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The UK leasing fleet has surpassed two million vehicles for the first time, reaching 2,079,575 units, according to the BVRLA’s latest Leasing Outlook report.
The report shows year-on-year growth of 12.9%, outperforming the wider automotive market. Growth continues to be driven by the car segment, alongside strong increases in business contract hire (BCH) and salary sacrifice schemes, while personal contract hire (PCH) has declined as household budgets remain under pressure.
The transition to battery electric vehicles is a key factor shaping the sector, with electric models now accounting for 48% of the BCH car fleet. However, this shift is contributing to increased financial pressure, with leasing companies reporting a decline in margin confidence as they manage the impact of electric vehicle residual values.
Toby Poston, BVRLA Chief Executive, said: “Crossing the two million vehicle milestone is a significant achievement for the leasing sector and underlines the strength of demand for its flexible, low-risk model. However, this growth is being delivered against a backdrop of real financial strain.
“Persistent pressure on electric vehicle residual values, combined with wider economic uncertainty and global unrest, means margins are being squeezed like never before. Sustained progress will depend on greater market stability and clear, consistent policy signals from Government.”
The report also highlights a growing trend towards contract extensions, as customers seek to manage costs in the current economic climate.
Members can view or download the full Leasing Outlook report on the BVRLA website.
