10 great cars to have on salary sacrifice in 2025

Employers and employees are really catching on to salary sacrifice because you can drive a brand new electric car (EV) at a lower cost than if you were to lease the same car privately yourself.

The attractiveness of salary sacrifice meant that by the end of 2024, battery electric models represented 37% of the total lease fleet of British Vehicle and Leasing Association (BVRLA) members and 44% of new additions.

Fleet Alliance, which is a member of the BVRLA, is also witnessing huge growth in electrified vehicles – electric cars and plug-in electric hybrids now make up a record 82% of all orders.

It’s all to do with tax breaks that reduce the cost to employees at a company that decides to implement an EV salary sacrifice programme as part of its HR benefits package.

Each month, you as an employee can ‘sacrifice’ part of your gross salary (so you pay less tax and National Insurance overall) and with that ‘sacrificed’ amount you can lease a car organised by your employer to include all the running costs (bar the electricity).

As the car is company-provided, there is a tax to pay on the benefit, but don’t worry. Electric cars are a win-win because, with zero emissions, for 2025/26 they sit in the lowest 3% benefit in kind tax band and this will only rise by one point for the next three years. For example, the lowest-priced version of the Kia EV3 featured later here will cost £16.46 a month for a 20% taxpayer or £23.06 for those in the 40% banding this current tax year (2025/26).

If you are interested and want to read more on salary sacrifice, head over to our salary sacrifice scheme for EVs page.

Despite all the negative stories about EV demand from private buyers, there’s an unstoppable flow of new EVs, and indeed brands, coming to the market. This year will see many more lower-priced EVs on the market, some of which like the Renault 5 E-Tech have much charm.

But which EV should you pick as your salary sacrifice car? We’ve picked out 10 of the latest models, from small hatchbacks to executive SUVs, for you to consider.

How we work out your salary sacrifice and your savings

Your net salary sacrifice is what the car will cost you after deduction of the rental, the benefit in kind tax and the tax and National Insurance savings you make on the reduced salary. We then calculate the savings available by comparing the net cost of salary sacrifice against leasing the car personally (Personal Contract Hire) on a like-for-like basis. There’s usually such a significant saving that it allows you to drive a far more desirable EV than you ever imagined.

Quotations are based on 3 years/10,000 miles pa on a 3+33 profile for a 40% taxpayer. All information correct as of 23 March 2025.

Audi A6 e-tron Performance Sport 270kW Auto

Range: 435 miles
Salary sacrifice net: £749
Equivalent PCH monthly cost: £1,231
Monthly cost saving: £482

The Audi A6 e-Tron is a rival for the BMW i5 and Mercedes EQE. It comes in either five-door hatchback (Sportback) or estate style (Avant) and Audi claims it’s the most aerodynamic production Audi to date, hence the long ranges, helped by a big 100kWh battery. Inside there’s an impressive gently curved screen atop the dash for the driver and infotainment.

Superfast top-up charging is also a feature many busy company users will appreciate. With a high 270 kW charging capacity, with an ultra-rapid public charger the A6 e-tron quattro can take in enough power to cover up to 192 miles in a claimed 10 minutes and go from 10-80% capacity in 21 minutes. At 435 miles for this Performance model, it’s one of a handful of models that break the 400 mile barrier on a single charge.

Polestar 3 – 111kWh long range dual motor 220kW auto

Range: 392 miles
Salary sacrifice net: £911
Equivalent PCH monthly cost: £1,520
Monthly cost saving: £609

There’s a lot coming from the electric-only Polestar brand this year. First there was the 2, later in 2025 we’ll see the 4 (an SUV coupe with no rear window) and the 5, a luxury five-door GT.

For now, the sporty-looking Polestar 3 is the first newcomer to the company car price lists. It’s a big SUV, which shares much with its twin, Volvo EX90, but has five rather than that car’s seven seats and a sportier profile. You usually pay extra for more range but Polestar has given the entry level 3 this crown. With this dual motor model there’s just short of 400 miles on offer from a single charge.

BMW iX 300kW xDrive45 Sport 101kWh 5dr Auto Utility

Range: 374 miles
Salary sacrifice net: £721
Equivalent PCH monthly cost: £1,169
Monthly cost saving: £448

The imposing BMW iX SUV has been a solid favourite with company car drivers and salary sacrifice takers. Its unmistakable look has subtly changed in the 2025 version – that love-it-or-loathe-it grille has a new surround and the bumpers are a little different.

The key news is that technology upgrades in the transfer from the battery to the motor and new battery cell technology along with other details such as new wheels and tyres has boosted range in every version even with increased power. With an electric motor on both the front and rear axle, all BMW iX models have electric all-wheel drive.

Inside, the iX is limousine-quiet even for an EV and very comfortable. Heated seats and a Harman Kardon sound system are now standard on all models.

Kia EV3 81.4kWh Air 201bhp Auto

Range: 375 miles
Salary sacrifice net: £389
Equivalent PCH monthly cost: £641
Monthly cost saving: £252

Replacing the Soul EV, the new Kia EV3 looks to become a family favourite. It’s a compact EV which successfully shrinks down the bold styling of the Kia EV9. In a four-car range, there’s one with a 58.3kWh battery, while the long range Air GT-Line and GT-Line S have an 81.4kWh battery which is good for a claimed 372 miles, very impressive compared to the competition.

Equipment is good and all Kia EV3s have heated front seats and a heated steering wheel, which means you can use less heating in winter to help the range. Family-friendly storage includes a centre console with sliding table and a storage area which can hold a small backpack and under the bonnet there’s a small boot, or ‘frunk’.

Skoda Elroq 85 82kWh Edition Auto

Range: 360 miles
Salary sacrifice net: £448
Equivalent PCH monthly cost: £746
Monthly cost saving: £298

A new name and new-sized electric SUV from Skoda, which it claims is the most affordable in this segment of the UK market, heads-up against the Kia EV3. It’s notably on the same price level as the equivalent petrol Skoda, the Karoq.

The Elroq continues the Skoda theme of small practical touches called Simply Clever including compartments offering 48 litres of storage capacity and a storage net for the charging cable under the parcel shelf. There is also the trademark umbrella in the driver’s door.

Skoda Elroq models come with three different battery sizes and powertrains, which translate to the model names 50, 60 and 85. The 82 kWh battery of the Elroq 85 can charge from 10 to 80 per cent in 28 minutes.

Cupra Tavascan 77kWh V1 286PS Auto

Range: 353 miles
Salary sacrifice net: £470
Equivalent PCH monthly cost: £765
Monthly cost saving: £295

If you like your SUV to look less boxy than the norm, how about the new Cupra Tavascan (the name of a Spanish mountain village), from Volkswagen’s sporty Spanish brand? It’s called an SUV coupe in fact, with the brand’s ‘shark’ nose (where the logo lights up) and inside the use of copper effect trim is also a Cupra signature.

The Tavascan is based on the Volkswagen ID.4, it’s a competitor for the Kia EV6, Tesla Model Y and new Ford Capri. Standard equipment includes a 360-degree camera view for easier parking and a powered tailgate.

There are two power outputs: a 282bhp, single motor, rear-wheel-drive (RWD) model and one with 335bhp and two motors, thus all-wheel drive (AWD). All have the same 77kWh battery pack.

MINI Aceman 54.2kWh SE Classic 160kW Auto 5 door

Range: 251 miles
Salary sacrifice net: £446
Equivalent PCH monthly cost: £746
Monthly cost saving: £300

The MINI Aceman is a new entrant to the MINI  family, bigger than the Cooper hatchback but smaller than the Countryman, an electric only MINI  competing with the compact SUVs such as the Kia EV3 the Skoda Elroq and the Ford Puma Gen-E.

It’s as distinctive on the inside as on the outside. Instead of a tablet-shaped infotainment system, like the smaller MINI, the Aceman puts the infotainment through a dinnerplate-sized screen set against a patterned fabric dashboard. The driver has a head-up display.

Acemans come in two flavours: E and SE, offering 192 and 252 miles of predicted range from a 42.5 kWh and 54.2 kWh battery respectively. All versions have that famous MINI sporty handling and a big choice of option packs.

Renault 5 E-Tech Techno comfort range 150hp Auto

Range: 253 miles
Salary sacrifice net: £327
Equivalent PCH monthly cost: £548
Monthly cost saving: £221

Lots of people want the new Renault 5, reinvented for the electric age. UK availability started early 2025 after the French had taken it to their hearts and it had won Car of The year.

The five-door five-seat 5 E-Tech (3.92m long) is all about personalisation, should you wish. Retro colours such as Pop Yellow and Pop Green can be paired with patterned roofs, stickers and colour accents.

There’s a choice of three models – Evolution, Techno and Iconic Five – and two powertrains: 40kWh battery and 120hp, or 52kWh battery and 150hp, with a range of up to 252 miles. That’s called the Comfort range and if you’re not going far before the next charge the other is Urban range.

There’s even the choice of an optional baguette holder!

Ford Puma Gen-E 43kWh (53kWh) Standard Range Select 123kW FWD Auto

Range: 233 miles
Salary sacrifice net: £297
Equivalent PCH monthly cost: £482
Monthly cost saving: £185

Ford’s compact SUV has been a top seller in its petrol form, so the all-electric version has been eagerly awaited. The choice is a simple one of two trim levels with one battery size of 43kWh. That’s smaller than some rivals but it helps give a 10-80 per cent charge in approximately 23 minutes.

The Puma Gen-E majors on storage space within its compact dimensions. The parcel shelf lifts up with the tailgate and beneath the boot floor the petrol Puma’s MegaBox boot storage space has been boosted to become GigaBox, for mucky gear (it has a drain hole) or for carrying tall suitcases.  A 43-litre ‘frunk’ uses some of the space vacated by the petrol engine, ideal for storing the charging cable without having to unpack the boot.

Vauxhall Frontera 83kW Design 44kWh 5dr Auto Estate

Range: 186 miles
Salary sacrifice net: £307
Equivalent PCH monthly cost: £517
Monthly cost saving: £210

Vauxhall has brought back an old name for this new SUV available in a petrol hybrid and pure electric featured here. As part of the Stellantis group the Vauxhall is closely related to the Citroën E-C3.

Leasing costs are very low thanks to a low list price: the Frontera Electric and Frontera Hybrid both start from £23,495, making it the first car in the UK market to offer list price parity between electric and petrol hybrid versions.

At 4.4m the Frontera Electric is about the same length as a Vauxhall Astra and bigger than the Citroën but narrow enough for urban streets. It has a single 44kWh battery choice with a range of up to 186 miles, which should be fine for more than a week of family chores.