The UK’s electric vehicle market feels like it’s about to change massively, with a growing wave of pre-owned EVs set to flood the used car dealerships. As more drivers look for cheap entry points that are popping up all over the new EV lists for 2025, these secondhand models offer an appealing alternative. Yet, this surge in supply poses a complex challenge: while it could drive up EV adoption, it might also impact the sales of new EVs in the coming years.
Industry reports suggest that the number of electric vehicles returning from leases and salary sacrifice schemes is set to climb significantly in the next few years, expanding the UK’s secondhand EV market and, crucially, offering consumers a more affordable way to transition from petrol. It’s anticipated that thousands of off-lease EVs will become available, potentially pushing down prices across the board as supply rises.
Salary Sacrifice Schemes: Making Secondhand EVs More Accessible
Many salary sacrifice schemes now include pre-owned EVs. Traditionally focused on new models, these schemes allow employees to lease an electric vehicle through their employer by sacrificing a portion of their pre-tax salary, reducing overall income tax and National Insurance contributions. Companies like The Electric Car Scheme and Love Electric introduced used EVs into their fleets.
Opting for a secondhand EV through a salary sacrifice scheme could also open up a broader selection of vehicles. With many brands and models returning from lease agreements, employees have more choices than ever. The best EV schemes provide additional perks, such as maintenance, EV insurance, and breakdown cover, reducing the hassle often associated with used cars and making the transition to electric even smoother.
With lower prices and an expanding choice of pre-owned EVs, this development could drive UK EV adoption to new heights. But while these opportunities are promising for buyers, they present challenges for manufacturers hoping to sell new EVs. The new wave of affordable options might create a competitive pricing environment, especially if current tax incentives for new EVs shift in the future.
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For drivers contemplating buying an electric car, you have the choice of a secondhand EV at a reduced price or look at new models as manufacturers release more affordable designs each year.
John is the Editor and Spokesperson for Electric Car Guide.
With over 20 years of writing experience, he has written for titles such as City AM, FE News and NerdWallet.com, covering various automotive and personal finance topics.
John’s market commentary has been covered by the likes of The Express, The Independent, Yahoo Finance and The Evening Standard.
