Switching to an electric car has never been more appealing. With low running costs, generous tax incentives, and an ever-growing range of models, EVs are a natural choice for many UK drivers. But there’s one question that often arises: how do you afford a new EV without a hefty deposit or long-term loan?
That’s where salary sacrifice schemes come in. These arrangements allow employees to lease a brand-new electric car using part of their gross salary. Because the cost comes out before tax and National Insurance, drivers can make significant savings while employers benefit too.
This guide takes a different look at the providers offering EV salary sacrifice in the UK. Instead of simply comparing them side-by-side, we’ll cover what to expect from a good scheme, highlight common pitfalls, and then introduce the companies worth considering.
How does salary sacrifice for electric cars work?
Think of salary sacrifice as a trade-off: you give up a portion of your monthly pay, and in return you receive a fully maintained electric car.
Typical features include:
Tax savings: Reduced Income Tax and National Insurance contributions.
Employer savings: Lower National Insurance bills, sometimes making the scheme cost-neutral.
Bundled extras: Insurance, servicing, maintenance, breakdown cover, and road tax rolled into one monthly cost.
Vehicle flexibility: Access to a range of EVs, from everyday runabouts to high-end models.
It’s a way of driving a new car with predictable costs, no deposit, and less financial risk than a traditional loan.
What should you look for in a provider?
Choosing a salary sacrifice partner isn’t just about monthly price. The following factors make a big difference:
Contract length options: Some schemes lock you into 3- or 4-year agreements, while others offer short-term flexibility.
Vehicle range: Check whether the provider offers budget-friendly EVs, premium marques, or both.
Transparency: Hidden charges can undermine savings—clear pricing is a must.
Customer service: Ongoing support matters when issues arise. Family-run firms often provide a personal touch.
Added benefits: Look for extras such as home charging solutions, fleet support for businesses, or carbon-reduction initiatives.
Providers of EV Salary Sacrifice in the UK
Here are some of the leading names, each bringing something slightly different to the table.
Cocoon Vehicles – Best for flexibility
Cocoon has a background in short-term car subscriptions, which sets it apart from most salary sacrifice providers. Instead of being tied into a long contract, you can access EVs on a much shorter basis—sometimes as little as one month.
Why choose Cocoon?
Short-term options ideal for uncertain times
Wide choice of electric cars, including premium models
Great for businesses trialling EVs before committing long-term
Inclusive packages available with insurance and servicing
Best suited to: SMEs, start-ups, or anyone wanting maximum flexibility.
EZOO – Best for premium EVs
EZOO has built a strong reputation as a family-run provider focused on high-end electric cars on salary sacrifice. Their offering is designed around transparency and customer experience.
Why choose EZOO?
Access to premium EVs like Tesla, Audi, and Mercedes
Transparent pricing with no hidden extras
Up to 60% cheaper than traditional leasing routes
Flexible contracts from monthly through to four years
Strong sustainability focus, helping businesses meet net-zero goals
Best suited to: Employees or businesses wanting premium vehicles with a personal level of service.
Electric Car Scheme – Best for affordability
For drivers who want to keep costs as low as possible, Electric Car Scheme places affordability at the centre.
Focused on savings above all else
Simple, straightforward service
Smaller range of premium models
Best suited to: Cost-conscious employees who prioritise value.
Octopus EV – Best for energy bundles
Octopus EV is part of the wider Octopus Energy group. Their unique edge is combining car schemes with home charging and green energy tariffs.
Home charging solutions included
Comprehensive vehicle range
All-in packages available
Higher upfront costs than some rivals
Best suited to: Drivers who also want a home charging solution and eco-friendly energy supply.
Love Electric – Best for sustainability goals
Love Electric promotes EVs as a way for companies to cut carbon emissions. They offer a good range of vehicles and packages.
Strong sustainability credentials
Competitive deals
Fewer short-term options compared to Cocoon
Best suited to: Businesses focused on environmental impact.
At a glance: salary sacrifice provider comparison
| Provider | Strengths | Flexibility | Vehicle Range | Extras |
|---|---|---|---|---|
| Cocoon Vehicles | Short-term contracts, adaptable | Very high | Wide, incl. premium | Monthly terms, ideal for SMEs |
| EZOO | Premium cars, transparency | High | Tesla, Audi, Mercedes | All-inclusive packages |
| Electric Car Scheme | Affordability and simplicity | Moderate | Limited premium | Focus on savings |
| Octopus EV | Energy bundles with home charging | Moderate | Wide | Green energy integration |
| Love Electric | Sustainability focus | Moderate | Good range | Carbon-reduction initiatives |
Common questions about EV salary sacrifice
Is a salary sacrifice car scheme worth it?
For most employees, yes. The tax and NI savings make driving a new EV far cheaper than buying or leasing privately.
Do I own the car at the end?
No. The car is returned at the end of the term, but you can usually start a new agreement.
What if I leave my job?
Most schemes have early exit options, though fees may apply. It’s important to check before signing.
Are all costs included?
With the best providers, yes—insurance, servicing, breakdown cover, and road tax are rolled into one monthly payment.
Can small businesses take part?
Yes. Providers like Cocoon and EZOO offer packages for SMEs as well as larger corporations.
Final thoughts
There is no single “best” salary sacrifice provider—your choice depends on what matters most.
If flexibility is your top priority, Cocoon Vehicles is hard to beat.
If premium cars and excellent service matter most, EZOO is a strong option.
If cost savings are the main concern, Electric Car Scheme fits the bill.
For bundled energy solutions, Octopus EV makes sense.
If sustainability is the focus, Love Electric is well worth a look.
By weighing up contract length, vehicle choice, and included extras, you can find the provider that best matches your lifestyle or business needs.
