Leasing giant Zenith has extended its salary sacrifice product to include recently de-fleeted electric cars, hoping to stimulate a weak used EV market while making them more affordable for drivers.
Salary sacrifice schemes enable employees to lease a car through their employer and pay for it using their pre-tax salary. If the vehicle emits 75g/km of CO2 or less, it’s taxed as a company car – at rates that are much lower than they’d pay on the income used to pay for the (often discounted) monthly lease.
By introducing used electric cars, Zenith can offer options with more affordable monthly rentals, while company car tax can be lower too. The taxable value is a percentage of the car’s list price when it was new, which means it’s effectively inflation-proof.
The launch follows recent comments from industry body the British Vehicle Rental and Leasing Association (BVRLA) noting that several firms had put “significant resource” into used leasing products to reduce the financial impact of steeper than predicted depreciation – which in turn leads to pricier monthly rentals for new cars.
Uptake of 'second-life' leasing is modest, but growing quickly. There were 40,608 used cars on BVRLA members’ fleets in Q2 2025 (a 166% year-on-year increase), including 3990 on salary sacrifice schemes – a massive 7000% rise on the same period in 2024.
It’s an important channel. With fewer incentives for drivers, demand for used EVs had struggled to keep pace with the supply of end-of-contract company cars, the organisation said, adding that fast-evolving technology and aggressive discounting (to meet government-mandated sales targets and avoid heavy fines) are steering drivers towards new models instead.
The BVRLA is calling for a 0% company car tax rate for EVs over three years old, to further stimulate the market.
In a recent post, BVRLA chief executive Toby Poston said: “Low demand creates a bottleneck of supply when new registrations will only increase, intensifying the risk being taken on by those leading the way. Ultimately the cost to source a new EV will have to rise to cover that risk, putting the brakes on adoption at the front end too.”
Zenith’s digital portal enables salary sacrifice users to select specific cars from stock, with potential delivery times as short as 14 days and contracts from 12 months, removing the need for a longer-term commitment.
Andy Wolff, commercial director of Zenith’s corporate division, said the offer has been designed based on driver feedback. All vehicles include a quality check, AA safety inspection, full service history and comprehensive service and maintenance package.
MG IM5 review
MG IM5 review
Tesla Model 3
8 Tesla Model 3
BYD Sealion 7
6 BYD Sealion 7
Toyota Hilux Electric
Toyota Hilux Electric
Hyundai Ioniq 6 N
Hyundai Ioniq 6 NWolff said: “Salary sacrifice schemes have the biggest EV take-up of any type of lease or purchase made by consumers. At Zenith, more than 50% of orders are EVs.
“Being able to offer cars at a lower price point will further support demand in the market and encourage growth. Creating a healthy demand is vital for the used car market, as it protects used car values, which in turn ensures that there is no impact on new car costs through increased depreciation.”
Join our WhatsApp community and be the first to read about the latest news and reviews wowing the car world. Our community is the best, easiest and most direct place to tap into the minds of Autocar, and if you join you’ll also be treated to unique WhatsApp content. You can leave at any time after joining - check our full privacy policy here.
MG IM5 review
MG IM5 review
Tesla Model 3
8 Tesla Model 3
BYD Sealion 7
6 BYD Sealion 7
Toyota Hilux Electric
Toyota Hilux Electric
Hyundai Ioniq 6 N
Hyundai Ioniq 6 N
