Nearly nine out of ten Arval salary sacrifice cars now EVs
28 April 2021
Author: Sean Keywood
Leasing company Arval says 89% of cars leased from it on salary sacrifice schemes are now EVs, compared with 39% two years ago.
The firm says that in the same time period, the total number of cars provided by its Arval Ignition salary sacrifice scheme has gone up by 252%.
Arval UK consultant Richard Cox said that government incentives were the main reason behind the growth in EVs.
He said: "The single biggest reason behind the rise of the EV-centred salary sacrifice scheme in the last couple of years has been the introduction of zero and very low rate BIK taxation rates, meaning that the latest, most advanced and environmentally-friendly cars can be offered to employees at extremely attractive monthly rates.
"In these circumstances, Ignition fits not just the needs of people who would like a company car and do not currently qualify for one, but also often employees who have taken a cash allowance option and are looking for alternative car provision.
"The level of interest being shown across companies we are working with is very high indeed and shows every sign of growing further as general awareness and acceptance of zero-emission EVs continues."
Cox said it was notable that employers had been keen to ensure their programmes were not interrupted by the Covid-19 pandemic, with negotiations and implementations of schemes continuing despite successive lockdowns - and salary sacrifice cars a potentially attractive option for employees wanting to avoid public transport.
He added: "We expect that the interest we are currently seeing to continue into the remainder of 2021 and well beyond. While BIK rates on EVs remain low, these schemes are extremely viable."