Hello, Champions of Net Zero!

The UK’s used vehicle leasing market is witnessing a remarkable transformation, characterised by a staggering 166% year-on-year increase in used car contracts, alongside a notable rise in leasing activity for second-hand electric vehicles (EVs). This surge reflects a significant shift in consumer behaviour and market dynamics, positioning the re-leasing of used EVs as one of the most promising growth sectors within the automotive landscape.

Recent data released by the British Vehicle Rental and Leasing Association (BVRLA) for the three months leading up to June 2025 reveals a phenomenal 7,000% increase in salary sacrifice leases for used vehicles, which equates to approximately 3,990 cars. Additionally, there has been a remarkable 174% rise in business contract hire, reaching a total of 33,131 cars. These figures underscore the growing momentum behind the re-leasing of used EVs, as more consumers and businesses recognise the value and affordability of this market segment.

Leasing companies are increasingly viewing the re-lease of used EVs, particularly ex-fleet electric cars, as a vital solution to the challenges posed by steep vehicle depreciation and the high costs associated with new cars. While the volumes of used EV leases currently remain below those of new contracts, the rapid pace of growth signals a significant transition from a niche market to a mainstream alternative, driven by an expanding supply of used EVs and a burgeoning consumer interest.

Toby Poston, Chief Executive at BVRLA, emphasised the importance of the used vehicle market, stating, “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.”

In fact, more than half of drivers contemplating the purchase of an electric vehicle within the next two years are leaning towards pre-owned options. This trend indicates that the used market is rapidly becoming the gateway to zero-emission motoring for a significant portion of UK households, making electric mobility more accessible than ever before.

Fiona Howarth, CEO at Octopus Electric Vehicles, remarked on the swift evolution of the EV market: “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.”

Sales of pre-owned EVs have surged by an impressive 48% in the year-to-date between 2024 and 2025, significantly outpacing the growth of hybrid electric vehicles (HEVs) at 29% and plug-in hybrid electric vehicles (PHEVs) at 12%. Researchers predict that by 2030, a remarkable 31% of all used car sales will consist of EVs, highlighting a shift in consumer preferences towards more sustainable options.

This new data has been published in conjunction with BVRLA’s Used EV Week, running from 20-24 October, which aims to showcase the strengths of today’s pre-owned EVs. These vehicles offer impressive performance retention, long warranties, and substantial savings on running costs. For instance, the average five-year saving for a used EV buyer who primarily charges at home is estimated to be £5,317 compared to an equivalent petrol car. Even for those predominantly using public charging, the savings average around £3,573, making used EVs an economically sound choice.

Furthermore, a diverse array of finance, charging, and servicing options is now available, making EV ownership accessible to a broader range of drivers, including those who may not have off-street parking or the financial means to purchase a new vehicle.

However, despite this unprecedented availability and potential, consumer confidence still lags behind opportunity. Research indicates that nearly two-thirds (64%) of motorists believe there is insufficient public information on how to purchase a used EV, which may hinder the market’s growth. Concerns surrounding battery health and warranty coverage remain the most common perceived risks among potential buyers.

Yet, when drivers are provided with accurate information regarding battery lifespan and running costs, their likelihood of considering an EV increases by an impressive 8 percentage points. This highlights the critical role that education and transparency play in fostering consumer confidence.

The Association of Fleet Professionals (AFP) has underscored the significance of consumer confidence in driving demand within the used electric vehicle market, suggesting that it is just as crucial as competitive pricing. Recent studies show that transparency regarding battery health can significantly impact consumer confidence, with battery health certificates playing a pivotal role in boosting both confidence and demand for used EVs.

Additionally, recent analysis by on-street charging firm Char.gy indicates that fact-based public education can effectively dispel myths and misinformation surrounding EVs. It is essential to ensure that drivers understand that electric vehicles are not only affordable but also practical for everyday use.

Tanya Sinclair, CEO of Electric Vehicles UK, asserted, “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.”

As we move forward into an era where sustainability and environmental responsibility are paramount, the growth of the used EV market represents a pivotal opportunity for consumers and the automotive industry alike. By embracing the potential of used electric vehicles, we can foster a greener future while ensuring that sustainability remains economically viable for all.

In conclusion, the rapid growth of the used vehicle leasing market, especially in the realm of electric vehicles, marks a significant juncture in the UK’s journey towards a net-zero future. As consumer confidence continues to build and the supply of used EVs expands, the transition to zero-emission motoring is becoming increasingly attainable for a broader audience. With the right support and information, the used EV market has the potential to play a vital role in achieving a sustainable and environmentally friendly transportation system.

Let’s continue to champion the cause of sustainability and support the transition to electric mobility, ensuring that the benefits of a cleaner, greener future are accessible to all.