Leasing firms pivot to ‘second-life’ deals to combat EV depreciation

Sector refocuses as slow UK economy and “disjointed” policy hamper demand for used electric cars

Leasing and rental firms are pinning hopes on second-life leasing and salary sacrifice in 2026 in an attempt to soften the impact of weaker-than-forecast demand for used electric cars.
The concerns were raised as part of the annual Industry Outlook Report by the British Vehicle Rental and Leasing Association (BVRLA), which asked 74 brokers, leasing and rental company members about their predictions for the next 12 months. 
This year’s report reflected widespread pessimism, with almost two thirds (63%) predicting a weaker UK economy in 2026 as “disjointed policymaking” and “increased employment costs” continue to undermine confidence among business customers.
However, the BVRLA added that uncertainty can boost demand for rental and leasing, as both can shield customers from fluctuating residual values; the lessor takes those risks and prices them into the contract. The more money a vehicl