Lombard is set to invigorate the motor finance market with a new leasing offering for electric and plug-in hybrid vehicles. This initiative, delivered through Lombard’s salary sacrifice scheme, aims to provide significant savings for higher-rate taxpayers and support businesses in reducing carbon emissions from employee travel.
Lombard’s salary sacrifice offering has been developed in partnership with ALD Automotive | LeasePlan, a fleet management and mobility company.
Drivers who participate in the scheme can save an average of 43% on the cost of leasing a brand-new electric vehicle (EV). For instance, a driver sacrificing £600 a month from their gross salary towards the car could save £288 compared to paying from their net salary.
Salary sacrifice schemes have gained popularity among businesses as they offer valuable employee benefits while promoting environmentally friendly commuting options. According to a recent survey by the British Vehicle Rental and Leasing Association (BVRLA), approximately 80% of businesses surveyed indicated they were likely to introduce a salary sacrifice car scheme.
Lombard’s offering includes a digital interface and customer support designed for businesses with over 250 eligible employees. The platform provides tools such as the EV Planner, which helps businesses assess the EV readiness of their fleet, identify suitable vehicles for transition, and determine necessary charging infrastructure.
Employees can browse the latest car models, select vehicles, and choose payment terms and mileage that suit their needs. The fixed monthly cost covers maintenance, insurance, road tax, and other expenses. Additionally, employees can add a home charge point to their order and pay for it through salary sacrifice, spreading the cost over the lease term.
This comprehensive solution aims to make the transition to electric and plug-in hybrid vehicles seamless for businesses and their employees, while also contributing to environmental sustainability.
Stuart Clark, Head of Climate Transition at Lombard, said: “Like cycle to work but for cars, having the option to lease an EV is a hugely attractive benefit for employees, who could save hundreds of pounds every month through our salary sacrifice scheme. There are no set-up costs for businesses, making it easy for them to provide a great employee benefit, while also potentially helping to reduce their carbon emissions from their employees’ business travel and commuting.”
Leon McMahon, Head of Retail Partnerships at ALD Automotive | LeasePlan UK, highlighted the importance of the collaboration between Lombard and ALD Automotive | LeasePlan in helping businesses achieve net zero goals. He noted that the partnership “provides a complete range of fleet services” and emphasised Lombard’s market presence combined with ALD Automotive | LeasePlan’s technological support.
