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The leasing sector held its ground in 2024 in the face of changeable consumer confidence, growing a modest 0.65% year on year. Budgetary constraints and economic uncertainty took hold of some segments, causing demand to go in different directions between personal and business contracts, with a similar divergence between vans (volume down 10.96%) and cars (up 4.9%). 

The popularity of company-provided electric vehicles saw the BVRLA’s leasing fleet grow 1.4% in the last 12 months, offsetting lower demand for vehicles on personal lease agreements and vans. The association’s latest Leasing Outlook report shows that salary sacrifice continues to drive growth in the sector, it is up 51% and sustaining the UK’s transition to cleaner, greener models. 

Private motorists are beginning to catch up to business users when it comes to EV adoption, as personal lease agreements (PCH: personal contract hire) tracked in line with ZEV mandate targets last quarter. Battery Electric Vehicles accounted for 21% of new PCH additions to the BVRLA’s leasing fleet in Q2 2024, although the association is warning that the uplift risks being short-lived if the used EV market is not stabilised.

The varied trajectories seen in electric vehicle adoption continue to go in opposite directions, creating concerns about the long-term success of the drive to decarbonise. That is according to the latest Leasing Outlook report from the BVRLA, which shows a growing divide between company-provided cars and private motorists when it comes to EV demand. 

The split between business and private demand for new vehicles is becoming a gulf, with the BVRLA’s latest Leasing Outlook report showing the two market segments moving in opposite directions.

The BVRLA leasing fleet has reached a six-year high, recording 2.2% year-on-year growth to approach levels last seen in Q4 2017. The association’s latest Leasing Outlook Report shows the total lease fleet nudging above 1.9m vehicles thanks to increased demand for leased vans and Business Contract Hire (BCH) cars.

The BVRLA Leasing Outlook report combines the aggregated market data and insight of experts from across the sector to provide an unrivalled perspective of what is happening to the market and where it is heading.