Car finance hub
Salary sacrifice advice
Salary sacrifice can be a cost-effective way to pay for a new car by reducing the amout of income tax you pay. It’s more complicated than personal car finance, but it may be worth the effort.
Salary sacrifice is a way of leasing a new car with payments taken from your pre-tax salary, rather than your after-tax salary. It’s a more complicated form of financing to understand, and your employer has to be signed up with a service provider to manage it, but it can be significantly cheaper than a lease or PCP on the same car – especially for electric cars.
Most car finance and leasing activity in the UK is regulated by the Financial Conduct Authority, and anyone involved in the selling of car finance or brokering of leasing agreements must be accredited by the FCA.
You should always consider the terms and conditions of any agreement carefully before taking out car finance or leasing agreement, as you are making a substantial ongoing commitment and there may be significant costs if you change your mind or are unable to meet your commitments at a later date.