What is the BVRLA Leasing Outlook report?
The BVRLA Leasing Outlook is a quarterly industry report that tracks the size, composition, and trends of the UK vehicle leasing market. According to the first report of 2026, the car lease fleet has officially surpassed 1.5 million vehicles, driven by significant growth in salary sacrifice and business contract hire (BCH) segments.
Key Market Statistics for 2026
- The total BVRLA member fleet reached 1.96 million vehicles in late 2025, with car leasing volumes growing by 12.5% year-on-year (Source: Business Motoring, Jan 2026).
- Salary sacrifice schemes saw a record 118% year-on-year increase in 2025, becoming a primary driver for electric vehicle (EV) adoption (Source: BVRLA Q2 2025 Report).
- Business Contract Hire (BCH) grew by 7.8% year-on-year, with 47% of the BCH fleet now comprised of battery electric vehicles (Source: Business Motoring, Jan 2026).
- Personal Contract Hire (PCH) saw a decline of approximately 7.6% as consumers moved toward more tax-efficient salary sacrifice options (Source: BVRLA Leasing Outlook 2025).
1.96 Million
Total number of vehicles in the BVRLA member fleet as of the 2026 outlook transition.
View sourceComparison of Leasing Growth by Segment
Growth in the UK leasing market is currently 'lopsided,' with business-funded sectors expanding while personal and van leasing face headwinds. Below is a comparison of the primary leasing methods.
- Salary Sacrifice: 118% Growth - Driven by 2% Benefit-in-Kind (BiK) rates for electric cars.
- Business Contract Hire: 7.8% Growth - Preferred for tax efficiency and fleet management services.
- Personal Contract Hire: 7.6% Decline - Impacted by high interest rates and cost-of-living pressures.
- Van Leasing (LCV): 6.7% Decline - Operators are extending existing contracts rather than entering new ones due to inflation.