salary sacrifice agreement and your employer’s policies.
The amount you can save depends on your income, the tax band you're in, and the value of the car you're leasing. High earners may see larger savings, as salary sacrifice works by reducing your taxable income.
Yes, many salary sacrifice schemes offer packages that include insurance, maintenance, tyres, and road tax as part of the lease. This can make it easier to manage the overall cost of the car, as all costs are bundled together in one monthly payment.
