Salary sacrifice benefits optimised with EVs, says Zenith
Under the scheme, salary sacrifice drivers are protected from depreciation risks and are also offered seven days of daily rental of a fossil-fuelled vehicle, for journeys outside of the electric vehicle’s range. In addition, salary sacrifice offers drivers cost saving benefits compared to buying vehicles privately, which can be further optimised by opting for electric vehicles.
As an example, the BMW i3 is being priced on Zenith’s salary sacrifice car schemes from £310 (net monthly cost) for an all-inclusive package on a 36-month, 10,000 miles per annum basis. An extra £29 per month will allow drivers to have the car with a range extender, which increases the range from up to 100 miles to up to 186 miles, whilst drivers can also benefit from seven days daily rental per year for a fossil fuelled car, which can be used for longer journeys where an electric vehicle may not be suitable.
Zenith adds that whole-life cost analysis, showing the true cost of ownership of a car over its life, illustrates that the BMW i3 can cost £189 per month less than a BMW 118d Sport based on a 36-month/10,000 miles per annum basis (see table). This includes an indicative cost for diesel and electricity and the seven days’ rental factored in with the i3 option.
Ian Hughes, Zenith’s commercial director, commented: ‘We have already had a lot of interest in electric vehicles on our schemes. Given that an estimated 93% of journeys carried out are less than 25 miles in length, an electric vehicle would suit a high proportion of salary sacrifice drivers who are often general commuters. With the 7 days rental included for a fossil fuelled car it provides an extremely viable and cost effective transport solution for our drivers and we expect to see take up of electric vehicle accelerate significantly throughout the next 12 months.’
Whole life cost comparison of a BMW 118d Sport and a BMW i3 through salary sacrifice
36 months, 10,000 miles per annum selection, 40% tax payer
BMW 118d Sport Auto
Monthly Gross Salary Sacrifice
Monthly BiK (40% tax rate)
Monthly National Insurance and Income Tax Savings
Net Monthly Cost (40% tax rate)
Monthly Private Fuel Cost
Savings – up to £189 per month
*electricity has been calculated at 2p per mile
**includes insurance, maintenance, road tax, tyre and windscreen cover, accident management and breakdown recovery