Leasing and rental providers are preparing for another challenging year as the decline in electric vehicle (EV) residual values looks set to continue into 2026. New data from the BVRLA’s Industry Outlook Report shows 64% of companies expect used EV prices to fall further — driving up lease rates on new models as firms try to offset “sustained, deep drops”.
The broader market picture is steadier. Used demand remains strong, with 11 consecutive quarters of growth, and 77% of companies expect ICE RVs to hold or improve. But EVs remain the pressure point. Leasing firms, still absorbing losses from their first EV cycles, are calling for targeted support, including grants, BIK reform for used EVs and stronger public messaging on battery health.
Toby Poston, BVRLA Chief Executive, said: “Our sector is more resilient than ever but desperately in search of stability… Based on this report, we should plan for more of the same in 2026.”
Read the full Industry Outlook Report 2026 from the BVRLA.