25th February 2016
As new number plates fly off the shelves this month, the idea of a hassle-free, new vehicle might be playing on many a motorist’s mind.
If this is the case, and price negotiations are not your best point, you might want to consider an alternative method to help bring down the price.
According to Busy Bees Benefits, salary sacrifice car schemes can save you nearly half the price and your employer can benefit from the savings too.
If you are purchasing a new car this month, make sure you speak to your employer first.
Salary sacrifice schemes can save you a large amount but do vary on each individual car and each individual person’s salary.
For example on the Busy Bees Benefits Car Leasing scheme, someone who is paid the average salary of £26,500 per year, would save 26% on a BMW i3 Hatchback – reducing monthly payments from £459.30 to £339.34.
These payments also cover MOTs, servicing, tyres, tax and insurance. Make sure you enquire with your HR department to see if a scheme could help with your next car purchase.
“If you’re not a natural born haggler and you’re currently in full time employment, using a scheme like this will help more than ever this month,” explained Jo Dalby, finance director at Busy Bees Benefits. “This is due to the peak in car sales, which happen every March and September when new number plates are released. If you go straight to the high street this month, you might find that it is more difficult than usual to negotiate on price.
“However, if you use a salary sacrifice method, the savings can reach anywhere up to 42%, meaning even the best bargain hunters will struggle to get a better deal elsewhere. For those, whose employers aren’t yet offering a scheme, now is a great time to lobby them into doing so as they can save also money on National Insurance contributions.”
These car schemes allow you to exchange part of your salary for a fully funded car.
Throughout such a plan, you have monthly payments deducted from your salary and at the end of the lease you have the option to purchase the car, return it or lease a new one. It’s just like leasing a car on the high street, but the salary sacrifice element can make it much cheaper.