General information only — not financial or tax advice. Obtain a regulated illustration and check current HMRC treatment for your circumstances.
Questions worth answering before you decide
- What is the total cost across the full term?
- Which services and insurance are included?
- What happens if I leave my employer or need to exit early?
- Who carries depreciation and resale risk?
- What are the mileage and condition charges?
- Will the agreement affect pension, benefits or borrowing?
Compare the routes, not just the monthly payment
Salary sacrifice can bundle costs but depends on employer rules and tax treatment. PCP has a final payment and mileage conditions. Leasing does not normally leave you with the car. A loan or cash purchase gives you ownership but exposes you to resale risk. Compare the full agreement, not one headline figure.