Enquiries for 18-month van leases surged by 2,617% in the past year, rising from just 0.6% in 2023 to 16% last year, marking one of the most significant shifts in the UK leasing market.
The latest Leasing.com Insights Report attributed the surge to businesses and individuals seeking greater flexibility in their leasing options, and suggested that this showed growing demand for short-term leasing solutions driven by cost efficiency and availability. Business van lease payments decreased by 15%, while personal leases fell by 12%, making short-term leasing a more attractive option.
Additionally, 59% of enquirers opted for in-stock vans over factory orders, up from 37% the previous year, indicating a preference for immediate availability and reduced wait times.
Enquiries for electric van leasing rose by 36% last year, supported by falling costs, Government incentives, and sustainability targets. By the end of this year, electric vehicles are projected to account for over 35% of the leasing market, with manufacturers such as Volkswagen, Renault, and BYD expanding their model range to meet demand. However, the report notes that improving the UK’s charging infrastructure remains crucial for continued growth in this sector.
Mike Fazal, CEO at Leasing.com, said: “Extending the Plug-in Van Grant is a positive step for businesses looking to electrify their fleets. By lowering upfront costs, it makes electric vans more accessible, particularly for SMEs in logistics, delivery, and trade sectors where margins are tight and cost certainty is crucial.”
The Ford Ranger remained the most leased van in the UK, but its market share declined to 18% from 50% in 2023. The Nissan Townstar followed at 11%, reflecting increasing demand. Land Rover’s Defender accounted for 10% of enquiries, while the Volkswagen ID. Buzz and Amarok saw the largest growth, reaching 10% and 9%, respectively.
The rising interest in electric vans was evident in models such as the Renault Kangoo (7%) and the BYD ETP3 (4%), signalling a shift toward greater EV adoption in the UK’s van leasing sector.
Ford remained the most leased van manufacturer, accounting for 25% of all leasing enquiries, despite a drop from 56% in 2023. Volkswagen and Renault experienced significant growth, with Volkswagen capturing 20% of leasing enquiries and Renault increasing to 8%.
BYD also made notable gains, rising to 4% from near zero in 2023, while Toyota (9%) and Ford (31%) saw the most significant declines. The shifting preferences towards electric vans and flexible leasing options continue to reshape the competitive landscape in the UK leasing market.
