Demand for second-hand electric vehicle (EV) leases in the UK has surged, signaling a shift toward more affordable routes into electric mobility. Data from Octopus Electric Vehicles shows interest in used EV leasing climbed 177% year-on-year in March 2026, as cost-conscious drivers increasingly opt for pre-owned models over brand-new cars.
The surge comes as the UK’s broader EV market continues to expand. Fully electric vehicles accounted for nearly one in four new car sales in March, reflecting sustained momentum away from petrol and diesel. However, rising vehicle prices and economic pressures are pushing many consumers toward the used market, where entry costs are significantly lower.
Octopus EV estimates that leasing a used electric car can cut monthly payments by up to 32% compared with new models. These savings are particularly evident in salary sacrifice schemes, where lease payments are deducted from gross income, reducing overall costs for employees. A growing number of relatively new EVs—often just one or two years old—are now entering the second-hand market at competitive prices across both mass-market and premium segments.
Examples highlight the widening price gap. A used Dacia Spring can be leased from around £176 per month, compared with £239 for a new version, a saving of roughly 26%. A Tesla Model Y costs about £366 used versus £433 new, while a BMW i4 shows the largest difference, at £470 per month compared with £668—around 32% cheaper.
Analysts say these lower monthly costs are helping accelerate EV adoption, particularly among drivers who have hesitated to switch due to affordability concerns. In many cases, used EV leases are now approaching parity with petrol vehicles, especially in urban areas where fuel costs and emissions rules weigh more heavily on ownership decisions.
Supply dynamics are also improving. As fleet and lease vehicles complete their initial contracts, a steady flow of well-maintained, relatively young EVs is entering the used market. This expanding inventory is increasing choice and accessibility, broadening the appeal of electric vehicles across different income groups.
At the same time, confidence in EV technology is strengthening. Concerns about battery longevity—once a key barrier in the used market—are easing as more real-world performance data becomes available. This shift is making second-hand EVs a more viable option for buyers who previously favored new vehicles for reliability.
Demand for new EVs remains robust as well. Octopus EV reported an 89% month-on-month rise in new electric lease orders in March, indicating that both new and used segments are growing in tandem.
Chief executive Gurjeet Grewal said the market is entering a new phase driven by affordability, with more drivers realizing they can switch to electric without paying new-car prices. As the supply of used EVs continues to expand, competition among leasing options is expected to intensify, further lowering barriers to adoption.
