Demand for leased secondhand electric cars has surged in the UK over the past year, as drivers look for cheaper alternatives amid steep rises in petrol prices.
According to the British Vehicle Rental and Leasing Association (BVRLA), used electric car leasing among its members has risen by 170% over the past twelve months. The trade body’s members buy around half of all new vehicles registered in the UK each year for onward leasing, giving the figure real weight across the wider market.
The growth has been helped along by two things happening at once: a rapidly growing pool of secondhand electric cars, as vehicles bought new by early adopters filter through into the used market, and a sharp rise at the pumps. Petrol prices have climbed steeply since the US and Israel launched attacks on Iran back in February, making the running-cost gap between electric and petrol cars more noticeable for everyday drivers.
Salary sacrifice schemes, which let people lease a car by deducting the cost from their gross salary before tax, have played a particularly big role. The BVRLA said the number of secondhand EVs leased this way has risen fivefold in the past year, while personal contract hire for used electric cars is up almost sixfold. Individual providers report even sharper growth: Octopus Electric Vehicles recorded 122% year-on-year growth to June, while the Electric Car Scheme said its used EV leasing has more than tripled since launching in 2024.
For drivers weighing up whether now’s the time to make the switch, the maths increasingly points toward used rather than new. Octopus EV’s chief executive Gurjeet Grewal said drivers get the same technology and running costs as a new lease, but for around £60 to £70 less a month on average — with some models saving up to £200. That’s a meaningful difference for anyone doing serious mileage for work.
One thing still holding used leasing back, according to the Electric Car Scheme’s Thom Groot, is that benefit-in-kind tax is calculated on a car’s value when new — even if you’re leasing it secondhand. That’s worth bearing in mind if you’re comparing quotes and wondering why the tax treatment doesn’t feel as generous as the headline saving suggests.
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