Used EV Salary Sacrifice: The Cheaper Way Into an Electric Car
You don’t have to choose a new electric car when you join a salary sacrifice scheme. Any good scheme will also offer Used EVs, giving you a more affordable vehicle cost to start with and the added bonus of the tax advantages of sacrificing part of your gross salary.
A used EV may make sense for you if you want to;
- lower your monthly car costs
- can’t justify the price of a new EV
- want to access salary sacrifice but don’t need the latest electric car model
How used EV salary sacrifice works
Salary sacrifice works the same for used EVs as brand new models. If an employer offers a salary sacrifice car scheme, the employee can choose an eligible vehicle, including a used electric vehicle if available from the provider. Part of the employee’s gross salary is exchanged for the “benefit” of the electric vehicle.
New to salary sacrifice schemes? Check out our guide on how a salary sacrifice car scheme works, complete with worked examples and eligibility information.
Why it’s cheaper twofold
Choosing a used EV is a decision that’s cheaper twice over, as there are two compounded sources of savings:
- The car costs less to begin with: A used EV generally costs less than an equivalent new model, although the actual difference varies depending on the model, age, mileage, and specification.
- The salary sacrifice comes out before tax: Your salary is sacrificed before Income Tax and employee National Insurance are calculated, subject to normal salary sacrifice rules.
Together, these two benefits make a used EV a more attractive option for someone who wants to reduce the cost of driving an electric car as much as possible.
What’s available, and what it costs
There are various factors that determine the availability of used electric vehicles. The used EV market can include a broad range of models, from relatively recent vehicles with modest mileage through to older EVs that offer the lowest entry price if you want the most affordable option.
As used car stock changes constantly, there isn’t one “typical” monthly price that you can expect to pay when choosing a used EV, but The most useful comparison is to look at the live price of the specific used electric car that you’re interested in, compared to the cost of the same model and specification brand new.
Some of the factors that determine the cost of a used EV include:
- Battery size/range
- Condition
- Mileage
- Model availability
- Specification
- Vehicle age
Most providers don’t offer the choice of both new and used electric vehicles. At loveelectric, employers and employees can choose between our new and used reloved® cars.
Used or new: the honest comparison
A used electric vehicle is not guaranteed to be cheaper on a monthly salary sacrifice basis than a new model. The actual cost depends on the specific vehicle, lease structure, terms, mileage, and current stock. However, more often than not, they represent a significant saving over leasing new.
There are several important differences between a used vs. new EV. Here are a few to consider:
While warranty and depreciation are important when buying a vehicle, it’s less important when leasing a car through salary sacrifice.
Every lease comes with a full maintenance and servicing package as standard, meaning that if something does go wrong, you’re not footing the bill.
Why you may prefer getting a used EV
A used electric vehicle may be the best option if you:
- Want more for your money
- Are happy with a slightly older model
- Want to maximise your savings
Why you may prefer getting a new EV
By comparison, a new EV may be a better choice if you want:
- The latest technology available
- Maximum vehicle choice with a full range of specifications
- A new model with likely better range than a comparative used model
On a budget or want the most affordable EV option? Read our guide to the best affordable electric cars for UK drivers in 2026.
Frequently Asked Questions (FAQs)
Q: Can you get a used car on salary sacrifice?
A: Yes, used electric cars can be offered through salary sacrifice, depending on the scheme and eligible vehicle. loveelectric’s reloved® scheme unlocks extra savings with the same all-inclusive package as new EVs.
Q: Is a used electric car cheaper than a new one on salary sacrifice?
A: A used electric car is often cheaper than a new one on salary sacrifice as the lease cost is typically lower; however, lease terms, mileage and live vehicle pricing will determine the actual monthly costs.
Q: How do I check the battery health of a used EV?
A: Ask for the vehicle’s available battery-health information and check the remaining battery warranty before selecting a used EV through a salary sacrifice scheme. The vehicle’s battery state, warranty status, and charging history can also help indicate its overall battery health.
Q: What warranty do you get on a used electric vehicle?
A: The specific warranty for a used electric car will depend on the vehicle, manufacturer, and remaining warranty period. Always check the specific vehicle’s warranty terms, rather than assuming that every used vehicle has the same coverage.
Q: What happens at the end of the agreement?
A: You will typically return your used EV to your salary sacrifice provider, or you may be able to purchase the car outright. Alternatively, you may also choose to extend your current lease agreement or upgrade to a new EV.
