Salary sacrifice car

Salary sacrifice car – what is it?

Salary sacrifice car is a cost-neutral option for companies who want to offer their employees a car.

The employee finances the car through payroll deductions and take advantage of the employer's right to deduct VAT and reduced social security contributions. Through advantageous agreements, this offer becomes an attractive advantage and the company is represented as a more attractive employer. Salary sacrifice car is not the same as a company car or benefit car. The salary sacrifice car is used as a private car, but is leased by the employer, usually for 36 months.

Benefits of salary sacrifice car

Benefits for the employer

  • Attractive employer:

    Good for your image as an attractive employer with great benefits.

  • No risk:

    Included in the lease are costs for service and repairs, tyres, insurance and taxes. The company does not need to keep the car if the employee resigns, and LeasePlan guarantees the resale value. In addition to this, the salary sacrifice car is cost-neutral for the company, which means that the employee pays all leasing costs.

  • Happy employees:

    Personnel who are allowed to use their personal car both at work and private will be both happier and more loyal to their company.

Benefits for the employee

  • You get a new car

    You get a modern, hassle free, safe and fuel-efficient car with an easy ownership. Same monthly cost during the whole leasing period, and insurance, service, repair, tires, road tax etc. are included.

  • Lower costs

    The car is paid on gross salary, which makes it cheaper than buying a corresponding car. This in combination that you as an employee can take advantage of the preferential agreement negotiated by your employer and LeasePlan.

  • And no need to pay deposits or signing up for loans

    You do not have to borrow money or pay cash to get a new car. Instead, add this money to something that's more fun.

Read more in our brochure (PDF)

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