Fleet News

Leasedrive reveals most popular salary sacrifice cars

Looking at more than 3,500 cars currently supplied under its salary sacrifice car scheme mycar, the Leasedrive Group has revealed that the Audi A3 is the most popular vehicle choice among public sector employees and the Ford Fiesta is the most popular car choice for private sector employees.

The analysis also revealed that average vehicle emissions had also dropped in the past year in the salary sacrifice fleets of both sectors – dropping from 120.6g/km to 117.9g/km in the public sector and from 142.9g/km to 135.9g/km in the private sector.

Underscoring the differences, red was the most popular vehicle colour in the public sector and black by a significant margin in the private sector.

Roddy Graham, commercial director at the Leasedrive Group said: “Employees entering car salary sacrifice schemes are clearly more conscious than ever of their green responsibilities and definitely more aware of the positive BIK tax implications of opting for cars with lower CO2 emissions.

“The disparity in green choices between public sector and private sector drivers is not altogether surprising as the average contract mileage for a vehicle under the mycar salary sacrifice scheme is 29% higher in the private sector, at 40,032 miles compared to 30,913 miles in the public sector. The higher average mileage of the private sector vehicle explains the 15 per cent higher CO2 emission figure – drivers covering longer distances prefer larger, more comfortable vehicles.

“A properly designed and communicated salary sacrifice scheme, such as mycar, offers significant benefits to employers, employees and the environment. It’s a win-win-win situation on all fronts.

“An employer pays a more tax efficient remuneration and reduced National Insurance (NI) contributions. As most organisations’ HR departments have the process and system capability to deliver benefits through salary sacrifice the cost exposure of introducing such a scheme is negligible, providing they put buffers in place. A salary sacrifice scheme also eliminates the ‘grey’ fleet risk, which frequently carries a significant but mostly unrecognised cost.

“Employees can enjoy the benefits of a company car at a lower than expected cost, with the savings on income tax and NI contributions outweighing their BIK contributions. They also enjoy the use of a more fuel efficient, fully serviced and maintained new car for two or three years backed by comprehensive insurance.

“In terms of the environment, a salary sacrifice scheme reduces the carbon footprint across an organisational fleet and lowers fuel costs. It also improves an employers’ corporate social responsibility standing.

“A salary sacrifice scheme also acts as a valuable recruitment and retention tool in the war for talent. With the current pressures on salaries, salary sacrifice provides a creative way to enhance the total remuneration package in the eyes of the employee at no additional cost to the employer. It is a tax-efficient scheme for the employee, saving them money.”

The Top 5 Most Popular Vehicles – Public Sector

Audi A3
Citroën C1
Peugeot 107
BMW 1 Series

The Top 5 Most Popular Vehicles – Private Sector

Ford Fiesta
Audi A3
BMW 1 Series
BMW 3 Series
Mini Cooper

Interestingly, women were far more likely to enter a car salary sacrifice scheme in the public sector than men, three-quarters of the mycar population in that sector doing so. A reverse trend is apparent among private sector employees, 58 % of men signing up.

The Top 5 Most Popular Colours – Public Sector

Red - 22%
Black - 21%
White - 17%
Blue - 9%
Silver - 5%

The Top 5 Most Popular Colours – Private Sector

Black - 32%
Blue - 14%
Red - 12%
Grey - 10%
White - 10%


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