Leasing fleet surpasses two million but growth masks margin pressure - BVRLA

BVRLA lease fleet grows 12.9% year-on-year to 2,079,575 cars and vans
Car fleet up 15% year-on-year; van fleet up 6.8%
BCH car fleet up 10% year-on-year; salary sacrifice up 125% YOY; PCH down -4.3% YOY
Expectation for continued growth in BCH and salary sacrifice, but with a squeeze on margins.

THE UK’s vehicle leasing fleet has seen its year-on-year growth outperform that of the wider market, surpassing two million vehicles for the first time, according to the BVRLA’s latest Leasing Outlook report.

The April 2026 Leasing Outlook report shows the combined car and van lease fleet grew by 12.9% year-on-year to 2,079,575 vehicles. Over the same period, the wider automotive market saw new car registrations rise by 3.5% and van registrations decline by 10%. Mirroring recent quarters, growth has been driven by the car market, with the car fleet up 15% year-on-year, while vans increased by 6.8%.

The broker sector has played a notable part in these statistics, as Broker News highlighted in February with our inaugural BN25 league table of 2025 sales.

We highlighted that the total volume of 116,000 units would make the BN25 leasing brokers the equivalent of fourth largest OEM by sales volume in 2025, with Ford just above them on 119,000 units (5.9%) and Kia just below with 113,000 (5.6%).

The BVRLA report also notes that ‘the effectiveness of leasing brokers as a sales channel has seen new entrant manufacturers prioritise leasing as a route to market, and the industry has benefited in turn from their rising sales.’

BCH up, PCH down

Established trends flagged in the January Outlook for business and personal customers also continued.

BCH is up 10%, while salary sacrifice rose by 125%.
PCH declined by 4.3% as household budgets remain under pressure.

Leasing operators and their fleet customers are driving the UK’s transition to EVs, which now account for 48% of the BCH car fleet. However, this transition is placing strain on financial performance, with leasing companies showing a 36% deterioration in future margin confidence as they continue to absorb losses linked to EV residual values.

The current economic climate is also influencing how customers manage their lease agreements. Leasing companies report a growing trend towards contract extensions, as businesses and consumers look to defer replacement cycles and manage rising costs. This shift is keeping vehicles on fleet for longer and reflects a more cautious approach to long-term financial commitments.

Toby Poston, BVRLA Chief Executive said: “Crossing the two million vehicle milestone is a significant achievement for the leasing sector and underlines the strength of demand for its flexible, low-risk model. However, this growth is being delivered against a backdrop of real financial strain.”

“Persistent pressure on electric vehicle residual values, combined with wider economic uncertainty and global unrest, means margins are being squeezed like never before. Sustained progress will depend on greater market stability and clear, consistent policy signals from Government.”

Toby Poston, Chief Executive, BVRLA Tweet

Vans up, but not electric ones

Where steady decline has featured in previous reports, the BVRLA van lease fleet finally achieved growth in Q4, 2025 as ‘age has caught up with maintenance requirements, forcing renewals that leasing is well positioned to finance,’ the Outlook says.

On the other hand it observes that ‘the electrification of vans is progressing glacially slowly – leasing companies are pessimistic about future residual values and say the majority of customers refuse to pay more for vehicles that offer less in terms of both capability and operational flexibility.’

The Leasing Outlook Report also features commentary from Fleet Assist, cap hpi, and Autotrader, providing insights across vehicle repair trends, LCV values and market stability

The full report can be read and downloaded on the BVRLA website.