When Anthony Santos sought a substitute for his Audi Q3 diesel SUV, he hesitated to consider an electric vehicle.

“We thought about it, but it didn’t seem right for us,” shared Mr. Santos, a sales manager at Liverpool’s RWinvest. However, as I explored my options, the chance to lease a pre-owned electric vehicle (EV) piqued my interest.

Just a few years back, finding a used EV, let alone leasing one, was quite challenging, but that’s changing swiftly.

Currently, there are one million EVs on UK roads, with early adopters’ vehicles making their way to the second-hand market.

EVs typically depreciate faster than petrol or diesel cars, which is problematic for leasing firms, rental companies, and corporate fleet managers. However, this means consumers can access more affordable lease deals.

Used car leases in the UK surged by 166% in Q2 2025 compared to the previous year, with electric vehicles driving this growth, according to the British Vehicle Rental and Lease Association (BVRLA).

“Three years ago, leasing used EVs was minimal due to a lack of supply,” stated Tom Groot, CEO of Electric Car Scheme. Now, used EVs comprise almost half of their business, up from about 15% in 2024.

At Octopus EV, the UK’s largest energy provider, the number of used EV leases has doubled over the past year.

Additionally, leading leasing firms like Lloyds Banking Group’s Lex Auto Lease, BNP Paribas’ Arval, and independent group Zenith are now offering leases for used EVs.

New electric car prices average around £50,000, making them unaffordable for many UK residents. In response, the government initiated a subsidy scheme last summer, while the used market offers a more accessible path to electric vehicle ownership.

Santos found he could lease a lightly used Mercedes-Benz EQA without any down payment. Through his company’s electric vehicle scheme, he opted for a salary sacrifice and ended up paying £360 per month for a car typically priced at £570.

“We had no savings; the tax benefits were a game changer,” says Santos. “That’s what motivated me.”

Lease Structure

Leasing a car generally involves monthly payments over two to three years, allowing individuals to avoid a hefty upfront cost. This often includes not just the car’s cost but also road tax, breakdown assistance, service, maintenance, etc., although insurance is typically separate.

Leasing a used EV is significantly cheaper than acquiring a new one, even if it’s only a few years old and well-maintained. This opens up pricier models at more budget-friendly rates, making it easier for those on lower incomes to shrink their carbon footprint.

For example, leasing a new Skoda Enyak SUV starts at approximately £567 monthly, but for a used version, it can drop to £292 with a salary sacrifice. Volkswagen’s ID.4 SUV similarly goes from £506 to £296 monthly, representing a 42% decrease.

However, not all expenses are covered by the owner. Lessees could incur charges for damages that exceed ordinary wear and tear and may face excess mileage fees. A 10p per mile overage might seem trivial, but frequent drivers should consider the potential extra charges upon car return.

Salary Sacrifice

Top deals are often exclusive to employees in salary sacrifice programs. This arrangement allows costs to be deducted from pre-tax salaries, effectively lowering tax obligations. Savings vary by tax bracket—20% for basic rate taxpayers, 40% for higher rate taxpayers (earning between £50,271 and £125,140), and up to 45% for those with even higher incomes.

Ian Hughes, CEO of Zenith Group’s corporate and consumer business, noted that salary sacrifice significantly helps transition to electric vehicles by providing tax benefits through reduced National Insurance contributions for employers.

Salary sacrifice programs are available from a variety of employers, ranging from small businesses to major corporations like HSBC, BT, and Jet2, as well as multiple NHS Trusts. Typically, there are no costs to the employee, but the employer is liable to pay the scheme provider the equivalent of tax savings.

Employers may impose conditions, such as a minimum employment term or a base salary threshold. Additional eligibility checks ensure lessees can manage the monthly payments.

For those without access to a salary sacrifice scheme, alternatives exist. Carwow’s Leasey leasing service, for instance, provides used EVs. A 2022 Mini Cooper S electric car with 17,400 miles costs £256 monthly. While higher than the £209 for those in employer schemes, it’s still more affordable than the £310 monthly rate (plus a £3,000 upfront fee) for a new model from Mini.

Gary Comerford of the EV Thoughts Podcast described his experience leasing a used EV as “very smooth”, though not perfect. While unable to test drive before signing through Car360, he had a no-questions-asked return policy within a week. He deposited £1,200 and is paying £310 monthly for his 2021 Polestar 2.

“As long as you stay within your budget, getting a rental agreement is straightforward,” Comerford noted but added concerns about tax benefits being exclusive to salary sacrifice schemes, which he felt was unfair to self-employed individuals like himself.

Extras like insurance, home chargers, and even electricity can often be bundled in with the car leasing, sometimes offering additional tax benefits via salary sacrifice.

At lease end, you’ll usually decide to extend the lease or return the vehicle, with some firms presenting a purchase option. However, be cautious—early returns often attract termination fees, though some salary sacrifice terms may waive fees if leaving due to job changes.

According to Zenith’s Hughes, leasing a used EV can greatly facilitate the transition to electric vehicles if structured properly. “It significantly lowers the entry cost from an affordability perspective,” he remarked, referring to their new used EV salary sacrifice plan that “balances taxpayer savings.”

Combatting Depreciation

Leasing companies aren’t offering these deals out of goodwill. By providing used EVs, they’re mitigating the dreaded issue of depreciation. They acquired many electric cars at inflated prices in previous years, but the overall demand drop has led to unexpected price falls.

BVRLA CEO Toby Poston indicated leasing firms now face an abundance of rapidly depreciating cars. They prefer to lease rather than sell at significant losses.

By maintaining ownership of electric vehicles, leasing firms can keep profiting. Industry experience demonstrates that EVs generally require fewer repairs compared to gasoline or diesel vehicles, thus reducing large maintenance bills over time.

Hughes anticipates that Zenith cars will likely go through two to three drivers over an eight-year period before being sold, potentially minimizing residual loss. Addressing common concerns, he emphasized that significant battery degradation is “not a significant issue” for standard vehicles, as most EVs come with an eight-year battery warranty, covering leased cars as well.

The lower likelihood of costly breakdowns makes it easier to provide leases since there’s “less risk involved,” noted Poston. At the same time, there’s “an overproduction of vehicles globally,” leading to remarkable bargains currently available.