Top Alternatives to LV Electrix: Salary Sacrifice Schemes You Can Trust
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LV= General Insurance, one of the UK’s largest electric vehicle insurers, has decided to shut down its ElectriX division, ceasing all operations. Initially created as a “one-stop shop” for electric vehicles, ElectriX offered services including leasing, home charging solutions, and electric vehicle insurance.
While current lease customers will continue to be supported by CBVC, a partner organisation, the beginning of 2025 marks the end of LV= ElectriX as it once operated.
Despite this, the electric vehicle market is still rapidly growing. 2025 has seen the strongest start to the year on record for electric vehicle adoption, emphasising the need for reliable alternatives in electric vehicle services and smart home charging solutions.
Electric car salary sacrifice schemes have gained popularity for this reason. Employees participating in these schemes enjoy benefits like scheme-included maintenance, tyres, MOTs, and breakdown cover - with fully comprehensive insurance and charger installation often available as add-ons. A 2024 study revealed that 83% of respondents were interested in launching an electric car scheme within the year, offering their employees access to more affordable, and well-rounded lease options.
In this article, we will discuss what to look for in a salary sacrifice car scheme provider, how to set up a scheme at your company, and why it is especially important to consider an EV salary sacrifice scheme this year.
Overview of LV ElectriX Services
ElectriX used to provide a wide range of EV leasing services - including business leases, personal leases, and salary sacrifice - as well as EV insurance and charging installation. The aim was to create a one-stop-shop, where a driver could pick their car, their charger, and their insurance - as well as optional extras, all in one ecosystem. Although ElectriX is no longer trading - there is a wide variety of companies that can provide equivalent services.
What is a personal lease?
A personal lease, or Personal Contract Hire (PCH) is a long-term lease agreement where you lease the vehicle for a set period (usually 2-4 years) with fixed monthly payments. At the end of the contract, you simply return the car.
PCH typically covers the car's depreciation, but doesn’t include ownership. It may also include options like maintenance, servicing, and insurance for an additional cost. This option is ideal for those who prefer driving a new car without the commitment of ownership, while keeping monthly costs predictable.
What is a business lease?
A business lease for a car is a long-term rental agreement where a company leases a vehicle for its use, typically for 2-4 years. The business makes fixed monthly payments for the lease term, covering the car’s depreciation and use, but does not own the vehicle. At the end of the lease, the business returns the car.
Business leases often offer tax benefits, as monthly payments can be deducted as a business expense, and maintenance and servicing options may also be included. This option is ideal for companies looking to provide vehicles to employees without the upfront cost of purchasing them.
What is a salary sacrifice scheme?
A salary sacrifice scheme for cars is an arrangement where employees give up part of their salary in exchange for a car, typically an electric vehicle, provided by their employer. The car is usually offered through a lease agreement, and the employee benefits from lower monthly payments because the cost is deducted from their pre-tax salary. This can reduce their taxable income, potentially leading to tax savings.
The scheme often includes additional benefits, such as maintenance, insurance, and breakdown cover, all bundled into the monthly payment. It’s a popular option for businesses looking to offer employees a cost-effective way to drive a new car.
Key Features to Look for in a Salary Sacrifice Provider
When choosing a salary sacrifice provider for a car scheme, it's important to consider the offerings of various providers in order to find a scheme that works best for your company.
Vehicle Selection
Ensure the salary sacrifice car scheme provider offers a broad range of car models to suit your employee's needs. Providers such as The Electric Car Scheme also offer a wide range of used and nearly new electric cars - which reduce the cost of the lease for your employees and can be delivered within as little as 14 days.
Flexible Terms and Robust Protections
Look for a provider that offers flexible lease terms (e.g. 2 - 4 years) and allows employees to choose the length of the contract, and mileage limits. Ensure that the provider offers protection against early termination to minimise risk to your business.
Maintenance, Support, and Insurance
A good provider should offer maintenance packages that cover servicing, tires, MOTs, and breakdown assistance. This reduces the hassle for employees and ensures the car is well-maintained throughout the lease term. Some providers - such as The Electric Car Scheme - offer them as standard with all leased EVs. Many salary sacrifice schemes also offer fully comprehensive insurance. Check whether the provider offers suitable coverage.
Simplicity and Transparency
The provider should offer a straightforward process for both employers and employees, with clear pricing and easy-to-understand terms. Transparent administration and billing are key - including transparency over the increasing EV BiK rates through the term of the lease.
Customer Service and Support
A provider with excellent customer service can make a big difference in resolving any issues with vehicle delivery, maintenance, or queries about the scheme. You can use services like Trustpilot to learn more about customers’ prior experiences.
Other factors to consider
A good provider will offer resources and support to help employees understand the benefits of the scheme and make informed choices about the cars they want. Check for positive feedback from other businesses or employees who have used the provider. A strong reputation for reliability and service is a good indicator of a trustworthy partner.
Ensure the provider offers a scheme that maximizes tax benefits for employees, with transparent calculations for how salary sacrifice impacts tax, National Insurance contributions, and overall savings
These features will help ensure that both your business and employees get the most value from a salary sacrifice car scheme.
Why Consider The Electric Car Scheme?
As a leading provider of company EV schemes, The Electric Car Scheme aims to make driving an electric car more affordable and accessible than any other option. The Electric Car Scheme’s salary sacrifice solution is free for employers to set up and operate, making it a cost-effective fleet solution. Our Complete Risk Protection has been designed to keep your business covered with a flexible policy, and we now offer The Charge Scheme, which is the cheapest way to charge.
Our company salary sacrifice scheme ultimately helps businesses reduce their emissions while offering significant National Insurance savings to employees.
Benefits for employers:
No Cost
Car Salary Sacrifice should be affordable for all. There is no net cost to your business to set up and run the scheme.
Straightforward Reporting
Simple to use reporting to make life easy for HR and Finance teams.
Complete Risk Protection
We provide market-leading protection from day 1, to safeguard you from unexpected costs if a leased car needs to be returned early.
Benefits for employees:
Best Prices Available
Access to top leasing companies for the best prices for new and used cars, with everything bundled into a simple, cost-effective package that includes maintenance, servicing, tyres and breakdown cover as standard. Fully comprehensive insurance, charger installation, and salary sacrificed charging through our Charge Scheme is also available to employees.
Quick Delivery and Wide Range of Cars
Cars listed on our website are ready for quick delivery - with most cars being available within 14 days.
Trusted 5 Star Service
Serving thousands of customers and rated “Excellent – 5 stars” on Trustpilot, you can rest assured that you are in good hands.
Are you looking to set up The Electric Car Scheme at your company? Get in touch with us!
Making a Smooth Transition
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A company might consider switching salary sacrifice car scheme providers for several reasons - for example - if another provider offers more competitive pricing, better tax efficiency, or lower overall costs - it could result in savings for both the business and its employees.
Likewise, if the current provider doesn’t offer a wide selection of vehicles, a company may want to switch to a provider with a broader range to meet employee demand. Providers with more attractive features, like comprehensive insurance packages, flexible leasing terms, maintenance coverage, or better employee engagement resources, might also make switching more appealing.
Poor reliability, such as delays in vehicle delivery or poor-quality service, may lead to companies seeking a more trusted partner to ensure a smoother experience. If the current provider lacks effective customer service or administrative support, a company might switch to one that offers better responsiveness, ease of use, and ongoing assistance for both employers and employees.
A provider that offers a more user-friendly platform for managing contracts, payments, and communications could be a reason to switch, making the process smoother for HR and payroll departments.
Switching providers can be a strategic decision to enhance the overall effectiveness of the salary sacrifice scheme, providing better value and overall satisfaction for both the company and its employees.
Step-by-step guide for companies looking to switch providers
The process for switching to The Electric Car Scheme for your EV salary sacrifice needs is very similar to our regular onboarding, and our specialists aim to make it as straightforward as possible so that your business can start benefitting from EV salary sacrifice as soon as possible.
Step 1: Talk to us
Talk with one of our Product Specialists to understand how EV salary sacrifice will work in your business, and why you are making the switch from your previous provider.
Step 2: Sign up to The Electric Car Scheme
Our Product Specialists will handle the scheme setup and launch, ensuring a hassle-free process for you. We will liaise with your previous provider to ensure a smooth handover.
Step 3: Launch the scheme
We’ll assign a dedicated Customer Success Manager to support your business with the launch of the scheme - this includes employee webinars, demo days, promotions and more.
Step 4: Ongoing support
Once your scheme is launched our EV Specialist and Customer Success Teams will regularly be in touch to ensure your scheme is an ongoing success. Your employees will then be able to lease their cars through The Electric Car Scheme.
Handling existing agreements
Existing leases will have to run their course to avoid incurring early termination fees but the employees that were signed up through the previous provider will be able to keep their cars, insurance, maintenance, and charger packages. Furthermore, the previous provider should continue providing support to those signed up through their scheme for the duration of the lease, and they should not sign up new employees to their scheme once your business makes the switch to The Electric Car Scheme.
Employees not signed up with the previous provider will be able to sign up through The Electric Car Scheme once the new scheme is launched - and we will handle ongoing support for those customers. Additionally, we will aim to renew expiring leases through our scheme to ensure continuity for your employees.
Support available during the transition
During the transition to The Electric Car Scheme, your business will receive full support to ensure a smooth switch. This includes initial consultations with Product Specialists, who will manage the setup and liaise with your previous provider. A dedicated Customer Success Manager will assist with the scheme launch, including employee webinars and promotional activities and ongoing support from the EV Specialist and Success Teams will ensure the scheme’s continued success.
Employees with existing leases will be supported by the previous provider until their contracts end, with The Electric Car Scheme handling renewals and transitions.
Why act now?
Setting up a salary sacrifice car scheme or switching your salary sacrifice provider now can be a strategic decision for a company looking to capitalise on key market trends and opportunities.
The market for electric vehicles (EVs) is growing rapidly, with more businesses and consumers moving toward sustainability. By offering a salary sacrifice car scheme, companies can add a highly competitive employee benefit to their portfolio - for no cost through The Electric Car Scheme. Additionally, the government continues to offer various incentives for electric vehicles such as a low BiK tax of 2%, which reduces the overall cost of driving an electric car, and saves employees money.
The electric vehicle market is evolving, with more models becoming available across different price ranges. While some manufacturers have longer wait times for new EVs, there are still plenty of options on the market now, including popular models like the Polestar 4, Nissan Leaf, and Hyundai Kona Electric - with The Electric Car Scheme covering most of the available EV models.
Electric vehicles produce significantly fewer emissions compared to petrol or diesel cars. By switching to EVs, businesses not only align with environmental goals - such as the UK’s Net Zero target - but also demonstrate their commitment to reducing pollution and improving air quality. This can enhance the company’s reputation and appeal to employees and customers who prioritize climate-friendly practices.
Fuel prices have seen significant fluctuations in recent years, and with growing concerns over future energy costs, electric vehicles present a more predictable and often cheaper alternative. With EVs, employees benefit from much lower fueling costs (electricity versus petrol or diesel), which can make a substantial difference to their overall vehicle expenses.
Setting up a salary sacrifice car scheme now offers a win-win for companies and employees. The growing availability of electric vehicles, combined with tax benefits, environmental impact considerations, and the financial advantages of lower fueling costs, make this an opportune moment to implement such a scheme.
It’s a smart move that supports sustainability, offers tangible cost savings, and helps businesses attract and retain talent in an increasingly green-conscious market.
Are you looking to set up The Electric Car Scheme at your company? Get in touch with us!
Switching to an electric car is one of the most significant ways you can make a positive change towards net zero. We want to make it cheaper and easier than any other option. Salary sacrifice makes this possible, allowing employees to save 30-60% on any electric car by reducing their salary in exchange for an electric car as a benefit. This makes electric cars an affordable option for everyone. You can calculate your savings by heading to The Electric Car Scheme’s quote tool - choose your lease terms and the car of your dreams and get a personalised quote!
Last updated: 05.02.25
