Consumer EV adoption has grown steadily in recent years, and not all countries are at the same level; China and Germany, along with Costa Rica are emerging leaders on this front. That being said, projections are showing the market is increasing in counties.
However the same barriers remain for any consumers when it comes to purchasing an electric vehicle: the cost, charging uncertainty, and unfamiliarity of a new purchase.
But employer driven programs are addressing these concerns in a more direct way than consumer facing channels are. And in markets where these programs are mature, their contribution to total EV registrations is significant.
Removing the Upfront Cost Barrier
There is a significant price differential between EV and combustion vehicles at the point of purchase. And for many this is entirely offputting for buyers who cannot absorb this type of cost upfront.
Employer programs remove the purchase cost upfront entirely. The employee accesses the vehicle through a monthly deduction from their paycheck. There’s no deposit, no balloon payment, no finance agreement to secure independently. The vehicle is delivered and collected through the employer schedule with no capital requirement from the employee.
Reaching Income Brackets Consumer sales don’t
Again, connected to the above point, there are huge swathes of the population across the globe who cannot afford to purchase an electric vehicle. They are generally available to those with a higher income bracket. The median buyer of an electric vehicle is generally earning significantly more than the general population. A pattern reflected in both the upfront cost and requirement of some charging structure. Which renters and apartment residents frequently cannot access.
Employer programs reach employees across all levels of income and above a salary participation threshold meaning the option to switch to an electric vehicle is available for those who might not otherwise have been able to do so. And when you allow employees to use a salary sacrifice electric car calculator they can see for themselves how much more cost effective this option is.
Handles Complexity Around the Purchase
Buying a new vehicle is straightforward most of the time but there are often small details that add an extra layer of complexity. Between arranging road tax, insurance, servicing, and end-of-term disposal there’s more than one hurdle facing new car buyers when they consider leasing a vehicle or they take out finance for a new car.
However, many employer EV programs bundle all of these into the monthly scheme, so it’s all included in the one payment each month. This removes any friction or uncertainty over the decision, making it an easier choice to make when they’re in the market for a new vehicle.
Replaces the Purchase Decision
If you’re running a salary sacrifice program for EVs, so your employees don’t need to go through the hassle of scouring the market for the right car in the right price bracket. If you have one vendor you use, there will be a limited number of options they can choose from, making it a simpler decision and fewer variables to consider, including the initial price or the deposit.
It’s one fixed price, there’s no calculating how much extra charging and insurance will be, or having to choose options between different models and makes for the best value purchase. You simply present them with the Evs, the breakdown of the total monthly cost coming from either salary, and everything is taken care of.
