Used EV Personal Leasing Up 484%: How It Works in the UK

Used electric cars are now a fast-growing part of the UK leasing market. The BVRLA says used EV personal contract hire rose 484% over the past year, used EV salary sacrifice rose 474% and used business contract hire rose 50% (Renewable Energy Magazine). For private drivers, it means a two or three-year-old EV on a monthly rental, which Tusker says costs less per month than a new car. Demand is strong too, as our report on used EVs being the fastest-selling cars on Autotrader shows.

Why used EV leasing is growing

The supply comes from returned fleet and lease cars. The BVRLA said in July that used vehicle leasing is growing quickly through salary sacrifice and personal leasing, which gives leasing companies an outlet for two and three-year-old EVs (BVRLA). Rather than sell a returned car at auction, the lessor relends it.

Demand is there too. Tusker says its Pre-loved salary sacrifice deliveries are up more than 500% in 2026, with over 5,000 such cars on the road and 77% of its employer customers offering the option (Tusker). Salary sacrifice provider Gensen has also extended its offer to used EVs (BCF Wessex).

Used lease type	Year-on-year growth
Used EV personal contract hire	484%
Used EV salary sacrifice	474%
Used EV business contract hire	50%

Source: BVRLA figures, as cited by Renewable Energy Magazine.

How used personal contract hire and salary sacrifice work

Both are rentals, not purchases. You pay a monthly fee for a set period, then return the car. The difference is who pays and how.

• Used personal contract hire: you contract directly with a leasing company and pay from your net income. Brokers such as Gateway2Lease list quality-checked used cars for personal and business leasing.
• Used salary sacrifice: your employer leases the car and deducts the cost from your gross pay, so tax and National Insurance savings apply. It is only available if your employer runs a scheme. Our guide to salary sacrifice on a used electric car covers the rules, and salary sacrifice versus personal lease compares the two routes.

What does it cost compared with new?

Tusker says Pre-loved cars give a salary sacrifice driver a lower monthly amount than a new car (Tusker). We could not verify a specific average saving. Its data shows basic-rate taxpayers more likely to choose premium models such as the Tesla Model Y, BMW 4 Series and Audi Q4 e-tron, so the saving is often spent on a better car rather than a lower bill.

Savings vary, so check quotes for the exact car, term and mileage. For the wider case against buying outright, see leasing versus buying an EV.

Who is it for?

A used lease suits drivers who want a recent EV on a fixed monthly cost and do not want to own a car that has already lost its steepest depreciation. It suits less well if you want to keep the car, modify it or drive beyond the agreed mileage. Salary sacrifice, where available, adds the tax advantage, but it ends if you leave your job, as our guide to what happens if you leave explains. The growth figures also show the market is young, so terms and checks vary between providers.

What about warranty and battery health?

Because you return the car, you carry less long-term battery risk than a buyer. Most manufacturers warrant batteries to at least 70% State of Health for eight years or 100,000 miles, and the Generational index of more than 8,000 UK vehicles found an average of 95.15%, so the average tested car sits well above that floor (Renewable Energy Magazine). Our EV warranties explainer shows what each cover includes.

Confidence is the weak point. Only 3% of drivers said they felt confident buying a used EV, and 38% said an independently verified battery health certificate would raise their confidence (Renewable Energy Magazine). If a lessor will not tell you the battery’s State of Health, treat that as a reason to ask harder.

What this means for you

If you want a newer EV without a large deposit, a used lease is now a mainstream option rather than a niche one. Ask your employer first whether a pre-owned salary sacrifice scheme exists, as the tax treatment usually beats a personal lease.

Before you sign, ask five things:

1. The car’s age, mileage and battery State of Health.
2. How much of the manufacturer warranty remains.
3. Whether a battery health certificate is available; our guide to getting one explains how.
4. The end-of-contract rules on damage and excess mileage.
5. The monthly cost against a new equivalent.

Use our used EV battery checks as your list at the handover.