Affordability just as key as sustainability for sal-sac drivers

By / 2 years ago / UK News / No Comments

Affordability is now just as key a motivator as sustainability in drivers’ salary sacrifice vehicle choices.

The popularity of more budget-friendly EV models that significantly risen over the last 12 months, according to Tusker

Research by Tusker on the most popular cars ordered in 2022 reveals that EVs remain prevalent – but drivers are increasingly turning to more affordable options amid rising living costs.

Its top five most ordered vehicles of the year had an average P11D value of just £33,500, a full £5,000 below the average price of a new car in the UK in 2022. Popular cars include the MG ZS and the Kia e-Niro, as well as the Nissan Leaf and Peugeot e-2008.

The research shows drivers are using salary sacrifice car benefit schemes to access new and environmentally friendly vehicles with guaranteed savings thanks to the combination of the salary sacrifice mechanism and continued low BiK rates through to April 2028.

Such schemes also help to eliminate unexpected expenses. Tusker drivers save an average of £290 a month, while benefiting from a fixed monthly amount inclusive of tax, insurance, breakdown cover and maintenance.

The lack of deposit required for salary sacrifice schemes can also make them more affordable than comparable PCP or PCH offerings. And rising EV prices in the second-hand market mean that salary sacrifice provides the opportunity for many people to drive electric when they might not otherwise be able to.

Paul Gilshan, Tusker’s CEO, commented: “While we expected to see the ongoing rise of EVs forming the bulk of our orderbooks in 2022, it has been the popularity of our more budget-friendly EV models that has really risen over the last 12 months. At a time when cost is a focus for consumers, salary sacrifice has really shone as a way of drivers accessing brand-new family cars in an affordable fashion.

“The last 12 months has seen an increase in the choice available to drivers who are looking for more affordable vehicles, from the MG4 EV to the Ora Funky Cat, and yet more models launching in 2023. The era of affordable mass-market family-friendly EVs is well and truly here,” added Gilshan.

Tusker data also shows the eco benefits of the prevalence of EVs on its order books. Average CO2 emissions dropped to just 19g/km in 2022, down from 34g/km in 2021. This puts the company well on course to hit its EV100 pledge of net zero by 2030. Already, every vehicle on Tusker’s fleet, whether EV or ICE, is fully carbon offset for the life of the agreement.

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.