VW Wants People To 'Sacrifice' Part Of Their Salary For A New Car
Would you call buying a new Volkswagen a sacrifice? Would you be willing to make a sacrifice to buy one? That's exactly what VW UK is hoping your boss will want you to do, as part of a new program to get buyers into a new hybrid or EV through their company. "Salary sacrifice" is what it's called,with the car coming directly off your pay instead of having to make separate payments to VW.
Buying A Car Through My Boss?
2025 Volkswagen ID. Buzz GTX Rear 3/4 ViewVolkswagen
Buying a car as a payroll deduction sounds like a strange ask. Tying your car to your job like you would your healthcare makes you even more stuck into a position than you already are. Which is a great reason for your boss to do it, of course.
2025 Volkswagen ID.4 from the front three-quarter angleVolkswagen
But in the UK there are bigger benefits. The country has long had a culture of company cars because they offered tax breaks that were good for you and the company versus buying your own. That culture has largely gone away, but thanks to EV and hybrid incentives, it's making a comeback. If your company gives you a work car, like, say, Charles LeClerc's Ferrari 812, that you can drive on your own time, you have to treat it like income. It's called a "benefit in kind." On a gas car, the tax rate can be 30% or more of the taxed value of the car. On an EV or hybrid, it can be as low as 3%.
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The UK government is still looking to get buyers into greener cars. While other countries are stepping back, the UK has reversed course and pulled forward its ban until 2030, though hybrids will be allowed for a few more years. If you're looking to make the switch, now might be the time, as incentives will likely drop as the rule comes into place.
Save On Pension And Health Expenses With A New Car?
Volkswagen ID. CROSS ConceptVolkswagen
VW says it will also cut your government pension and insurance costs and cut your employers' by a large amount as well. It expects your boss to pass some of that along to you. The idea is that you pay for some of the payment out of your paycheck (make that paycheque) and your employer pays for some of it from what they're saving. Your amount comes out of your gross, not net, so it lowers your taxable income burden too.
2025 Volkswagen ID.4 Charging At Tesla SuperchargerVolkswagen
Here's where things really get strange, though. Volkswagen Financial Services is offering the plan, and obviously it is pushing Volkswagen cars. But it will sell you other brands, too, and not just others in the VW Group family. VW's own site shows options including a BMW iX1 and a Tesla Model 3. Any car you want, as long as it slides under the CO2 emissions limit. The plan covers all maintenance and repairs as well as things like new tires as needed and your car insurance. VW will also help you with getting things settled should you find yourself looking for new work.
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Oh, and boss, if you're reading this, I'll take an ID.7 Tourer. That's the station wagon. Make it the 335-horsepower GTX Plus model, though I'll probably settle for the Pro S.
