Discover how employees can benefit from a salary sacrifice car lease.
Leasing a car through DreamLease and our Salary Sacrifice Partner SalSac is a fast, hassle-free and affordable method of leasing a brand-new electric car.
Leasing a car has become a popular choice for many people in the UK, and with good reason. One of the most attractive options for those considering leasing is through a salary sacrifice scheme. This scheme offers a range of benefits to both the employer and the employee, making it an appealing option for all parties involved. In this article, we will explore the benefits of leasing a car in the UK with salary sacrifice.
First and foremost, salary sacrifice schemes provide a tax-efficient way for employees to lease a car. Under the scheme, the cost of the car is deducted from the employee's gross salary before tax and national insurance contributions are applied. This means that the employee is effectively paying for the car with pre-tax income, resulting in significant savings on income tax and national insurance contributions.
Employees can save up to 59% with a salary sacrifice when compared to a traditional Personal Lease Hire.
For employers, salary sacrifice schemes can also be a cost-effective way to provide employees with a car benefit.
By offering a salary sacrifice scheme, employers can increase employee retention and employee satisfaction.
Another significant benefit of leasing a car through a salary sacrifice scheme is the simplicity and ease of the process. Employers typically partner with a leasing company such as DreamLease to provide the car to the employee. The leasing company will handle all aspects of the lease, including maintenance if included. This means that employees do not have to worry about any of the administrative or logistical tasks associated with owning a car, and can simply enjoy the benefits of having a vehicle.
Leasing a car through a salary sacrifice scheme can also be a great way to access a new car without having to make a large upfront payment. Most leasing agreements require a deposit, which can be a significant barrier to entry for many people. However, with a salary sacrifice scheme, the cost of the car is spread out over the entire lease term, which is typically two, three or four years. This can make it easier for employees to budget for the cost of the car, and also means that they do not have to tie up a large amount of capital in a depreciating asset.
One of the most significant advantages of leasing a car through a salary sacrifice scheme is the ability to access a wider range of vehicles than would be possible with traditional car financing. Leasing companies and dealerships often have access to a range of vehicles from various manufacturers, which means that employees can choose from a broad selection of cars. This can be especially beneficial for employees who have specific requirements, such as needing a car with a high fuel efficiency or a particular safety rating.
Finally, leasing a car through a salary sacrifice scheme can also provide peace of mind for employees. As the lease is typically for a fixed term, there are no unexpected repair costs or maintenance expenses to worry about. This can be a significant advantage for those who rely on their car for work or personal use, as it means that they can have confidence that their vehicle will be reliable and well-maintained throughout the lease term.
In conclusion, leasing a car through a salary sacrifice scheme can provide a range of benefits to both employers and employees in the UK. The tax-efficient nature of the scheme, combined with the simplicity and ease of the process, make it an attractive option for many. The ability to access a wider range of vehicles, as well as the peace of mind provided by a fixed-term lease, are additional advantages that make leasing a car through a salary sacrifice scheme a great choice for those looking to access a new vehicle.
I have been a valued customer at Dreamlease for numerous years and have leased a total of 5 vehicles through them. The quality of service they provide is truly exceptional, and their communication and the swiftness of the vehicle ordering process are incredibly efficient.
29 August 2023
Excellent, fast and accurate customer service. Would be using DreamLease in the future I will also recommend it.
10 May 2023
Excellent communication throughout the process of leasing my car.
Always helpful and respond quickly to any questions and delivered my car ahead of schedule.