How salary sacrifice is enabling eco-minded employees to join the Electric Vehicle Revolution22.04.22
As businesses across the globe take pause to consider ways to combat climate change on World Earth Day 2022, one positive trend that shows no sign of abating is the demand for electric vehicles (EVs).
This appetite for green living is now fuelling the demand for environmentally friendly swaps across salary sacrifice vehicle schemes too - despite pre-pandemic predictions that only around 10% of EVs would be on a subscription model by 2025.
Green credentials and financial benefits
A study of 1,568 drivers by UK car benefit provider Tusker, revealed that the drive for cleaner, affordable and easy-to-use EVs continues to attract increasingly eco-minded employees with 69% of those questioned stating that without salary sacrifice, they would have chosen an older, internal combustion engine vehicle instead of a new emission-free EV. What’s more, 93% had previously owned a petrol or diesel-powered vehicle before using Tusker, and 94% of those drivers are opting for Battery Electric Vehicles going forward.
Figures from The Society of Motor Manufacturers and Traders (SMMT) bear out this trend too with more electric vehicles purchased this March alone than across the whole of 2019, even against the ongoing market slump in the automotive sector, while Deloitte’s Sustainable Consumer survey found that around one in five people are now opting for low carbon transport.
While consumer buying habits fluctuate against the current rise in the cost of living, it appears that the simplicity and transparency of a subscription model is an increasingly attractive proposition – and not just for vehicles but for items like groceries and media packages too.
Benefits like no upfront fee or deposit, fixed monthly amounts throughout the term of the agreement and packages which include road tax, insurance and maintenance, mean that drivers have control over their monthly budgeting, and avoid being hit with hidden costs across the year. In fact, 65% of respondents in the Tusker study cited the fuss-free scheme and low costs as the most important reasons for choosing them as the provider.
“Salary sacrifice really is fast-tracking the uptake of EVs among motorists in the UK,” explains CEO of Tusker, Paul Gilshan. “Our annual driver survey ensures we are continuing to meet and exceed customer expectations. The latest research data has revealed just how fast drivers are changing their attitudes to EVs and thanks to the ease and affordability of changing to greener motoring, they’re able to make the switch through salary sacrifice,” he added.
Further findings from Zap Map revealed that 91% of drivers who are new to EV motoring have no intention of going back to a petrol or diesel-powered vehicle, proving that EVs look set to stay.
“With drivers recognising it as a truly affordable way to get behind the wheel of a new EV, it is speeding up drivers’ decisions to embrace the best way to drive a brand-new car,” adds Paul Gilshan.
Tusker has also undertaken research into the environmental impact of its drivers to assess the incremental advantages of green motoring. The numbers reveal that the company has managed to lower its average fleet emissions from 107.9g/Km in the last two years to just 37.3g/Km, keeping them on track to achieve a zero-emission fleet by 2030.
With more than 10 years’ experience in provider partnerships, both UK and Globally, Lyndsey joined Benefex in 2020 as Commercial Manager. Lyndsey has responsibility for benefit partnerships and the delivery of the marketplace proposition, including the overall provider strategy. In her time at Benefex, she has overseen a seismic growth in our benefit partner offering. Lyndsey has a particular interest in supporting organisations and employees to take action on sustainability through benefits programmes.