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Salary sacrifice works on used EVs too. See the 10 second-hand electric cars UK employees choose most, and how the route via your payslip cuts the cost.
Used electric cars had their best quarter on record between April and June 2026. The SMMT counted 110,761 used battery-electric transactions, up 67% on the same period in 2025, and Auto Trader reports that the long slide in used EV values has stopped. Demand is growing and prices have found a floor, which is the moment a lot of people who have been waiting decide to buy.
The trouble is how they assume they have to buy. Ask most drivers how you get a second-hand EV and they will say cash, finance or a personal lease, all paid from money that has already been taxed. There is a fourth route that goes through your payslip instead, and it works on used cars just as well as new ones. This is what used EV salary sacrifice looks like in 2026, and which cars UK employees are choosing when they take it.
Salary sacrifice on a used electric car is a lease held by your employer that you pay for from your gross salary, before Income Tax and National Insurance are calculated, so that the same car costs you less each month than it would from taxed pay. Your employer agrees a written reduction to your salary equal to the monthly lease cost and pays the lease. Because your taxable pay is lower, you pay less Income Tax and less National Insurance. HMRC then charges Benefit-in-Kind on the private use of a company car, which for a pure electric car is 4% of its original list price for the 2026/27 tax year. On a used Tesla Model 3 that is under £30 a month for a basic-rate taxpayer.
The net effect is a saving of 20-50% against paying for the same car from your net salary, with basic-rate taxpayers at the lower end and additional-rate taxpayers on more than £125,140 at the top. Any provider quoting more than 50% has folded the employer’s National Insurance saving into your number, and it is worth asking them to show the split.
Yes, it works on used cars. The tax mechanics are identical to a new car. What changes is the starting price: a car that is two or three years old has already absorbed the steepest part of its depreciation, so the lease cost the saving is applied to is lower to begin with. With The Electric Car Scheme, used cars have had one previous owner, most are under three years old and still inside the manufacturer warranty, and each one has its real-world range independently verified by ClearWatt before it is listed. The monthly figure bundles servicing, maintenance, tyres, MOT and breakdown cover, with fully comprehensive insurance available as an add-on, and most used cars are delivered within 14 days of order.
Find out if your employer offers it, or ask them to: check your savings with The Electric Car Scheme.
The Tesla Model Y is the most-ordered used electric car on The Electric Car Scheme in 2026, followed by the BMW i4 and the Volvo XC40, and half of the ten most popular used cars carry a German or Swedish premium badge. The list below ranks the ten used EVs ordered most through the scheme between January and mid-September 2026, with a line from The Electric Car Scheme on why each one sells and a line from Green Car Guide, which has reviewed every one of them.
The cheapest example of each car in The Electric Car Scheme’s used stock on 16 September 2026 cost between £368 and £574 a month gross, before the tax saving. The table shows the gross monthly sacrifice for that car and the indicative net cost the scheme’s quote tool displayed for it, all on a 36-month term at 10,000 miles a year with maintenance, tyres, MOT and breakdown cover included and insurance excluded. Your own figure will depend on your salary and the exact car.
| # | Car | Example in stock | Gross per month | Indicative net per month |
| 1 | Tesla Model Y RWD | Dec 2022, 23,552 miles | £456 | approx. £374 |
| 2 | BMW i4 eDrive40 M Sport | Jul 2024, 21,070 miles | £516 | approx. £430 |
| 3 | Volvo XC40 Recharge Plus | May 2023, 61,216 miles | £409 | approx. £344 |
| 4 | Polestar 2 Standard Range SM | Dec 2022, 35,926 miles | £454 | approx. £352 |
| 5 | Tesla Model 3 RWD | Nov 2022, 39,759 miles | £515 | approx. £399 |
| 6 | Mercedes-Benz EQA 350 AMG Line | Jan 2023, 39,440 miles | £470 | approx. £392 |
| 7 | MG4 EV SE 51kWh | Jun 2023, 29,007 miles | £368 | approx. £271 |
| 8 | Mercedes-Benz EQC 400 AMG Line | Mar 2023, 59,146 miles | £574 | approx. £487 |
| 9 | Cupra Born V2 58kWh | Jun 2023, 33,699 miles | £401 | approx. £308 |
| 10 | BMW iX3 M Sport | Jul 2023, 37,482 miles | £563 | approx. £461 |
Net figures are those shown by The Electric Car Scheme’s quote tool at its standard settings on 16 September 2026 and are rounded. Stock changes daily, so treat every figure as a “from” price rather than a quote. The worked example below shows the arithmetic behind one of them in full.
A used Tesla Model 3 Rear-Wheel Drive, registered November 2022 with 39,759 miles, was listed by The Electric Car Scheme on 16 September 2026 at £515 a month gross on a 36-month term at 10,000 miles a year, with maintenance, tyres, MOT and breakdown cover included and insurance excluded. For a 40% taxpayer the net monthly cost is around £356, a saving of roughly 31%. For a 20% taxpayer it is around £399, a saving of roughly 22%.
| 20% taxpayer | 40% taxpayer | |
| Gross monthly sacrifice | £515.00 | £515.00 |
| Income Tax saved (20% / 40%) | £103.00 | £206.00 |
| Employee NI saved (8% / 2%) | £41.20 | £10.30 |
| Benefit-in-Kind tax on 4% of £42,990 list price | +£28.66 | +£57.32 |
| Net monthly cost | approx. £399 | approx. £356 |
| Saving vs paying from net pay | approx. £116 (22%) | approx. £159 (31%) |
| Saving over 36 months | approx. £4,160 | approx. £5,720 |
Figures were taken from The Electric Car Scheme’s quote tool on 16 September 2026 and use HMRC’s published 2026/27 rates for England, Wales and Northern Ireland; Scottish Income Tax bands differ. Benefit-in-Kind is charged on the car’s original list price when new, not its used value. All figures are illustrative: your own cost depends on the car, term, mileage, salary and your employer’s scheme.
Used electric cars are a low-risk purchase in 2026 because battery degradation has proved far slower than early fears suggested, and most used EVs are still inside their manufacturer battery warranty. Industry data consistently shows EV batteries retaining more than 80% of their capacity after eight to ten years, and most manufacturers warrant the battery for eight years or 100,000 miles. Through a salary sacrifice scheme the car is also not yours to worry about: with The Electric Car Scheme every used car is quality-checked and its real-world range verified before delivery, servicing and tyres are already paid for, and at the end of the term you hand it back and choose your next one. There is no balloon payment and no resale risk.
“Buying a used petrol or diesel car carries a number of risks because of the large number of components in their powertrains, quite apart from volatile fuel costs. Electric cars have only three main powertrain components: a battery, an electric motor and the power electronics. That means there is much less to go wrong with a used EV, and the evidence shows that these components have proven to be reliable.”
Paul Clarke, Editor, Green Car Guide
“For a long time salary sacrifice was seen as a new-car benefit. That is no longer true. Nearly three in ten of the cars our employees ordered this year were used, and the list tells you why: a BMW i4, a Volvo XC40, a Mercedes EQC. These are cars people would not buy new, at a monthly cost that works once the first owner has taken the depreciation. The tax saving is the same 20-50% as a new car. With Complete Employer Protection from day one, the employee is covered if they leave, and the employer pays nothing to set it up.”
Thom Groot, CEO and Co-founder, The Electric Car Scheme
Ask your employer whether it runs an electric car salary sacrifice scheme. If it does, you can usually browse used stock and get a quote against your own salary within minutes. If it does not, the scheme costs the employer nothing to set up with The Electric Car Scheme and includes Complete Employer Protection from day one, so there is little reason for HR to say no.
Check if your employer offers it, or ask them to: see what a used EV would cost you.
Can I get a used electric car on salary sacrifice? Yes. Used EVs are eligible for salary sacrifice on the same tax basis as new ones. The Electric Car Scheme offers one-previous-owner cars, most under three years old, with delivery in around 14 days.
How old can a used EV on salary sacrifice be? Most used cars on The Electric Car Scheme are two to three years old at the point of order and still within the manufacturer warranty.
What happens if I leave my job? The lease is in your employer’s name. With The Electric Car Scheme, Complete Employer Protection covers resignation, redundancy, sickness, parental leave and more from day one, with no exclusion period, so neither you nor your employer is left with the remaining lease.
Is a used EV cheaper than a new EV on salary sacrifice? Usually, yes. The tax saving is the same 20-50%, but it is applied to a lower monthly lease cost because the first owner has absorbed the steepest depreciation. Used EVs typically cost 30-40% less than the equivalent new car.
This article was published in September 2026 in partnership between Green Car Guide and The Electric Car Scheme. Savings depend on your Income Tax band, salary and employer’s scheme, and are based on current HMRC rules. Nothing here is personal financial advice. BiK rates and tax thresholds are subject to change. Always check the latest HMRC guidance on benefit-in-kind taxation for the most current figures.
