Leasing Used Electric Cars: A Smart Financial Move

As the world shifts towards sustainable transport, many drivers are grappling with the choice between traditional petrol or diesel vehicles and electric cars. For Anthony Santos, a sales manager at RWinvest in Liverpool, the transition from his diesel SUV, an Audi Q3, to an electric vehicle (EV) seemed daunting. However, the growing trend of leasing used electric cars has opened up new possibilities for affordability and accessibility, making it easier for consumers to embrace greener options.

Just a few years ago, the market for used electric cars was nearly non-existent, making leasing them a rare option. However, the landscape is changing rapidly. Currently, there are over 1 million electric vehicles on British roads, and as early adopters upgrade, their used cars are increasingly available for lease. This influx of secondhand EVs has created new opportunities for consumers seeking cost-effective alternatives to traditional vehicles.

According to the British Vehicle Rental and Leasing Association (BVRLA), the second quarter of 2025 saw a remarkable 166% increase in used car leases compared to the same time the previous year, largely driven by the demand for electric vehicles. Thom Groot, the CEO of the Electric Car Scheme, notes that only three years ago, the market for leasing used EVs was minimal due to their scarcity. Today, used EVs account for nearly half of his business, a stark increase from just 15% of sales in 2024.

Companies like Octopus EV, part of the UK's largest energy supplier, have also reported a doubling of used EV leases in the past year. Major leasing players, such as Lloyds Banking Group’s Lex Autolease, BNP Paribas’s Arval, and the independent group Zenith, have begun offering leases on used electric vehicles, further fueling this trend.

The average new electric vehicle in the UK comes with a hefty price tag of around £50,000, making it a stretch for many budgets. In response, the government launched a subsidy scheme in the summer to help alleviate some of the financial burdens associated with purchasing new EVs. However, opting for a used electric vehicle can significantly enhance affordability.

Santos found that he could lease a lightly used Mercedes-Benz EQA with zero upfront payment. His employer offered a salary sacrifice scheme through the Electric Car Scheme, allowing him to pay just £360 per month for a vehicle typically priced at £570 monthly. "There was no deposit – the tax benefits really made sense," Santos explains. "That’s what made me move forward with it."

Leasing a car typically involves paying a monthly fee for a predetermined period, usually between two to three years. This arrangement allows drivers to avoid the large upfront costs associated with purchasing a vehicle. In many cases, the leasing package includes additional expenses like road tax, breakdown assistance, and service and maintenance, although insurance is generally not covered.

Leasing a used electric vehicle is often much more economical than buying a new one, even for models that are only a few years old. This affordability opens doors for individuals on lower incomes, facilitating access to higher-end EV models that may have previously been out of reach.

Switching to electric, hybrid, and low-emission cars has significant environmental benefits. As more consumers consider the impact of their motoring choices, the demand for sustainable vehicles continues to rise. Leasing used EVs not only supports this shift but also contributes to a reduction in carbon emissions, aligning personal finance with environmental responsibility.

The growing availability of used electric vehicles for lease presents an exciting opportunity for consumers looking to transition to eco-friendly motoring without breaking the bank. As companies and governments continue to encourage the adoption of electric cars, options like leasing used EVs will likely become increasingly popular. For individuals like Anthony Santos, this shift represents not just a financial decision, but a step towards a more sustainable future.