Salary Sacrifice vs PCP Calculator
Should you get an EV through salary sacrifice or finance it on PCP? Enter both deal details to compare the effective monthly cost and total outlay over the agreement term.
Frequently asked questions
Is salary sacrifice always cheaper than PCP for an EV?
Usually, yes. Salary sacrifice saves income tax (20-45%) and NI (8% or 2%) on the entire lease amount, while PCP offers no tax benefit. The salary sacrifice lease also typically includes insurance and maintenance, which PCP does not. However, the exact saving depends on your tax band and the specific deal terms.
Can I use salary sacrifice for any car on PCP?
Salary sacrifice schemes are offered by your employer and typically only for electric vehicles (to take advantage of the 2% BIK rate). You cannot choose any car — the options are usually limited to what your employer's scheme provider offers.
What is included in salary sacrifice that PCP does not cover?
Salary sacrifice lease payments typically bundle insurance, maintenance, servicing, tyres, breakdown cover, and road tax into one monthly payment. PCP covers only the finance — you must arrange and pay for all running costs separately.
Does PCP give me more flexibility than salary sacrifice?
PCP offers more choice of vehicle and the option to hand the car back at the end. Salary sacrifice ties you to your employer for the lease term and early exit can be expensive if you leave your job. PCP also lets you build equity if the car is worth more than the GFV.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.