What is the total size of the UK leasing fleet?

The UK vehicle leasing fleet consists of 2.14 million vehicles as of the latest BVRLA data. This represents a 9.6 percent year-on-year increase. The car segment is the primary driver of this volume, seeing double-digit growth.

How much did consumer car leasing grow in the UK?

Consumer or private car leasing grew by 32.4 percent. This shift highlights a growing preference among individual UK drivers for Personal Contract Hire over traditional financing methods like Hire Purchase.

Why is used car leasing growing so quickly?

Used car leasing, specifically used PCH, grew by 529 percent because it offers a lower monthly cost for premium vehicles. It is particularly popular for electric vehicles, as it allows drivers to test EV technology with lower financial commitment than a new lease.

Is van leasing increasing in the UK?

No, van leasing has remained flat according to recent industry reports. While the car market saw significant gains, the light commercial vehicle sector did not experience the same growth in the leasing fleet during this period.

Why is the UK Car Leasing Market Growing in 2026?

What is the current state of the UK vehicle leasing market?

The UK vehicle leasing market is a financial arrangement where individuals or businesses pay a fixed monthly fee to use a vehicle for a predetermined period. Recent data shows significant expansion in this sector. According to the British Vehicle Rental and Leasing Association, the total UK leasing fleet grew by 9.6 percent to reach 2.14 million vehicles. This growth indicates a strong shift away from traditional vehicle ownership towards flexible usage models.

Surpassing the 2 million vehicle mark

2.14M

Total Leasing Fleet Size

+32.4%

Consumer Sector Growth

+529%

Used PCH Growth Rate

Key Growth Drivers in Automotive Finance

Several distinct factors contribute to the rising popularity of leasing over outright purchase. The car sector alone saw a 12.8 percent increase, primarily driven by a surge in private consumer demand. While business contract hire remains stable, individual drivers are increasingly choosing Personal Contract Hire (PCH) for its predictable costs and access to newer technology.

Private consumer leasing grew by 32.4 percent as individuals seek affordable monthly payments.
The total car leasing fleet now accounts for a massive portion of the 2.14 million total vehicles.
Used vehicle leasing is emerging as a critical secondary market for electric vehicles.
Van leasing remained flat, reflecting a period of consolidation in the light commercial vehicle sector.

UK Leasing Market Growth by Segment (Source: BVRLA via Bodyshop Magazine)
Segment	Growth Percentage	Market Status
Overall Fleet	9.6%	Expanding
Cars	12.8%	Strong Growth
Private/Consumer	32.4%	High Demand
Used PCH	529.0%	Exponential
Vans/LCVs	0.0%	Flat

The Rise of Used Personal Contract Hire

Used Personal Contract Hire is a leasing agreement applied to high quality pre owned vehicles rather than brand new ones. This segment has experienced an unprecedented growth rate of 529 percent. This trend is significant because it provides a more accessible entry point for drivers wanting to experience premium vehicles or electric drivetrains without the higher costs associated with new models.

Residual value risks

Our Take

The 529 percent explosion in used PCH suggests that the market is finally maturing to handle the first wave of returned electric vehicles. For Egon Car Leasing customers, this means higher residual value stability and better variety in the nearly new market. We expect this used leasing segment to become the primary way most UK drivers transition to electric power over the next twenty four months.

Electric Vehicle Adoption Trends

Electric vehicles (EVs) continue to dominate the new leasing pipeline. Data from the Society of Motor Manufacturers and Traders shows that fleet and business registrations frequently account for over 50 percent of all new EV registrations in the UK. Leasing companies provide a vital cushion against depreciation risks, which is why 75 percent of new battery electric vehicles are currently registered to fleets and businesses.

75%

Percentage of new battery electric vehicles (BEVs) registered to fleets and businesses in the UK.