The Tesla Model 3: Is this the ultimate Salary Sacrifice Electric Car?
There was only one truly dominant car during the year that was 2020 – the Tesla Model 3 . Having swept up most awards for electric car of the year, car of the year and also becoming the top-selling car of December 2020, it is fair to say that the UK have firmly adopted Tesla’s alternative to the BMW 3 series , Mercedes C-Class and Audi A4 with open arms! In just a short space of time, we have seen the UK’s fleet demographics evolve from diesel to petrol to PHEV to electric. This has all taken placed in a matter of a few years; so eye-wateringly quick that many of us haven’t truly appreciated that the landscape has changed forever.
The Model 3 was effectively the answer to many customers objections to electric cars – They are too expensive. They have insufficient electric ranges. They are too big. They don’t look good. They are too slow. Because of the poor quality of information often disseminated in our mainstream media, there is an almost defeatist view that EVs are nothing more than a PR stunt for companies trying to look eco-friendly or for personal customers who simply want to extend their veganism into their automobile choices.
It was never considered a functional and practical way to offer motoring until Tesla produced their Model X and S, which effectively blew apart most of these arguments. While amazing demonstrations of automotive design, innovation and technology,these vehicles were far from affordable for the general population. Indeed, Tesla themselves recognised this and made it their mission to produce a “car for the people” – the Model 3. With a standard plus, long range and performance option, there is effectively an answer to most of the company car, salary sacrifice and personal leasing market. While not yet wholly affordable to all, the Model 3 is a great step towards achieving this.
The Tesla approach has made many manufacturers stand up and listen to the changes afoot. They only have to look at Tesla’s seismic value (it is the most valuable car manufacturer on the planet) to realise that they either change or go. One of the early adopters to this was Volvo and their “Polestar” collaboration. While Scandinavia are very much a region of pure electric technology, the Swedish manufacturer was not yet producing enough home grown talent; their Volvo PHEV options via the XC40/60 and 90 are popular but are not BEV’s.
To combat the growing popularity of Tesla amongst the territory the Polestar concept was born . At the head of this innovation is the advance electric fastback known as the “Polestar 2”, a true competitor and alternative to the Tesla Model 3. With a more aggressive, almost American muscle car exterior, and a true European interior, this option has proved to be incredibly popular and many customers are now comparing this next to the Tesla.
Salary Sacrifice & Electric Cars
But why is salary sacrifice so important to this? You only have to review Google to see that salary sacrifice electric car is one of the foremost searches. But why is this now so popular? Effectively this allows an employee to procure a new car via their employer and a leasing company. Unlike a company car, the salary sacrifice scheme deducts the cost of the monthly rental (finance and maintenance payments) from the employee’s gross pay i.e. before tax and any National Insurance/other schemes.
The advantage is that an employee can get a new car and pay for this before the tax is deducted. Bear in mind that if you went the personal contract hire route, you would lose 20-40% of your salary to tax BEFORE you pay for the vehicle. Salary sacrifice is, if your employer allows, the most tax effective way to lease a brand-new electric car.
There is also a corresponding benefit to the employer in that there is a reduction in employer National Insurance. eCarLease now work with salary sacrifice providers who can administrate this on the employer’s behalf with HMRC – we organise the finance, the employer pays the finance company for the car, the employer deducts this from the employee’s salary and the salary sacrifice experts administer the scheme. And because it is an electric car, there is 0% BiK payable. Unlike a petrol or diesel vehicle, there is no company car taxation consequences.
In terms of the car shown, the Polestar 2 FASTBACK SPECIAL EDITION 300kW Pilot Plus 78kWh Dual motor 5dr 4WD [Auto] [Pure Electric Vehicle]
- Thunder Metallic Paint
- Weave Tech cloth – Charcoal with black ash deco
- 19″ 5 V Spoke black diamond cut alloy wheels
On the technical-side, company car and business users can note the P11d at £49,800.00 and CO2 at 0g/km. The 78 kWh lithium-ion battery delivers a 292 mile range (WLTP), 0-62 times of 4.5 seconds and 408ps. Expect a 205 mile range in cold/winter weather and circa 280 in more mild climates.
In terms of charging capability, expect an 11kwAC point to achieve full charging capacity in just over 8 hours and 20-80% in 30 mins when using a 150kW DC option. Service intervals on the electric Polestar are every 24months or 18,000 miles (whichever lands sooner).
As standard the car includes rain sensors, 360 degree camera, adaptive cruise control, front/rear parking sensors, pilot assist, foot operate tailgate.
Reversing camera, 11” centre display, 12.3” driver display, BLIS, DAB radio, automatically dimmer mirrors, Harm Karon sound system, fixed panoramic roof.
Adaptive LED lights, pixel LED headlights, climate control, heated steering wheel, heated front and rear seats, alarm system and 19” alloys. In terms of additional options consider – upgraded leather upholstery and the performance pack.