Salary Sacrifice Example
Below is an example of a MINI Electric Hatchback 135kW Cooper S Level 1 33kWh 3dr Auto on Personal Contract Hire vs Salary Sacrifice. We've used Personal Contract Hire (PCH) as the traditional finance method that closely resembles the Salary Sacrifice product.
When compared against one of the more popular methods of motor vehicle finance at the moment, Salary Sacrifice performs really well and could even provide your employees with savings.
| Salary Sacrifice Scheme | Personal Contract Hire | |
|---|---|---|
| Monthly Rental (starting in month 1 and ending in month 36) | £504.25* | £325.78* |
| Monthly maintenance package cost | N/A - included above. | £42.96 |
| Income Tax saving (based on a 20% tax payer) | £100.85 | - |
| National Insurance saving (based on 12% for a 20% tax payer) | £60.51 | - |
| Benefit in Kind (BiK) charges | £7.90 | N/A |
| Total | £350.79 | £368.74 |
*Pricing is based on a 3 year contract covering 10,000 miles per annum. Personal Contract Hire pricing is funder maintained and includes VAT as well as discounts exclusive to Bridle Vehicle Leasing. Salary Sacrifice figures will change depending on insurance data, such as but not limited to the home address, employee age and No Claims Bonus. All pricing is for illustration purposes only, please contact us to confirm.
Both products include the cost of new tyres, annual servicing, MOT costs (if applicable) and repairs. However, for just £17.95 less per month, your employee will have comprehensive insurance included, an option to purchase at the end of the contract and no personal credit check to undergo, all when put through a Salary Sacrifice scheme.
See below what each product includes.
| Salary Sacrifice Scheme | Personal Contract Hire | |
|---|---|---|
| Brand-new car? | Yes | Yes |
| Equal monthly rentals? | Yes | Yes |
| Vehicle Excise Duty (VED, or 'Road Tax') included? | Yes | Yes |
| Comprehensive breakdown cover included? | Yes | Yes |
| Comprehensive insurance included? | Yes | No |
|
Option to purchase at the end of the contract? |
Yes | No |
| Early Return Insurance included? | Yes | No |
|
Personal credit check? |
No | Yes |