BVRLA lease fleet close to 2 million mark

Latest BVRLA data shows the lease fleet edging closer to the two-million vehicle mark with a current tally of 1.98m, but the association warns that volume growth is at the expense of margins, something expected to worsen in 2026. The latest BVRLA Leasing Outlook Report records an 8% growth in leased vehicles year on year driven by Business Contract Hire – up 7.9% yoy – and Salary Sacrifice, which remains the fastest growing part of the sector, up 123% yoy.

(The Salary Sacrifice figure reflects both market growth and improved categorisation, following an adjustment in the sample data in line with a broader market data set to ensure accuracy and consistency in reporting).

Personal Contract Hire continues to struggle – down 3.7% – as households commit tighter budgets elsewhere. The divergence between the car and van markets continues, with car registrations up 12.5% year on year, while vans have declined by 4.2% over the same period.

Toby Poston, BVRLA Chief Executive, said: “The vehicle leasing sector continues to play a vital role in driving new vehicle registrations and delivering road transport decarbonisation. But any satisfaction from these achievements is tempered by the relentless pressure of compliance costs, cash-strapped customers and rampant EV depreciation.

“Our industry is agile, resilient and innovative, but it needs to work in partnership with the Government. The faltering used EV market and the badly designed and poorly timed eVED regime proposals are two prime examples where we need an urgent policy rethink.”

A contributing factor in those areas reporting sustained growth, and absent in those in decline, is the presence of healthy availability of suitable EVs, and financial incentives. Such conditions have contributed to Battery Electric Vehicles accounting for 47% of the total Business Contract Hire car fleet, which has seen average emissions reduce to record lows (40.2g/km).

The volume of new models and brands within the EV space has helped to fuel recent growth of Salary Sacrifice, with BVRLA members reporting a rise in lower-rate taxpayers joining schemes as monthly rates become more accessible.

The tight economic landscape is also impacting how people think about their lease terms and renewal periods. Despite three-year leases remaining the benchmark for agreements, contracted mileages are coming down as cheaper monthly rates are sought. The frequency at which longer lease terms are being considered is also up, although this it yet to materialise on a notable level. Used cars account for over 40,000 lease contracts