The number of used electric vehicles leased in the United Kingdom has surged by 170% over the past year, driven largely by rising petrol prices and increased availability of secondhand models, industry figures show. This growth reflects a significant shift in consumer behavior as drivers seek more affordable alternatives to traditional fossil fuel-powered cars.

Data from the British Vehicle Rental and Leasing Association (BVRLA) indicates that the surge in used electric vehicle (EV) leasing coincides with a rapid expansion in the supply of secondhand electric cars. Many of these vehicles are entering the market as early adopters cycle out their first-generation EVs. The total number of electric cars on British roads surpassed two million earlier this year, further expanding the used EV market.

While approximately 85% of new vehicles in the UK are acquired through some form of financing—most commonly leasing on monthly payment plans—the market for used electric car leasing had been relatively limited until recent years. Providers had awaited a larger stock of used EVs and more robust data regarding their longevity before expanding offerings. The recent spike in demand has now encouraged more firms to enter the used EV leasing space.

The rise in lease agreements has been particularly notable following sharp increases in petrol prices since February, coinciding with military actions involving the United States and Israel against Iran. These higher fuel costs have made electric vehicles comparatively more economical for many consumers.

Toby Poston, chief executive of the BVRLA, emphasized the growing importance of used EV leasing as a pathway to wider electric vehicle adoption. He noted that leasing offers consumers access to well-maintained, technologically up-to-date electric cars at various price points, mitigating the financial risks often associated with ownership. Poston highlighted the role of salary sacrifice schemes—in which employees can reduce their taxable income by leasing vehicles through their employer—as a key driver of adoption. The number of used electric cars leased through salary sacrifice programs has increased more than fivefold in the last year, according to the BVRLA.

Additionally, personal contract hire agreements for used vehicles, in which consumers essentially rent the car for a fixed monthly fee, saw a growth of nearly six times during the same period. The growing availability and variety of used EV leasing options are broadening access to electric vehicles across a wider segment of drivers than before, potentially accelerating the transition to a low-emission transport sector in the UK.