HSBC shares scheme to cut monthly cost of new EV by 40%

HSBC has recommended Octopus Electric Vehicle's salary sacrifice scheme (Image: Getty)

HSBC has shared a way for drivers to get a brand new electric vehicle at an impressive monthly saving of up to 40%.

The popular banking company has recommended Octopus Electric Vehicles' salary sacrifice scheme to customers thinking about getting a new EV.

Fiona Howarth, CEO of Octopus Electric Vehicles, highlighted that a salary sacrifice scheme allows drivers and employers to save money, particularly with the number of business perks currently present.

She explained: "Salary sacrifice is by far the cheapest way to pick up a new EV, but the benefits are not exclusively for drivers, but for their employers too.

"Companies are able to cut their emissions, help retain staff by offering a brilliant perk, and save money. By partnering with HSBC UK, we hope to make businesses of all sizes aware of one of the most attractive business perks around right now."

The scheme allows company employees to pay for an electric car directly from their wages (Image: Getty)

A salary sacrifice scheme allows company employees to receive a vehicle in exchange for a portion of their overall wages, with a set amount typically paid in monthly charges.

As a result, motorists can avoid an expensive single payment and could also result in tax savings for both the employee and company.

Currently, Octopus Electric Vehicles offers the cheapest salary sacrifice scheme for an electric car in the UK, with drivers able to get behind the wheel of a new Dacia Spring for just £195 per month.

Robert King, UK head of commercial banking sustainability at HSBC UK, noted that the scheme makes the switch from a petrol or diesel car to an electric alternative much more affordable.

He continued: "Supporting the transition to net zero is a vital part of our UK strategy.

"The Octopus EV salary sacrifice scheme is a great example of how we work with our partners to deliver innovative solutions to our customers, in this case offering a more sustainable travel alternative for our clients at a reduced cost."

Despite a slump in private sales earlier in the year, new electric vehicles have grown in popularity during 2024, with zero-emission models set to make up nearly 20 percent of the market.

The growth in sales is said to have been helped by a number of incentives, with the Government currently offering the most incentives to company vehicle buyers, including a much lower Benefit in Kind (BiK) rate of two percent.

However, from April 2025, electric vehicle owners will need to pay for their road tax for the first time, with some EV experts urging the Government to add more incentives to support owners, such as a VAT cut on public charging to lower running costs.

The scheme allows drivers to get behind the wheel of a Dacia Spring EV from £195 per month (Image: Getty)