What is the difference between a BEV and a Hybrid?

A Battery Electric Vehicle (BEV) is powered entirely by electricity from an onboard battery and has no petrol or diesel engine. A Hybrid vehicle uses both an internal combustion engine and an electric motor to provide power. Hybrids are often used as a transitional vehicle for drivers who are not yet ready to rely solely on public charging networks.

Why are electric cars more popular for leasing than buying?

Electric cars are more popular for leasing because leasing allows drivers to avoid the high upfront purchase price and the risk of the car losing value as newer technology is released. By leasing, a driver only pays for the use of the car over a fixed term, which typically results in lower monthly outgoings than a traditional bank loan or outright purchase.

What are the current tax benefits for electric car leasing in the UK?

The primary tax benefit is the low Benefit-in-Kind (BiK) rate for company car drivers, which is currently 2% for zero-emission vehicles until April 2025. Additionally, businesses can often claim 100% first-year capital allowances on new and unused electric cars. These incentives make electric vehicles significantly cheaper for employees than petrol or diesel equivalents.

Which new brands are entering the UK electric car market?

Several new brands have recently entered the UK market, including BYD, OMODA, and Jaecoo. These manufacturers specialise in electrified vehicles and have gained market share by offering competitive leasing rates and high levels of standard equipment. The Jaecoo 7 hybrid is currently one of the most popular models for new enquiries.

How long does it take to get a leased electric car delivered?

Delivery times vary by manufacturer and model, but many trending electric cars are available for delivery within 2 to 4 weeks if they are in UK stock. High-demand models or custom configurations may take several months. At Egon Car Leasing, we specialise in identifying stock that is available for quick delivery to minimise waiting times for our clients.

Why are Electrified Cars Dominating the UK Leasing Market?

What proportion of leased cars are now electrified?

Electrified cars now account for 63.3% of all car leasing enquiries in the United Kingdom. This figure includes both Battery Electric Vehicles (BEVs) and hybrid models. Specifically, battery electric vehicles alone represent 41.6% of the current leasing market demand. These statistics indicate a significant shift in consumer preference toward lower-emission transport compared to previous years.

63.3%

Total electrified leasing enquiries

41.6%

Battery Electric Vehicle (BEV) share

21.7%

Hybrid and Plug-in Hybrid share

The demand for electric and hybrid vehicles has nearly doubled since early 2024. According to data from Leasing.com, the interest in zero-emission vehicles is growing as drivers seek to avoid urban emission charges and reduce fuel costs. This trend is particularly visible in the leasing sector, where fixed monthly costs make the transition to new technology more accessible for households and businesses.

Why is car leasing the preferred method for electric vehicle adoption?

Car leasing is the process of paying a fixed monthly fee to use a vehicle for a set period, typically two to four years. It is preferred for electric vehicles because it protects drivers from the risks of rapid technological obsolescence and uncertain resale values. As battery technology improves, drivers can upgrade to newer models with better range at the end of every contract.

Depreciation Protection
Leasing removes the risk of a vehicle losing value faster than expected, which is a common concern for new EV technology.
Lower Tax Rates
Company car drivers pay significantly lower Benefit-in-Kind (BiK) tax rates on electric vehicles compared to petrol or diesel cars.
Maintenance Inclusion
Many lease agreements allow drivers to bundle maintenance and servicing into one monthly payment for better budgeting.

Business owners frequently choose leasing to manage cash flow and claim back VAT on monthly payments. For electric vehicles, the current Benefit-in-Kind (BiK) rate is set at 2% until April 2025. This low rate provides substantial savings for employees and employers compared to internal combustion engine vehicles, which often attract rates above 20%.

Which electric and hybrid models are trending in the UK?

Jaecoo 7 hybrid

The UK leasing market is seeing a rise in popularity for new entrants and established brands alike. The Vauxhall Frontera EV and the Jaecoo 7 hybrid have emerged as some of the most enquired-after models recently. These vehicles offer a balance of range, modern technology, and competitive monthly pricing that appeals to the mass market.

Comparison of UK leasing enquiry shares by powertrain type (Source: Leasing.com data).
Vehicle Type	Market Share (Enquiries)	Top Trending Models
Battery Electric (BEV)	41.6%	Vauxhall Frontera EV, Tesla Model 3
Hybrid (PHEV/HEV)	21.7%	Jaecoo 7, Kia Sportage Hybrid
Petrol/Diesel (ICE)	36.7%	Volkswagen Golf, Nissan Qashqai

Top 10 most leased vehicles

Chinese automotive brands

Chinese automotive brands are making a significant impact on the UK market by providing high-specification electric cars at lower price points. This increase in competition is a primary driver of the current electrification statistics. Many of these brands are now appearing in the top 10 most leased vehicles due to their immediate availability and advanced driver assistance systems.

Our Take

The surge in electrified leasing is largely driven by a combination of improved charging infrastructure and the arrival of high-value brands like Jaecoo. We observe that customers are now prioritising technology and delivery speed over traditional brand loyalty, especially when transitioning to their first electric vehicle.

UK Electric Vehicle Market Context

The wider UK automotive market is also showing steady growth in electric vehicle registrations. According to the Society of Motor Manufacturers and Traders (SMMT), battery electric vehicles reached an 18.5% market share of all new car registrations in July 2024. While this is lower than the leasing enquiry rate, it demonstrates that the leasing sector is leading the national transition to green energy.

UK Vehicle Leasing Enquiry Distribution

The British Vehicle Rental and Leasing Association (BVRLA) reports that the corporate leasing sector is responsible for the majority of new electric car registrations. Business contract hire remains the strongest catalyst for EV adoption because of the tax efficiencies provided by the UK government. These incentives are designed to help the UK reach its net-zero targets by 2050.