New data from the British Vehicle Rental & Leasing Association (BVRLA) has revealed a 166% year-on-year increase in used car contracts and a surge in leasing activity for second-hand electric vehicles (EV).
In the three months to June 2025, leasing companies reported a 7,000% year-on-year rise in salary sacrifice leases for used vehicles (to 3,990 cars) and a 174% increase in business contract hire (to 33,131 cars), signalling that re-leasing used EVs is fast becoming one of the strongest growth areas in the automotive market.
Leasing firms are increasingly viewing the re-lease of used EVs — especially ex-fleet electric cars — as a solution to both steep depreciation and limited affordability in the new car market, the association said. While volumes remain below those of new contracts, the pace of growth indicates a shift from niche to mainstream as used EV supply expands and consumer interest builds, it added.
Sales of pre-owned EVs have grown by 48% in the year-to-date between 2024 and 2025 – a higher rate of growth than recorded for HEVs (+29%) or PHEVs (+12%) 3 – and researchers predict that by 2030, 31% of all used car sales will be EVs. The data comes during Used EV Week, which is highlighting how today’s pre-owned EVs offer strong performance retention, long warranties, and substantial running-cost savings.
The average five-year saving for a used EV buyer charging mainly at home is £5,317, compared with an equivalent petrol car, and even for drivers using mostly public charging, the saving averages £3,573. In addition, a wide range of finance, charging, and servicing options now make EV ownership accessible to drivers who may not have off-street parking or the means to buy new.
Toby Poston, Chief Executive at BVRLA, said:
“The used vehicle market is four times the size of new. 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. 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.”
Fiona Howarth, CEO at Octopus Electric Vehicles, said:
“It’s amazing to see how quickly the EV market has evolved. When we first introduced used EVs on salary sacrifice, the goal was simple; make clean driving accessible to more people. Now, that’s exactly what’s happening. EVs are built to last, with batteries holding their power year after year.
“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.”
Tanya Sinclair, CEO of Electric Vehicles UK:
“For most people, the used market will be their first step into electric. These cars aren’t compromises; they’re high-performing, affordable, and environmentally responsible choices. Supporting this part of the market means ensuring that every driver can be part of the transition, not just those buying new.”
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