Car tax scheme helps drivers save £5,700 on Tesla Model Y

Experts are urging drivers to consider an electric car for 2023 to ask their employer about the free-to-use salary sacrifice scheme. The Government-backed tax-advantaged scheme is being adopted by more and more UK workplaces, allowing employees to use their pre-tax income to pay for an electric car lease with a very low tax rate.

Salary sacrifice puts brand new electric car leases into the reach of far more people, with vehicles for as little as £233 a month.

This represents a 30 to 60 percent discount on regular leases and even larger savings when compared with the financing costs of a new vehicle.

These savings represent huge savings, which are close to £1,000 per month for a Tesla Model Y.

Over a year, an Electric Car Scheme lease for the same Tesla Model Y will be £5,724 cheaper than the financing costs of a purchase.

This is also £3,648 cheaper than a traditional lease, making a huge difference during the cost of living crisis.

These cost benefits come before the savings in fuel and maintenance that electric cars offer over petrol and diesel alternatives.

Massive savings can also be seen with other popular electric cars, including the Kia E-Niro Electric Estate.

If someone were to buy the car, it would cost an average of £791 per month, compared to £353 per month when leasing with The Electric Car Scheme.

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Thom Groot, co-founder and CEO of The Electric Car Scheme, commented that the new number plates will encourage the purchase of new cars.

Despite this, he did warn that people will still be put off from buying electric cars because of the high upfront cost.

He added: “Thankfully, salary sacrifice will let you drive away in a new Tesla Model Y for around half the cost of a purchase. 

“All you’ll need to do is get your employer on board – and there really isn’t any excuse for them not to be, as The Electric Car Scheme costs nothing for businesses in time or money. 

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“If your work provides a carpark, it really should be giving you the option to park a clean car there too.”

On March 1, new number plates were rolled out, with new vehicles now carrying the “23” registration tag.

This is the first licence plate change of the year, with the “73” number plate being replaced after it was introduced in September 2022.

The Renault Zoe is the French brand’s new hatchback with an impressive range of up to 245 miles, with prices starting from £30,000.

With the ECS, drivers can access the EV from £233 per month, almost £100 cheaper than leasing regularly and almost £200 cheaper than buying.

Mr Groot continued, saying: “We recently had confirmation that the Government is onboard with the tax incentives that make salary sacrifice so attractive, extending support for The Electric Car Scheme until at least 2028. 

“That makes an electric car a far better deal than one fuelled by polluting fossil fuels.”

Employers offering the scheme face no costs themselves, with all of the administration handled by The Electric Car Scheme.

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