Salary sacrifice leasing up almost 165% as used EV demand grows
BVRLA data shows salary sacrifice volumes up almost 165% year on year in the first quarter of 2026, while Tusker says deliveries through its used EV scheme are up more than 500%. Here is what that means if you are thinking of joining a scheme.
Quick answers
- Salary sacrifice was the fastest-growing leasing product in the first quarter of 2026, up almost 165% year on year, according to the BVRLA's Leasing Outlook report published in July 2026.
- The BVRLA lease fleet grew 7.2% year on year to 2,052,673 cars and vans, with business contract hire up 6.1% and personal contract hire broadly flat.
- Tusker's September 2026 update says deliveries through its Pre-loved (used) scheme are up more than 500%, with over 3,500 Pre-loved orders in the first seven months of 2026, up 350% year on year.
- Tusker says used EV drivers pay around £130 a month less than for a new equivalent, and 77% of its employer customers offer the Pre-loved scheme. These are Tusker's own figures.
- Company car tax on EVs is 4% in 2026/27, 5% in 2027/28, then 7% in 2028/29 and 9% in 2029/30, so the rate depends on the tax year, not the date you sign.
Salary sacrifice leasing grew by almost 165% year on year in the first quarter of 2026, according to the BVRLA’s Leasing Outlook report, published in July 2026 (BVRLA). Tusker says deliveries through its used EV scheme are up by more than 500%. If your employer offers a scheme, you are choosing at a point when demand is high and tax rates on EVs are about to start climbing.
How big is the salary sacrifice growth?
The BVRLA’s leased fleet of cars and vans grew 7.2% year on year in the first quarter of 2026 to 2,052,673 vehicles, with business contract hire up 6.1% and personal contract hire broadly flat (Business Motoring). Salary sacrifice is the part of the market moving fastest. The BVRLA reported growth of 125% for 2025 (Fleet World).
| Measure | Figure |
|---|---|
| Salary sacrifice growth, Q1 2026, year on year | Almost 165% |
| BVRLA leased fleet, Q1 2026 | 2,052,673 vehicles |
| Fleet growth, year on year | 7.2% |
| Business contract hire growth | 6.1% |
| Personal contract hire | Broadly flat |
Source: BVRLA Leasing Outlook (July 2026), as reported by the BVRLA and Business Motoring.
Personal contract hire was broadly flat while employer schemes, which cut the tax you pay on the monthly cost, grew fastest. For how the schemes work, see our guide to how EV salary sacrifice works.
Why are leasing firms nervous?
The BVRLA’s July 2026 report headlined growth alongside pressure on leasing margins, and the BVRLA has long warned about EV residual values, the price an EV fetches when it returns from lease (BVRLA). We could not confirm the exact wording or speaker of the Q1 2026 warning. Lessors set monthly payments partly on residual forecasts, so weak used prices squeeze their margins. The BVRLA also says used vehicle leasing is expanding, giving two and three-year-old EVs an outlet.
Used EV salary sacrifice takes off
In September 2026 Tusker said deliveries through its Pre-loved (used car) scheme had risen by more than 500%, with over 3,500 Pre-loved orders in the first seven months of 2026, up 350% year on year, and over 5,000 Pre-loved cars on the road. It also says 77% of its employer customers now offer the scheme (Tusker). Tusker’s earlier release said used cars made up around 12% of new orders since it fully launched the offer at the start of 2025 (Tusker). These are the company’s own figures and the exact comparison period for the 500% is not stated in the sources we could read.
The appeal is price. In that earlier release Tusker said drivers who choose a used EV pay around £130 a month less than for a new equivalent, and that many use the saving to step up to a more premium model than they would otherwise afford. Our used electric car salary sacrifice guide explains how the arrangement works and what to check before signing.
What does company car tax do next?
Salary sacrifice cars are taxed as benefits in kind, so the rate matters. Published tables put fully electric cars at 4% of list price in 2026/27 and 5% in 2027/28, rising to 7% in 2028/29 and 9% in 2029/30 (Electric Car Scheme). The rate that applies is set by the tax year, not your contract, so a four-year agreement started now will see the rate rise during its term. Our company car tax guide and BiK calculator show how that changes your monthly cost.
| Tax year | EV benefit-in-kind rate |
|---|---|
| 2026/27 | 4% |
| 2027/28 | 5% |
| 2028/29 | 7% |
| 2029/30 | 9% |
Salary sacrifice or the Electric Car Grant?
If you are buying outright instead, the grant is the alternative route. Our comparison of the Electric Car Grant and salary sacrifice sets out when each wins. Salary sacrifice tends to suit higher earners, who save more tax, as our guide for high earners explains.
What this means for you
If your employer offers a scheme, compare a new and a used quote for the same monthly budget, since Tusker’s average saving of £130 a month may buy a higher-spec car. Check the early termination terms and what happens if you leave your job, covered in our guide to leaving your employer mid-contract. Work out your cost at the 2028/29 and 2029/30 benefit-in-kind rates, not just today’s 4%, because a long agreement will straddle them.
How we test and where our numbers come from
Range figures are official WLTP combined values taken from manufacturer UK specification pages, with real-world estimates drawn from independent comparative testing. Prices are UK list prices at the time of the latest update. Tax, grant and charging-scheme figures come from GOV.UK and HMRC publications. We re-check every guide when pricing, specification or policy changes. Last checked 6 October 2026.
Frequently asked questions
How fast is salary sacrifice growing in the UK?
The BVRLA's Leasing Outlook report, published in July 2026, says salary sacrifice volumes rose by almost 165% year on year in the first quarter of 2026. The BVRLA's wider lease fleet grew 7.2% to 2,052,673 cars and vans over the same period.
Is a used EV through salary sacrifice cheaper than a new one?
Tusker says drivers choosing a used EV through its scheme pay around £130 a month less than for a new equivalent. That is one provider's average from its own data, so compare quotes for the specific cars you are considering.
What company car tax rate will I pay on a salary sacrifice EV?
Benefit in kind on fully electric cars is 4% of list price in 2026/27 and 5% in 2027/28. It then rises to 7% in 2028/29 and 9% in 2029/30, according to published company car tax tables.
Why are leasing firms worried about the growth?
The BVRLA has repeatedly warned about EV residual values, the amount an EV is worth when it returns from lease. Weak used values squeeze lessor margins. We could not confirm the exact wording of the July 2026 warning, so read the BVRLA report for its detail.
Sources and further reading
- bvrla.co.ukBVRLA Leasing Outlook, July 2026Primary source referenced in this article.
- businessmotoring.co.ukBVRLA lease fleet up 7.2% year-on-year in Q1 2026Fleet size, business contract hire growth and personal contract hire.
- fleetworld.co.ukUK leasing fleet hits new high as salary sacrifice soars 125%, BVRLA revealsThe 2025 salary sacrifice growth figure that preceded this year's rise.
- tuskercars.comPre-Loved Electric Cars: Salary Sacrifice Demand SoarsTusker's September 2026 figures: 500% delivery growth, 3,500 orders, 77% of employers.
- tuskercars.comPre-loved / Salary Sacrifice: Tusker sees used EVs accelerate into 2026Tusker's earlier release: used cars around 12% of new orders and about £130 a month cheaper.
- electriccarscheme.comPHEV vs Electric Company Car BiK Rates 2026/27 to 2029/30EV benefit in kind rates from 2026/27 to 2029/30.
EV Compared
The EV Compared editorial team tracks the UK electric vehicle market full time: new model launches, list prices, WLTP and real-world range, public charging tariffs and the tax rules that decide what an EV actually costs to run. Every guide is checked against manufacturer specifications and official GOV.UK figures, and updated whenever the numbers move.
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