13 February 2026
Salary sacrifice drives EV boom in UK leasing market
Salary sacrifice drives EV boom in UK leasing market
The latest BVRLA Leasing Outlook Report shows electric vehicles (EVs) are firmly taking the wheel in the UK leasing market. With the total lease fleet nearing two million vehicles, EVs are increasingly popular, particularly through salary sacrifice schemes, which have grown a staggering 123% year-on-year.
Salary sacrifice continues to outperform all other segments, making EVs accessible to a broader range of employees. Lower monthly payments, Benefit-in-Kind (BiK) tax advantages, included maintenance packages, and the arrival of smaller, more affordable electric models mean that even workers in medium and small businesses are now more likely to get behind the wheel of a zero-emission car.
Leasing companies have also made it easier with automated portals and clear communication, opening up schemes to drivers who previously couldn’t participate.
Business contract hire (BCH) is also performing well, up 7.9% year-on-year, as more companies move away from outright purchase to avoid the high capital costs and residual value uncertainty of EVs.
Personal contract hire (PCH), where drivers lease a car themselves rather than through their employer, continues to lag behind, down 3.7%, reflecting tighter household budgets.
EVs dominate the salary sacrifice fleet, where 83% of cars are fully electric, compared to 47% in BCH and just 18% in PCH. Maintenance packages are widespread, included in 65% of BCH contracts and almost all salary sacrifice agreements, helping fleets keep total cost of ownership predictable.
The report also highlights that overall leased fleet is cleaner than ever, with average car CO2 emissions now 60g/km, dropping to 40.2g/km in new BCH cars and even lower for salary sacrifice vehicles. While passenger cars race ahead in electrification, vans remain mostly diesel and are limited by vehicle availability, range and payload considerations, meaning fleets need careful planning before fully switching to electric.
While volumes grow, margins are under pressure. Leasing companies face rising costs, EV depreciation, and economic uncertainty, prompting careful scrutiny of fleet policies, contract terms, and maintenance options. Despite this, salary sacrifice and business contract hire are showing that financial incentives, flexible schemes, and a wider choice of vehicles can drive adoption and accelerate the shift to a low-emission fleet.
For fleet operators, it’s clear that salary sacrifice is not just a perk, it’s key to EV adoption, helping staff, fleets, and the environment at the same time.
Salary sacrifice that delivers
With salary sacrifice schemes proving to be one of the most effective ways to go electric, having the right partner matters. Activa helps businesses unlock the benefits of EV salary sacrifice with a range of vehicle options, full vehicle maintenance included, low deposit payments, and expert support along the way. Get in touch with us today to get started.
