A new Complete Risk Protection package will mean that businesses signed up to an EV salary sacrifice scheme through The Electric Car Scheme are not at risk of unexpected costs while leasing an EV through salary sacrifice.
The Electric Car Scheme [1] has today launched a new market leading package that will mean businesses will not have to pay any extra fees should an employee leave unexpectedly.
Electric car salary sacrifice schemes have become well known as the most affordable way to get into an electric car. However, concerns still exist within businesses as to the costs and practicalities of implementing one, with risk of early termination fees among the areas holding them back.
For example, in the event that an employer needs to make an employee redundant, the company could incur a fee equal to 50% of the remaining car lease costs. This could amount to tens of thousands of pounds. Taking significant financial risks, even when offering substantial benefits, is often seen as a blocker for a company to offer a salary sacrifice scheme to employees.
Recent research conducted by The Electric Car Scheme found that 90% of businesses believe that there is a significant risk in having an electric car scheme as an employee benefit. The new Complete Risk Protection Service from The Electric Car Scheme ensures the employer is protected.
This new proposition differs from other market offerings, which often feature complex terms & conditions, exclusion periods and return limits, potentially leaving employers with significant bills or headaches. The Electric Car Scheme's Complete Risk Protection Service protects the employer from any shortfall due to employee resignation, redundancies, dismissals, long term sickness and family friendly leave. A new and unique feature even protects employers if the employee doesn't repay the company for damage to their car.
In addition, contrary to commonly held beliefs, there is no cost to offer the scheme, and The Electric Car Scheme removes all the hassle by running the scheme end-to-end for employers.
Other key data points from the recent survey:
- 55% already have a cycle to work scheme
- 83% plan to offer an electric car salary sacrifice scheme in 2024 for their employees.
- 89% believe it would cost them money to run an electriccar scheme.
- 90% believe there is significant risk to the company by having an electric car scheme (i.e. if an employee leaves or is made redundant).
- 74% believe it would take a considerable amount of work internally to implement
Ranking of most important considerations when considering a new employee benefit:
- Cost to set up and run the scheme.
- Benefits provided to employees.
- Risk to the business when running the scheme.
- Amount of work required to set up and run the scheme.
The Electric Car Scheme CEO and Co-Founder Thom Groot commented:
"We want to make it easy for companies to say ‘Yes' to offering electric car salary sacrifice as a benefit to their employees. Financial risk is understandably a big deal for companies. By offering The Electric Car Scheme with Complete Risk Protection, we can create a ‘no brainer' decision for companies and their employees to transition to net zero. This is a huge step for the scheme, one that will make it even more attractive to employers and employees alike."
Chris Heather, Shared Services Director at TopCashback commented:
"One of the concerns we had was the liability the business would incur should an employee not be able to meet their financial commitments or leave the business, potentially risking in excess of £10,000 per car.
As a result, we had decided not to progress with an electric car salary sacrifice scheme, until The Electric Car Scheme told us about their risk protection offered, which was not something we had come across before. This made us feel much more comfortable that these risks were mitigated, so we were delighted to offer our staff the significant savings to help access electric cars in a more affordable way, knowing that we didn't need to worry."
For more information visit: www.electriccarscheme.com [2]