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Many businesses have implemented salary sacrifice schemes, and they are often used as excellent incentive tools to not only attract new talent but retain existing employees. The most common schemes offer private healthcare, gym memberships, childcare, or increased pensions contributions. As with all salary sacrifice schemes, taking advantage of a salary sacrifice scheme involves trading in a portion of pre-taxed annual salary in return for services or goods, which in this case would be a car. Due to the sacrificed amount typically coming from pre-taxed salary, employees’ taxable income is lessened, which saves them money in the long-term and is why so many candidates prefer to apply to companies that offer these schemes.
Better Cars For Less
One of the top benefits for employees is the ability to acquire better cars for less money, especially if their company is using a business that offers car leasing and a fully managed service like Pink Salary Exchange for the salary sacrifice car scheme. With flexible contracts for employers, most cars that they will be able to offer their staff through these schemes are top-of-the-line hybrid or electric. This not only gives employees better cars than they could typically afford alone, but it also reduces CO2 emissions.
No Deposit
When people buy cars, they tend to do so on personal finances in an attempt to spread out the cost, and this generally requires a large upfront deposit. When your employees take advantage of the salary sacrifice car scheme, they won’t need to get together a deposit in order to lease out the car from the company brand values. Saving time and money in the long run as they will have access to a fantastic car without needing to put themselves in debt, which can help reduce the stress levels of employees over time; this can have a direct impact on increasing productivity and the happiness of your staff.
Hassle-Free
As well as offsetting the cost of buying or putting down a deposit to finance a new vehicle, salary sacrifice car schemes often include essential extras that are an expected part of car ownership. These extras usually cover things such as insurance, road tax, breakdown cover, servicing, and maintenance. All the hassle, effort, and organization that generally comes with buying and owning a car, as well as ensuring it remains roadworthy, is taken care of for you by your employer and it will boost employee morale.
Car Ownership For All
For many people, car ownership is only a dream, and affording one seems a long way off. When a company offers a salary sacrifice car scheme, every employee will have access to a vehicle to make not only their personal lives easier but to provide them with appropriate transport for business travel, which will cut back on public transport costs. Another benefit to all staff having access to top-of-the-range cars is that it removes the separation between those with seniority only having access to company cars. This will give employees the impression that the business cares about all of their staff and not just those at the top level.