Second-hand EVs: Affordable electric driving through salary sacrifice
Electric vehicles are becoming more desirable, but for many employees, the cost remains out of reach. Tusker’s EV Driver Survey found 63% of non-EV drivers still see upfront cost as the biggest barrier to switching, while 69% said price, tax benefits or affordability through salary sacrifice would be the top reason they would choose an EV next. Pre-Loved EVs change that by opening Pluxee’s Green Car salary sacrifice scheme to quality second-hand electric vehicles. Employees can access a more affordable route into electric driving, with the reassurance of servicing, maintenance and support included. Employers can offer a benefit that supports financial wellbeing, sustainability goals and everyday value. Because what people value is not simply having access to benefits. It is having access to benefits they can genuinely use, feel and afford every month.
Quick Answer: Is a second-hand electric car through salary sacrifice worth it?
Yes. A second-hand electric car accessed through salary sacrifice can provide lower monthly costs than a new EV, Income Tax and National Insurance savings, fully included servicing, maintenance and insurance, lower running costs than many petrol and diesel vehicles, and access to vehicles that may otherwise be unaffordable.
Unlike buying a used electric car privately, employees lease the vehicle through salary sacrifice and benefit from a package that includes ongoing support and maintenance.
In a hurry? Here are our top three takeaways from our blog on how second-hand EVs make electric driving more affordable through salary sacrifice.
1. Pre-loved EVs make electric driving more accessible: Second-hand EV salary sacrifice lowers the monthly cost barrier, helping more employees access electric vehicles without needing to buy privately.
2. Battery health concerns are often overstated: External proof points show that used EV batteries retain strong capacity, helping challenge one of the biggest barriers to adoption.
3. It's a benefit with value employees can actually feel: For employers, pre-loved EVs support financial wellbeing, sustainability and EVP goals, while giving employees practical savings, reassurance and a benefit that fits real life.
Got time to stick around? Let's dive a little deeper.
Why employees value pre-loved electric cars
Employees value pre-loved electric cars via salary sacrifice because of lower monthly costs, confidence, peace of mind, and affordable sustainable choices.
Tusker also reports growing demand for pre-loved electric cars: since fully launching its pre-loved car offering at the beginning of 2025, used car orders now make up around 12% of new orders, with vehicles chosen on average within two weeks of being listed.
It’s not that your employees are specifically looking for a salary sacrifice scheme. They want:
Lower monthly costs
Second-hand EVs are generally available at a lower monthly cost than equivalent new models, helping more employees access electric driving. According to Tusker, drivers choosing a used EV through its scheme find used cars are around £130 cheaper per month than upgrading to a brand-new equivalent.
Quick takeaway:
Lower monthly costs make the scheme more inclusive, widening access beyond employees who could already afford a brand-new EV.
Confidence and peace of mind
One of the biggest concerns surrounding used EVs is battery performance.
Recent analysis of more than 8,000 used electric vehicles found average battery health remained at 95.15% of original capacity (Renewable Energy Magazine). Even vehicles aged eight to nine years retained around 85% capacity (EV Powered).
Even better, our Green Cars scheme includes maintenance, servicing and support, giving employees additional reassurance.
More sustainable choices
Extending the life of an existing vehicle helps maximise the value of resources already used in manufacturing while supporting lower-emission commuting.
Myth vs reality: Common second-hand EV concerns
There are many misconceptions about second-hand EVs: batteries wear out more quickly, there’s more risk, and there are even fewer tax advantages. These things have something in common: They’re all myths.
| Myth | Reality |
| Used EV batteries wear out quickly | Analysis of 8,000+ UK EVs found average battery health of 95.15%. |
| Buying second-hand means more risk | Salary sacrifice schemes include maintenance and servicing support. |
| Electric cars are only for high earners | Electric cars are only for high earners |
| You lose the tax advantages | Tax and National Insurance savings remain available under the arrangement. |
Quick takeaway:
The biggest perceived risks around second-hand EVs are often addressed by the structure of the scheme: battery performance is stronger than many expect, and maintenance support is included.
Is it worth buying a second-hand EV?
It’s a commonly asked question: Is it worth buying a second-hand EV? It’s also a question we won't address in this blog.
Sorry.
We’re not in the business of selling cars. We offer employee benefits and can help you embed a salary sacrifice scheme into your workplace, such as our Green Cars scheme.
It’s not a traditional finance agreement. There’s no interest added. Employees pay for their cars through a salary sacrifice arrangement, saving them money by reducing their National Insurance Contributions (NIC) and tax.
So, we don’t really know if it’s worth buying a second-hand EV car, but we do know that it’s definitely worth leasing one through the salary sacrifice arrangement, as we’ll prove during this blog.
What is the average lifespan of an electric car?
If you explore what electric car manufacturers and experts have to say, you'll find that electric cars have an estimated lifespan of 15 to 20 years. They attribute this timeline to the expected battery lifespan, not the car as a whole.
Most new EV car schemes run over four years, at which point most drivers take on another scheme. That’s why we can offer pre-loved cars; drivers upgrade once their lease is over. Sometimes, cars are returned early for one reason or another, so at most, a second-hand EV on our scheme will likely be no more than four years old.
In the worst case, you choose a car that has had two owners. The vehicle could be eight years old–twelve by the time your scheme ends. However, since Pre-loved Cars is a relatively new service, the EVs are likely to be no more than four years old.
How much does it cost to replace an electric car battery?
The cost of replacing an EV car battery varies by make, model, and wattage, but on average, it’s estimated at just over £7,000 (Book My Garage).
We’re sharing this information to address a commonly asked question–something that will likely be on your employees’ minds when considering enrolling in a second-hand EV car scheme. Still, it’s not something they need to concern themselves with.
When you enrol in our Green Car salary sacrifice scheme, we have everything covered, including annual servicing, maintenance, insurance, MOT, replacement tyres, and roadside assistance. So, in the unlikely event of there being an issue with the battery of a second-hand EV, it won’t cost your employees a penny to replace it. It’s covered.
Why pre-loved EVs matter to employers
Pre-loved or second-hand EVs matter to employers because they address real-life situations–making an electric vehicle more affordable for your workforce. They’re a meaningful, accessible employee benefit your people will value, and they deliver outcomes and ROI you can prove.
We're looking at wider initiatives around inclusivity... We've also introduced five-year arrangements... and we've also introduced... pre-loved, so used vehicles basically being taken on the scheme as well.
Alison Argall, Business Development & Client Retention Director at Tusker on the Pluxee UK podcast
More affordable and inclusive
As part of the rules of the salary sacrifice arrangement, employees aren’t eligible to enrol in a Green Car scheme if the monthly repayments take their salary below the National Minimum Wage. We already offer a wide selection of new electric vehicles (EVs) to suit a diverse range of budgets. By introducing second-hand EVs, you make the scheme more affordable, inclusive, and accessible for lower-paid employees.
Pre-loved cars make the scheme more affordable for more employees.
Alison Argall, Business Development & Client Retention Director at Tusker on the Pluxee UK podcast
CSR & ESG
Every employee who enrols in your Green Cars scheme helps reduce your business’s carbon footprint because they’re adopting a more environmentally friendly way of commuting.
With a pre-loved EV, you can further enhance your CSR credentials because your employees take on an existing vehicle, reducing the need to manufacture new cars.
What we're looking to do here is transition employees into a greener, less polluting vehicle.
Alison Argall, Business Development & Client Retention Director at Tusker on the Pluxee UK podcast
Designed for real life
Employees are under financial pressure, and motoring costs are part of that reality. Tusker’s research shows affordability is now a stronger driver than sustainability for many employees considering an EV, with 69% of non-EV drivers citing price, tax benefits or salary sacrifice affordability as a key reason to switch, compared with 38% citing environmental benefits.
Offering an employee benefit that helps reduce commuting costs and spreads payments through payroll delivers practical support employees can feel every month.
Built to stick
Meaningful benefits strengthen an Employee Value Proposition.
When employees feel supported with benefits that solve real-life challenges, engagement and loyalty are more likely to follow. Tusker also reports that EV salary sacrifice is increasingly seen as a long-term employee benefit, helping employers improve affordability, support sustainability goals and offer something genuinely valuable to employees.
Value you can show
A Pre-loved Green Car salary sacrifice scheme benefits more than just employees.
Employers benefit from:
- Reduced National Insurance contributions
- Enhanced employee wellbeing
- A stronger sustainability story
- Greater accessibility across different salary levels
Quick takeaway:
For employers, the value is twofold: employees get a practical benefit they can use, while organisations can support affordability, sustainability and EVP goals at the same time.
Do the Green Car scheme benefits differ between new and pre-loved EVs?
Overall, the scheme terms are the same for new and second-hand EVs, but there are a few differences to flag. Read on for the nitty-gritty.
National Insurance Contributions (NIC) & tax savings
When it comes to how the NIC and tax savings work, it’s the same for new and pre-loved cars. Regardless of the car's condition, the salary sacrifice scheme arrangements remain the same. The employer deducts monthly repayments from the employee’s gross pay, reducing the amount paid in NIC and tax.
Employers reduce their NIC bills in the same way.
Maintenance and insurance
As we mentioned when discussing EV batteries, one of the most outstanding features of our Green Car scheme, and another reason it offers better value than traditional finance, is that we include car maintenance as part of the package.
Insurance, maintenance, servicing, replacement tyres and breakdown cover are all part of the package, whether your EV is brand-new or pre-loved.
Quality assurance
Employees expect a new car to be flawless. While second-hand EVs may show signs of their previous life, we bring them up to the BVRLA Fair, Wear and Tear standard, ensuring they’re in the best possible shape. We also include photos of any imperfections with the listing for complete transparency.
We put our second-hand EVs through thorough maintenance checks, inspecting all parts to identify any imperfections.
Lead time
We only list pre-loved cars when they become available. The lead time from placing an order to receiving the vehicle is typically around four weeks. It’s challenging to compare second-hand EV lead times to new ones because they differ so vastly. Some new cars are ‘off the shelf’, whereas some are put into production after an employee places an order, meaning some new electric cars are available immediately, and others may have a more extensive wait.
Try before you buy
You can’t test drive a pre-loved car before buying it due to the nature of how they become available and the high demand for second-hand EVs. There are plenty of new electric car dealerships around, so it’s worth trying a few different models to gauge which is best for you before stalking the pre-loved listings page.
Peace of mind
Our Green Car salary sacrifice scheme comes with peace of mind guaranteed, whether you’re an employer or an employee. Just like with new cars, the agreement is between the employee and our Green Car partners. Employers facilitate repayment via the salary sacrifice agreement but assume no responsibility.
Service history
Because the second-hand EVs we offer are already leased and serviced through our scheme, your employees can rest assured their pre-loved car has a full service history, in line with the manufacturer's guidelines.
Warranty
With our Green Car Scheme, warranties are largely unnecessary. The scheme covers all maintenance, so if an issue arises, all you need to do is pick up the phone and arrange for your car to be fixed.
Can you get tax relief on a second-hand electric car?
From a road tax perspective, second-hand EVs adhere to the same rules as new models. The Government has published updated guidelines that let you check your EV's tax rate.
Access the updated Government guidance here.
Are second-hand EVs tax-deductible?
We’ll reiterate that we’re answering these questions based on leasing a car via a salary sacrifice scheme, not private leasing or purchasing a vehicle outright.
With a salary sacrifice scheme, employees enjoy the same NIC and tax savings with a second-hand EV as they do with a brand-new one. Employers benefit from reducing their NI contributions, too.
The same rules for Benefit in Kind (BiK) apply with second-hand EVs, too, as you have to use the original list price of the car on your P11D submission.
What’s the best second-hand electric car?
If you take a look at our blog, ‘Everything you need to know about EV salary sacrifice schemes’, you’ll see that what people consider to be the best differs depending on personal taste and what you need from your car.
It’s safe to say that if a car is popular enough for an employee to take on as brand-new, it will eventually become available as a pre-loved option. You can expect second-hand EVs of all makes and models to become available, and they get snapped up quickly.
If your employees have their heart set on a pre-loved option, you should advise them to check the pre-loved section regularly and act when they see something they want.
You can also hear which model is most popular in our podcast with Tusker.
Second-hand EV salary sacrifice schemes: More affordable. More inclusive. More aligned to what employees value
Electric vehicles are no longer reserved for early adopters or high earners.
Pre-Loved EVs create a more accessible route into electric driving, helping employees reduce costs while supporting sustainability goals that matter to organisations and employees alike.
Research continues to show that battery degradation is far less significant than many people assume, with most used EV batteries retaining excellent levels of performance.
For employers, introducing second-hand EVs helps remove affordability barriers and extends the reach of an already high-value benefit.
Because when benefits solve real-life challenges, people are more likely to use them.
And that's where the real value begins.
Key takeaway:
Pre-Loved EVs make salary sacrifice more accessible, more affordable and more aligned with what employees value in real life: lower costs, reassurance and benefits that feel useful every month.
FAQs
Are second-hand electric cars reliable?
Yes. UK research involving more than 8,000 used EVs found average battery health remained above 95% of original capacity.
Do second-hand EVs qualify for salary sacrifice?
Yes. Employees can access eligible pre-loved EVs through participating salary sacrifice schemes.
Do used electric cars have lower running costs?
Electric vehicles typically have fewer moving parts than petrol or diesel alternatives and can benefit from lower servicing and fuel costs.
Is battery degradation a major problem for used electric vehicles?
Research suggests battery degradation is significantly lower than many consumers expect, with most vehicles performing well beyond perceived thresholds.
What are the benefits of offering second-hand EV salary sacrifice schemes?
Employers can increase accessibility, improve financial wellbeing support, strengthen their EVP and contribute towards sustainability objectives.
Sources:
Tusker: Tax and NI savings fuel EV salary sacrifice surge
Fleet News: Tusker salary sacrifice growth in 2025
Fleet World: Pure electric cars and PHEVs account for 95% of Tusker fleet in 2025
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