The UK leasing market has passed two million vehicles for the first time, according to the latest data from BVRLA – but the headline growth comes with some clear trade-offs.
The fleet grew 12.9% year-on-year, with business contract hire up 10%. The standout figure is salary sacrifice, which has surged by 125% and is now a major driver of EV uptake, giving employees access to electric cars at a lower cost.
Reasons to be positive
- Leasing fleet surpasses 2 million vehicles
- Salary sacrifice driving EV adoption at scale
- Nearly half of BCH cars now fully electric
- More businesses planning fleet expansion
What to watch out for
- Falling used EV values hitting leasing profitability
- Margins under pressure across the sector
- More fleets extending contracts to manage costs
- Economic uncertainty influencing replacement cycles
There is tension in the market. Demand is growing, particularly through salary sacrifice, but that growth is coming at a cost. Leasing companies are absorbing losses linked to EV depreciation, and fleets are becoming more cautious in how they fund and replace vehicles.
Salary sacrifice is now one of the most effective ways to drive EV uptake, but it needs to be balanced with a clear understanding of long-term costs, residual value risk and contract strategy.
Read the BVRLA report in full.
