OWNER ANSWER
Salary sacrifice, PCP, lease, loan or cash: compare the whole BYD deal
A UK buyer checklist for comparing like-for-like quotes, not a claim that one funding route is always cheapest.
Compare the same BYD specification, term and annual mileage across your actual written quotes. The monthly figure alone does not tell you what you will own, what is included or what it costs to leave. This is general information, not financial or tax advice; ask a suitably qualified adviser about your circumstances.
Salary sacrifice: what changes?
You agree to give up contractual cash pay for an employer benefit. HMRC says the tax result depends on the arrangement; qualifying low-emission cars use the normal benefit-in-kind rules rather than assuming the car is tax-free. Ask payroll for the actual net-pay effect, benefit charge and pension/statutory-pay treatment. Get written terms for leaving employment, absence or changing hours. Insurance, tyres and servicing are included only if the scheme says so.
PCP: when would I own the car?
There are usually an upfront payment, monthly payments and an optional final payment to buy the car. Budget for that last payment if ownership is your aim. Before choosing to return or change the car, check the agreement’s mileage, condition and end-of-term terms. Do not assume equity in the car is guaranteed.
Personal contract hire: what am I paying for?
PCH is normally a fixed-term hire with an initial payment and monthly rentals, not a purchase. You usually return the car with no purchase option. Check mileage penalties, damage standards and the included services. Obtain the early-exit charge in writing; returning the vehicle does not necessarily end payment obligations without a cost.
Personal loan: what remains after selling?
An unsecured personal loan can fund buying the car while you repay the lender separately. You own the car, but selling it does not cancel the loan. Compare the actual total repayable and settlement terms; resale value might not cover the outstanding balance.
Cash: is the purchase price the whole cost?
Cash avoids borrowing interest but uses savings up front. Budget separately for running costs and consider the emergency funds left afterwards. You bear changes in resale value. A cash purchase and a rental are different outcomes, so do not compare their monthly figures as though both leave you owning the same asset.
- MyBYD comparison method: obtain written quotations for the same model, trim, term, annual mileage and delivery assumptions. Record whether the vehicle is new or used and what ownership outcome each quote provides.
- List upfront payments, scheduled payments, fees and the final payment if you intend to buy. For salary sacrifice, use the employer’s actual net-pay and tax illustration, not a generic percentage saving.
- Add excluded insurance, servicing, tyres, breakdown cover and charging. Identify mileage and condition charges separately rather than pretending they are certain costs for every driver.
- Write down the early-exit and employment-change conditions. Check who pays if the car is returned, written off or unavailable. Ask the provider to clarify anything explained only verbally.
- Compare both total cost and end position: car owned, car returned or continuing debt. Keep the agreement and illustration, and pause for qualified advice if a material condition remains unclear.
Is salary sacrifice always the cheapest option?
No universal conclusion is supported here. A different allowance, deposit, term, included cover or ownership outcome can change the comparison. This checklist deliberately does not calculate tax savings, recommend a lender or predict future resale prices.
Does the choice affect salary-linked benefits?
HMRC explains that employers can use notional or reduced pay for earnings-related arrangements; the treatment should be made clear. Salary sacrifice can also affect statutory or other benefit entitlements. Ask your employer and scheme provider for the treatment that applies to you.
HMRC · Salary sacrifice for employers · current guidance checked 6 October 2026
Open sourceMoneyHelper · How to buy a car · checked 6 October 2026
Open sourceMoneyHelper · Leasing with Personal Contract Hire · checked 6 October 2026
Open source