14 June 2022
Businesses Looking Ahead With EV Switch
With the looming threat of the UK Government’s 2030 ban on the production of petrol and diesel vehicles, the business community are helping employees make the switch to electric vehicles (EVs) early. New research clearly shows that people are ready and willing to make the switch to EVs, and initiatives like a salary sacrifice car scheme are a practical and hugely beneficial way of doing this.
Although only a small percentage of small to medium enterprises (SMEs) currently run a salary sacrifice car scheme (13%), there is a commitment within that community to explore the feasibility of switching from internal combustion engine (ICE) vehicles to EVs and ideally to go live with it as soon as possible. Pink Salary Exchange runs most of its salary sacrifice car schemes through larger corporate businesses, and hence the percentage take-up in that sector is a little higher in our experience, but these research findings do show a commitment from businesses of all shapes and sizes to help their employees make the critical switch to EVs in good time before the 2030 deadline.
Employee commitment to switching to EVs
The key findings from the research carried out by insurance provider Churchill Expert found that:
- 68% of SMEs were considering a salary sacrifice car scheme which offered its employees EVs, and 56% of those intended to go live with such a scheme within the next 12 months.
- 33% of drivers believed that a business offering a salary sacrifice car scheme would represent a positive view of the business as an employer.
- 17% of respondents said they would consider switching jobs to an employer offering a salary sacrifice car scheme.
- 19 million drivers of ICE vehicles want to make the switch to EVs.
Recent months have seen the EV industry receive a huge boost in sales and demand, prompted by increased media attention to the climate crisis, the current cost of living crisis and fuel shortages in garage forecourts at the end of 2021. This has resulted in people exploring different ways to save money and live more responsibly, and the combined effect of this is that leasing an EV through a salary sacrifice scheme brings huge benefits to the employee.
Leasing an EV is increasing in popularity
Leasing an EV through a salary sacrifice car scheme is much cheaper than buying a depreciating asset, while people are also attracted to the flexibility and freedom to drive new EVs on their own terms. This is reflected in further research findings which demonstrate that people recognise the rapid development of EV technology and how driving an EV is now a much more attractive proposition than it was a few years ago.
- 65% of the 19 million drivers wanting to switch to EVs would consider leasing it rather than buying it.
- 44% of those wanting to switch to EVs cite cost-effectiveness as the main factor.
- 24% were attracted by being able to update the vehicle regularly to keep up with developing technology.
- 27% were attracted by avoiding ownership of a depreciating vehicle.
Flexible EV leasing deals through salary sacrifice car schemes
With employees able to choose the length of their leasing deals and an annual mileage to suit their lifestyle, there is great freedom of choice when leasing an EV, with all the best vehicle manufacturers now offering a range of EVs to suit all areas of the market. Leasing an EV is therefore a great way to gradually make the switch and introduce employees to a new way of driving, without the burden of ownership. These research findings also show that people recognise the EV market is improving and the infrastructure is more capable of coping with demand from EV drivers, and it also looks like businesses are going to play a key role in helping employees make the switch from ICEs before 2030.
If your business wants to explore the opportunities of offering a salary sacrifice car scheme, then contact Pink Salary Exchange today, and our experts can spell out the various benefits for everyone.