Salary sacrifice (sal/sac) is increasing in popularity among companies as a way of giving employees a cost-effective way of accessing a low emissions car. But a high uptake is not always guaranteed. We look at how to make a scheme work for both businesses and staff...

Sal/sac works in a different way to traditional car funding – both for companies and retail customers.

The schemes enable businesses to provide employees with access to new vehicles by ‘sacrificing’ some of their pre-tax salary each month over a fixed term.

As well as leasing the vehicle, the fixed sum usually also includes other running costs such as insurance, vehicle excise duty (VED) and maintenance.