Salary sacrifice is rapidly emerging as a core fleet funding strategy, with new data and recent scheme launches pointing to a market moving firmly into the mainstream.
Figures from the British Vehicle Rental and Leasing Association show salary sacrifice grew by 125% in 2025, significantly outpacing business contract hire (up 10%) and contrasting with a 4.3% decline in personal leasing. The UK leasing fleet has now surpassed 2 million vehicles, underlining sustained demand for flexible funding models.
This growth is being matched by increased provider activity. Sogo Mobility has launched a new end-to-end salary sacrifice product, bundling insurance, servicing and home charging into a single offering. The move reflects rising employer demand for simple, scalable schemes that can support EV adoption without adding operational complexity.
On the ground, early engagement data suggests strong employee appetite. A scheme rollout by Tusker saw a quarter of eligible employees explore the benefit within 48 hours, with orders placed within days. Employers are increasingly positioning salary sacrifice as both a cost-of-living support measure and a route to lower-emission mobility.
While EVs are becoming more competitive on upfront pricing, affordability - especially over whole-life costs - remains a barrier for many drivers. Salary sacrifice is bridging the gap, enabling access to new vehicles while delivering tax efficiencies for both employers and employees.