New cars just keep getting more expensive. That's why many drivers take advantage of company car and salary sacrifice schemes offered by their employers.
The latter especially can be quite the money saver, because the car payments come out pre-tax. Of course, there are caveats. You will never actually own the car outright, and you must pay benefit-in-kind tax.
But when compared with PCP, HP or private leasing, these schemes can be vastly cheaper. That's why last year more than a million new cars sold in the UK went through them.
It's therefore a no-brainer for car makers to ensure certain models fit into that space. Electric cars are by far the most advantageous, incurring just 3% BIK tax, but for those who can't or don't want to make the switch, there are now some plug-in hybrids with very low official emissions, not to mention official MPG figures that look like typos (yes, 850mpg is correct).

Prominent among these is my long-term test car, the Volkswagen Golf GTE. If you are after a sporty hatchback and have a reasonable budget, you will inevitably look at a Golf.
The GTE packs 268bhp and can hit 62mph in 6.6sec, while the GTI makes 7bhp less but is lighter and so completes the sprint in 5.9sec. The GTE costs £40,140, the GTI £40,870.
It's a close-run thing, then, so what's the answer? All things being equal, you would pick the GTI: it's simply the better driver's car. But if you're a salary sacrifice buyer, the GTI occupies one of the highest BIK tax brackets, while the GTE falls into one of the lowest. GTE owners as a result pay £155 a month in BIK tax and GTI owners £243, or about a grand extra a year.









