Leasing firm Octopus launches used EVs salary sacrifice scheme for cheaper access

Car leasing firm Octopus Electric Vehicles has introduced a salary sacrifice program focused on pre-owned electric vehicles (EVs), extending accessibility to a broader audience.

Its 'Nearly New' salary sacrifice initiative aims to help EVs become more rapidly viable for mass market ownership, through offering tax-efficient leasing to employees of businesses which it partners with.

While salary sacrifice schemes may tempt away some traditional new car customers who buy from franchised dealerships, major AM100 groups such as Pendragon, Sytner and JCT600 offer their own salary sacrifice schemes through their corporate leasing divisions.

With supply of second-hand EVs exceeding UK demand currently, their values have dropped to make them more affordable and now, under this scheme, Octagon says customers could pay around £300 per month from their pre-tax gross salary to drive a pre-owned electric Renault Zoe, Peugeot e-208, or Vauxhall Mokka-e, including fuel, insurance, and maintenance expenses.

This expansion builds upon Octopus' salary sacrifice scheme for new EVs initiated in 2021, a program currently used by over 3,500 companies.

Fiona Howarth, chief executive of Octopus Electric Vehicles, said consumers can now "run one of these high tech, green, fun cars for half the price of an old school gas guzzler.”

She added: “Leasing for EVs is an attractive option for people looking to go electric, allowing drivers to switch to the latest tech every few years and take advantage of low fuel costs.

"Very few of our drivers ever look back, and now going electric is even more affordable, opening it up to more drivers that may not have previously considered it.”

Octopus Electric Vehicles, owned by Octopus Energy Group, recently announced it had reached £650 million in electric car funding to further enhance its salary sacrifice proposition.

Its rival Loveelectric.cars launched its own used EV salary sacrifice option in April, branded Re-loveelectric.