The UK’s used vehicle leasing market has taken a major step forward, with a 166% year-on-year increase in used car contracts and a surge in leasing activity for second-hand electric vehicles.

New data from the BVRLA for the three months to June 2025 shows 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 increasingly view 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. 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.

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.”

More than half of drivers who are considering buying an electric vehicle within the next two years say they expect to buy a pre-owned vehicle – showing that the used market is becoming the gateway to zero-emission motoring for most UK households.

Fiona Howarth, CEO at Octopus Electric Vehicles, commented: “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 grown by 48% in the year-to-date between 2024 and 2025 – a substantially higher rate of growth than recorded for HEVs (+29%) or PHEVs (+12%) – and researchers predict that by 2030, 31% of all used car sales will be EVs.

The new data has been published as part of BVRLA’s Used EV Week (20-24 October), which highlights 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.

Moreover, 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.

But despite record availability, confidence still lags opportunity. Research shows that almost two-thirds (64%) of motorists say there isn’t enough public information on how to buy a used EV.

Concerns around battery health and warranty coverage remain the most common perceived risks.

Yet when drivers are given accurate information about battery lifespan and running costs, their likelihood of considering an EV rises by 8 percentage points.

The Association of Fleet Professionals (AFP) said earlier this year that confidence is as important to improving consumer demand in the used electric vehicle market as pricing.

Latest research shows that battery health transparency can have a major effect here, with battery health certificates boosting used EV confidence and demand.

Meanwhile, latest analysis by on-street charging firm Char.gy also shows that fact-based public education can help overcome EV myths and misinformation, ensuring drivers are aware that EVs are affordable and practical.

Tanya Sinclair, CEO of Electric Vehicles UK, remarked: “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.”