Salary sacrifice car schemes continue to grow in popularity across the UK, particularly as more businesses look to offer electric and low-emission vehicles to their employees.
For drivers, salary sacrifice allows access to a new car through their employer in a tax-efficient way, often with maintenance, servicing and insurance included.
In 2026, electric vehicles remain the most popular choice for salary sacrifice, but we are also seeing increasing interest in plug-in hybrids — especially from drivers who want flexibility for longer journeys.
At Cocoon Vehicles, our Salary Sacrifice Car Scheme is slightly different from many providers, as it can be paired with shorter-term agreements, allowing drivers to change vehicles more frequently rather than committing to the same car for three or four years.
Below are some of the most popular company cars currently chosen through salary sacrifice.
Top 10 Salary Sacrifice Cars
See below our Top 10 most popular cars from enquiries and orders on our Salary Sacrifcie Scheme:
BMW i5 Touring
The BMW i5 Touring has quickly become one of the most popular executive electric vehicles for salary sacrifice.
It offers the comfort of a 5 Series, the practicality of an estate and the benefits of electric driving.
Why it works well:
Fully electric executive car
Ideal for motorway driving
Large boot space for business travel
Excellent benefit-in-kind rates
It is particularly popular with company directors and high-mileage drivers.
Mercedes-Benz EQA
The Mercedes-Benz EQA remains one of the easiest electric cars to live with on a salary sacrifice scheme.
The Urban Edition offers strong specification and a comfortable driving experience.
Key advantages:
Compact SUV size
Smooth electric performance
Premium interior
Low tax rates through salary sacrifice
BMW i4 Gran Coupe
The BMW i4 has become one of the most popular electric company cars in the UK.
It combines the look of a coupe with the practicality of a four-door saloon, making it ideal for business users.
Reasons drivers choose the i4:
Strong electric range
Excellent motorway comfort
Premium interior quality
Very competitive BIK rates
BYD Seal Saloon
The BYD Seal is gaining popularity as an alternative to traditional executive EVs.
It offers impressive performance, strong range and a high level of technology.
Why it’s becoming popular:
Powerful electric drivetrain
Modern interior technology
Competitive pricing for salary sacrifice
MINI Aceman
The Mini Aceman is a newer electric model that suits drivers looking for something compact but premium.
It works particularly well for urban drivers using salary sacrifice.
Highlights include:
Compact size
Distinctive styling
Strong technology features
BMW iX1 and iX2 Shadow Line
The BMW iX1 and BMW iX2 have become popular with drivers who want a premium electric SUV without moving into larger models.
Reasons they suit salary sacrifice:
Electric efficiency
Practical SUV layout
Strong specification levels
BMW iX SUV
The BMW iX sits at the luxury end of the electric SUV market.
It is often chosen by directors and senior staff through salary sacrifice schemes.
Key benefits:
Large interior space
Long electric range
High specification
Polestar 4
The Polestar 4 is another EV gaining interest in 2026.
Its modern design and strong electric performance make it appealing for company car users.
Why drivers like it:
Modern styling
Strong performance
High-tech interior
Plug-In Hybrid Salary Sacrifice Cars
While electric cars dominate salary sacrifice schemes, plug-in hybrids remain popular with drivers who want the ability to travel long distances without relying entirely on charging.
Popular choices include:
Model | Type | Why Popular |
|---|---|---|
BMW X3 30e M Sport | PHEV | Balanced performance and efficiency |
BMW X5 50e M Sport | PHEV | Large executive SUV |
Jaecoo 7 | PHEV | High spec at good value |
Chery Tiggo 8 | PHEV | Spacious family SUV |
Mercedes-Benz GLC 300e | PHEV | Premium hybrid SUV |
Plug-in hybrids can work well for drivers who want electric driving for short trips but still need petrol power for longer journeys.
A Different Approach to Salary Sacrifice
Many salary sacrifice schemes require drivers to commit to the same car for three or four years.
At Cocoon Vehicles, our scheme can also work with shorter-term agreements, allowing drivers to change vehicles more regularly.
This can be particularly useful for:
businesses testing electric vehicles
drivers unsure about long-term EV ownership
employees who prefer flexibility
companies with changing vehicle needs
We have also expanded our short-term car lease range, giving customers more choice than ever before.
Final Thoughts
Salary sacrifice continues to be one of the most tax-efficient ways for employees to access a new vehicle, particularly when choosing electric or plug-in hybrid models.
From executive estates like the BMW i5 Touring through to electric SUVs such as the Mercedes EQA and BMW iX, there are more options available in 2026 than ever before.
If you would like to learn more about the vehicles available through our salary sacrifice scheme, please call the team on or complete the ENQUIRY FORM at the bottom of this article.
When considering why you should choose Cocoon Vehicles for your short-term vehicle requirements, our approach is built around flexibility and honest advice. As a family-owned business with consistently strong customer reviews, we are striving to become one of the best car subscription and salary sacrifice providers in the UK for both business and personal customers.
We also support a range of specialist vehicle requirements, including:
Salary Sacrifice schemes for businesses and employees
Expat vehicle leasing for those moving to or returning to the UK
Support for companies with overseas directors or shareholders
