8:38 am, October 23, 2025
Company car fleets are increasingly re-leasing used EVs in response to rising demand for new electric cars.
That is according to the British Vehicle Rental & Leasing Association (BVRLA), which says that ‘steep depreciation’ of new cars is forcing companies to re-think their strategies.
UK leasing companies reported that the number of contracts signed for used cars in the three months to the end of June was more than two-and-a-half times higher than the same period a year earlier.
That is compared with an 11% increase for new cars.
The BVRLA says that the supply of used EVs – and the consumer interest in driving them – is now growing, meaning more opportunities for the fleet market.
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.
There was also a 174% increase in business contract hire, to 33,131 cars, with experts saying that re-leasing used EVs is fast becoming one of the strongest growth areas in the automotive market.
BVRLA chief executive Toby Poston added that the used vehicle market ‘underpins the entire zero-emission ecosystem’.
He 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, chief executive of EV leasing company Octopus Electric Vehicles, added: ‘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.’
