Demand for flexible motoring will see car leasing double in popularity

Looking at the data: Has the demand actually doubled?

Car leasing has soared in popularity – and for good reason (if we do say so ourselves).

A report from back in 2023, by McKinsey Center for Future Mobility (MCFM), even suggested that we’d see leasing sales double, as consumers seek greater financial flexibility in their car-buying habits.

Over 4,000 drivers from across the United Kingdom, France and Germany answered the McKinsey Mobility Consumer Pulse survey, giving invaluable insight into their future plans.

When asked about circumstances, 61% of those quizzed confirmed they currently owned a car, while as little as 8% leased their vehicle.

When asked about their future plans, 14% of respondents admitted they would consider leasing their next vehicle. There was also a 3% drop in the number of consumers planning to buy their next car outright.

We’ve decided to look into the data and see how accurate these predictions really were.

Has the demand for car leasing doubled?

Let’s jump in and find out.

What flexibility does leasing offer?

Before we dive into the data, let's explore why leasing has gained so much traction – flexibility.

Today's consumers are increasingly wary of long-term commitments and substantial upfront payments, especially in the rapidly evolving EV market.

Why lock yourself into ownership when technology moves so quickly?

Personal Contract Hire (PCH) terms can be as short as 18 months, giving you the freedom to adapt when your circumstances change. It's responsive to life's twists and turns in a way that traditional car ownership simply isn't.

Perhaps your family is expanding?

You can transition from a compact car to a spacious family SUV without the hassle of selling your vehicle at the end or worrying about depreciation.

With new models and technology constantly emerging, particularly in the EV space, today's cutting-edge features can become yesterday's news remarkably quickly. Leasing keeps you current without the long-term financial commitment.

According to the report, vehicle leasing becomes particularly attractive for those entering the electric market.

The figures suggest that leasing is twice as likely to be the preferred option for EV customers – whether they're first-timers wanting to test the waters or experienced drivers seeking more convenience and flexibility.

Leasing creates an affordable pathway into sustainable motoring, while the short-term nature offers protection against the uncertainties of a rapidly developing market.

It's about giving yourself options while keeping your motoring costs predictable.

Why is it beneficial to lease an electric car?

EVs are often more expensive than their combustion cousins, primarily due to their hefty batteries.

When comparing similar models, the difference can be stark. For example, a brand-new Vauxhall Corsa GS starts from £21,655, while the Vauxhall Corsa Electric in the same specification starts from £35,125.

This gap has been closing in recent times, with more electric cars becoming competitively priced against traditional engines.

Leasing allows you to spread this cost into affordable, fixed monthly payments over a set duration. Suddenly, previously unattainable cars become accessible, opening doors for consumers to make the switch towards sustainable driving.

Businesses are also reaping significant benefits.

With tax and National Insurance savings, lower Benefit in Kind (BiK) tax rates and salary sacrifice, and grants for charging infrastructure, there's no better time to go electric – especially with the impending 2030 ban on new petrol and diesel cars.

So, has demand for leasing doubled?

In short… yes!

Since this blog was written and the report came out, our data shows that leasing orders have MORE than doubled. In fact, our sales figures demonstrate remarkable growth across the board:

• Sales grew by over 110% between 2022 and 2024
• That's not just doubling; that's more than the McKinsey report predicted

What's even more interesting is the evolution in the types of leases our customers are choosing:

• In 2023, Business Contract Hire (BCH) and Personal Contract Hire were nearly evenly split (51% BCH vs 49% PCH)
• By 2024, we saw a significant shift toward personal leasing, with PCH making up over 60% of our total orders
• This trend has continued into 2025, with PCH now representing nearly two-thirds of all our leases

The data clearly reflects how consumers are embracing the flexibility of leasing for their personal vehicles – exactly as the McKinsey research predicted.

Electric revolution in full swing

Another fascinating trend revealed in our data is the overwhelming popularity of electric vehicles:

• In 2023, over 70% of our lease orders were for fully electric vehicles
• This jumped to more than 80% in 2024 – showing how leasing has become the preferred way to access EV technology
• While 2025 figures show a slight adjustment, electric vehicles remain the dominant choice for our customers

These figures dramatically exceed the national average for EV adoption, confirming that leasing has become the gateway to electric driving for many consumers.

The flexibility of leasing perfectly complements the rapidly evolving world of electric vehicles, allowing drivers to upgrade as technology improves without the risks of ownership.

What does this mean for the future?

The McKinsey prediction about leasing doubling in popularity has not only come true – it's been exceeded. Our data shows that consumers are increasingly choosing flexible leasing options, particularly for electric vehicles.

As we move closer to the 2030 ban on new petrol and diesel cars, we expect this trend to accelerate further.

Leasing provides the perfect pathway for drivers wanting to embrace the electric revolution without the long-term commitments and risks associated with outright purchase.

For consumers and businesses alike, leasing has transformed from an alternative option to the preferred choice for modern, flexible motoring.