Electric vehicles are becoming increasingly more popular for leasing options as new data shows a staggering 166 per cent year-on-year increase in used car contracts.
As companies and organisations take additional steps to meet their environmental and sustainability goals, electric vehicles are becoming more popular.
New research has found that leasing companies reported a 7,000 per cent year-on-year rise in salary sacrifice leases for used vehicles in the three months to June 2025.
The British Vehicle Rental and Leasing Association (BVRLA) also found that there was a 174 per cent rise in business contract hire, taking the total to 33,131.
Leasing firms are looking to re-lease second-hand electric vehicles at an increasing rate as a solution to reduce depreciation rates.
Commenting on the new data, Toby Poston, chief executive of the BVRLA, highlighted how the used vehicle market is four times the size of the new market.
He added: "It underpins the entire zero-emission ecosystem and is the single biggest factor that could undermine the UK's transition.
"It needs stability to succeed. By supporting second and third owners, we also support the first.
An ever-increasing number of drivers are making the switch to used electric vehicles
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"In doing so, we can protect value throughout the vehicle's life, making EVs affordable to more households and ensuring sustainability isn't just environmental but economic."
The pre-owned electric vehicle market has also grown massively in recent months, with a 48 per cent jump in sales between 2024 and 2025.
Experts from LV=GI suggest that as much as 31 per cent of second-hand car sales will be electric vehicles at the end of the decade.
This will coincide with the ban on new petrol and diesel vehicles, after which only zero emission vehicles will be sold after 2035.
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Fiona Howarth, CEO of Octopus Electric Vehicles, described the rapid growth of second-hand electric vehicle sales as "amazing".
She added that when Octopus EV introduced used EVs on the salary sacrifice market, the organisation wanted to make clean vehicles accessible to more drivers.
"Many drivers are used to buying second-hand, so giving them the same confidence and support as new-car owners is key to building a fair, thriving electric market," Howarth added.
It comes as the UK celebrates Used EV Week, which runs between October 20 and 24, with experts praising the long warranties and significant running cost savings available.
The second-hand electric vehicle leasing market continues to grow year-on-year
| GETTYOn average, a used EV buyer charging mainly at home can save £5,317 compared to an equivalent petrol car.
Even people who do not have access to off-street parking can make major savings. Someone using mostly public charging can still save more than £3,500.
Tanya Sinclair, CEO of Electric Vehicles UK, acknowledged how many people would first be able to switch to an electric vehicle through a second-hand model, noting its importance in the UK market.
She explained: "As a driver of multiple EVs over the years, I know first-hand that these cars aren't compromises; they're high-performing, reliable and affordable."