Demand for used electric vehicles through salary sacrifice schemes is continuing to climb, with more employees choosing pre-owned EVs as a way of accessing higher-specification cars while still benefiting from the financial advantages of salary sacrifice.
Figures from salary sacrifice provider Tusker show that more than 5,000 used electric vehicles are now on the road through its Pre-loved scheme, representing more than eight times the number recorded a year earlier.
The growth has accelerated significantly during 2026. Tusker says it received more than 3,500 orders for used electric cars during the first seven months of the year, representing a 350% increase compared with the same period in 2025. Deliveries have increased by more than 500% year-on-year.
The figures provide another indication that demand for electric vehicles is extending beyond the new-car market, with used EVs becoming an increasingly important option for employees considering salary sacrifice.
More Employees Now Have Access To Used Car Salary Sacrifice
The expanding availability of used vehicles is also helping to make salary sacrifice schemes accessible to a much larger workforce.
Tusker reports that 77% of its customers now offer its used car salary sacrifice option to employees, giving more than two million people access to the scheme. That represents around 90% of the company’s overall employee base.
Used cars have also become a more significant part of Tusker’s overall business. By January 2026, Pre-loved vehicles accounted for approximately 15% of all new orders placed through the provider.
The figures highlight how salary sacrifice is increasingly being used for more than simply accessing a brand-new vehicle. For businesses wanting to understand how salary sacrifice can fit into their wider employee vehicle strategy, CVC’s Salary Sacrifice guide explains how the scheme works for both employers and employees.
For employees considering the wider implications of moving to electric, our guide to Switching to an Electric Vehicle covers some of the key practical and financial considerations involved.
Used EVs Can Open Up More Premium Choices
One of the more interesting trends is the difference between the types of cars selected by employees when choosing new and used vehicles.
Tusker’s data suggests that basic-rate taxpayers are often more likely to choose affordable new vehicles from newer manufacturers, including brands such as Jaecoo, Omoda and BYD.
When choosing a used vehicle through salary sacrifice, however, the preference changes towards more established premium models.
The Tesla Model Y, BMW 4 Series and Audi Q4 e-tron are among the most popular used choices, suggesting that the second-hand market can give employees access to vehicles that may otherwise sit outside their budget when purchased new.
The difference can also be seen in the value of the vehicles being selected.
During 2026, the average new car chosen by a basic-rate taxpayer through Tusker’s salary sacrifice schemes had a P11D value of approximately £38,500.
For Pre-loved vehicles, the average rose to £46,800.
This suggests that some employees are using the used-car route to move into more expensive and higher-specification vehicles while retaining the tax advantages associated with salary sacrifice.
Our Top 10 Electric Cars To Lease in 2026 guide also looks at some of the electric models currently attracting interest from private drivers, company car users and salary sacrifice customers.
Why Used EVs Are Becoming More Attractive
The growing interest in used EVs through salary sacrifice comes at a time when the second-hand electric car market is offering considerably more choice than it did just a few years ago.
As increasing numbers of electric vehicles return to the used market, employees can choose from a wider selection of models, specifications and manufacturers rather than being restricted to the latest new-car launches.
There are also signs that demand for used EVs is strengthening more broadly.
Recent market data covered by CVC found that the average retail value of a three-year-old battery electric vehicle increased by 7.5% over five months, with values rising by more than £1,600 since April.
You can read more about this in our article, Used EV Values Rise 7.5% As Demand Strengthens.
The improving used market could be significant for salary sacrifice drivers because it means there is now a wider pool of previously leased and privately owned electric vehicles entering the market.
For employees, that can create an opportunity to access a more premium vehicle for a lower overall cost than choosing an equivalent new model.
Salary Sacrifice And The Cost Of Going Electric
The appeal of salary sacrifice is not limited to the purchase price of the vehicle itself.
For eligible employees, an electric vehicle can provide access to a relatively low Benefit-in-Kind tax rate, while salary sacrifice schemes may also bundle other motoring costs into a single arrangement depending on the employer and provider.
This can make the overall cost of running an EV easier to budget for, particularly when compared with purchasing or financing a more expensive premium vehicle independently.
The growing range of used electric cars gives employees another way to make use of these schemes without necessarily having to select the latest model generation.
The wider used EV market is also becoming more established as vehicles from earlier generations move into their second ownership cycle. That gives drivers more choice in terms of battery size, range, equipment and price.
For employees considering a used electric vehicle, the increasing range of models also means there is more choice when it comes to battery capacity, driving range and charging capability. Understanding how and where an EV will be charged is therefore an important part of assessing the overall suitability and running costs of a vehicle.
Our guide to How EV Charging Works For Businesses explains the different charging options available and the considerations for businesses and employees using electric vehicles.
Used EV Standards And Vehicle Preparation
Used vehicles supplied through Tusker’s Pre-loved scheme are required to meet the BVRLA Used Car Standard.
The cars are handpicked before being inspected and reconditioned, with each vehicle supplied with a full service history and a valid MOT where applicable.
That preparation is particularly relevant when employees are considering a used electric vehicle through salary sacrifice, as the condition and history of a second-hand vehicle can be an important consideration when choosing between different models.
The increasing availability of used EVs also means drivers have more opportunity to compare different generations of electric vehicles rather than simply choosing between the newest models.
What Happens If A Used EV Breaks Down?
As with any vehicle, an electric car can still experience mechanical or electrical problems despite having fewer moving parts than a conventional petrol or diesel vehicle.
EV breakdowns can also require different recovery procedures because of the high-voltage battery system and electric drivetrain.
Our guide to What Happens If an Electric Vehicle Breaks Down? explains what drivers should do if an EV becomes immobilised and why specialist recovery equipment may sometimes be required.
For drivers considering a used EV, understanding these practical issues is just as important as looking at the vehicle’s range, charging speed and battery capacity.
EV Salary Sacrifice And Business Mileage
For employees using an electric vehicle for business journeys, mileage reimbursement is another factor worth considering.
HMRC uses separate Advisory Electric Rates (AERs) for EVs, with different rates applying depending on how electricity is supplied. Understanding these rates can help employees and businesses work out how much can be reimbursed for business mileage.
Our HMRC Mileage Reimbursement: New Rates for Petrol, Diesel, LPG, and EVs guide explains how the current reimbursement rates work and how businesses can reimburse employees for business mileage in electric vehicles.
For a more practical way to work out the potential cost of charging an EV, our HMRC AER Reimbursement Calculator can also be used to estimate electricity costs and compare them with the applicable HMRC Advisory Electric Rate.
For employees using a salary sacrifice EV for both personal and business journeys, understanding how mileage reimbursement works can therefore form an important part of calculating the overall cost of running the vehicle.
Used EVs Could Play A Bigger Role In Salary Sacrifice
The rapid growth of Tusker’s Pre-loved scheme highlights how the salary sacrifice market is changing alongside the wider used EV sector.
With thousands more electric cars now entering the second-hand market, employees have access to a broader selection of vehicles, including premium models that may have been considerably more expensive when new.
The combination of salary sacrifice tax benefits, increasing used EV availability and changing vehicle prices could make pre-owned electric cars an increasingly important part of workplace vehicle schemes.
For businesses and employees considering the move to electric, the choice is therefore no longer simply between a new EV and a conventional petrol or diesel vehicle.
The expanding used market is creating another route into electric motoring, with more models and price points becoming available as the UK’s EV parc continues to mature.
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