If you've been thinking about making the move to an electric car, the news this week makes for compelling reading. The latest figures from the British Vehicle Rental and Leasing Association (BVRLA) confirm that the UK's vehicle lease fleet has grown 7.2% year-on-year to surpass two million vehicles — and industry insiders are calling it a buyer's market. With manufacturers chasing ambitious Zero Emission Vehicle (ZEV) Mandate targets, new models arriving throughout the summer, and salary sacrifice schemes growing at a record pace, the best electric car lease deals in the UK have arguably never been more accessible.
The UK Leasing Market Is Booming — and Electric Cars Are Leading the Way
The BVRLA's Leasing Outlook for July 2026 makes for encouraging reading if you're considering a lease. The total UK lease fleet now stands at more than 2.05 million vehicles, with the car fleet up 8.4% year-on-year. The association describes the car leasing sector as a "buyer's market" — a direct result of manufacturers offering highly competitive deals as they work to meet their government-mandated ZEV targets.
Under the current ZEV Mandate, 33% of all new cars sold in the UK in 2026 must be fully electric. That legal requirement is having a direct impact on the deals available to consumers: brands are motivated to move electric cars, and that motivation translates into competitive monthly rentals. Whether you're looking to lease personally or through your business, there has rarely been a better moment to shop around.
Salary Sacrifice Has Exploded — and Electric Vehicles Are the Reason
Perhaps the most striking number from the BVRLA's July 2026 report is this: salary sacrifice car schemes have grown by a staggering 164.7% year-on-year. Salary sacrifice has now overtaken personal contract hire (PCH) as a funding route on the BVRLA fleet — a significant shift in how British workers are accessing new vehicles.
Salary sacrifice allows employees to lease a car through their employer, with the cost deducted from their gross salary before tax and National Insurance are calculated. For electric cars in particular, the numbers are compelling. Battery electric vehicles attract a Benefit-in-Kind (BIK) tax rate of just 4% in 2026/27 — rising incrementally to 9% by 2031, but remaining far below the 36% maximum that applies to petrol and diesel models.
For a 40% taxpayer driving an electric car on salary sacrifice, the effective monthly saving versus a comparable petrol model can run to hundreds of pounds — often including insurance, maintenance, and breakdown cover. It is little wonder that employers across the UK are rapidly introducing or expanding EV salary sacrifice as an employee benefit.
What Are the Best Electric Car Lease Deals Right Now?
With manufacturers keen to hit their ZEV Mandate numbers and leasing companies reporting a healthy flow of renewals, monthly electric car lease rates have continued to fall. Popular sub-£300 per month options in July 2026 include the MG4, BYD Dolphin Surf, and Vauxhall Corsa Electric — models that would have cost considerably more to lease just two years ago.
The Renault R4, one of the most eagerly awaited new arrivals of 2026, is available for under £270 per month on personal contract hire with a modest initial payment — a practical electric family car at a price that genuinely competes with petrol equivalents.
For business customers, the advantages stack up further. Company car drivers benefit from that 4% BIK rate, meaning the tax bill on even a mid-range electric car is minimal. Electric van deals are equally competitive: the ZEV Mandate requires 24% of new vans sold in 2026 to be zero-emission, pushing fleet-friendly rates on models like the Dacia Spring commercial variant (from around £85 per month plus VAT) and the Volkswagen ID. Buzz Cargo (from around £180 per month plus VAT).
New Models Keep Arriving — and the Choice Has Never Been Better
One of the most exciting aspects of the 2026 electric car market is the sheer breadth of choice. The Toyota Urban Cruiser, Kia PV5, and Volvo ES90 are among the newest arrivals, while the Jaguar GT — a striking four-door electric saloon signalling the reinvention of the brand — is expected to reach customers this summer. A seven-seat Skoda electric SUV is also on its way, giving families a genuine large-EV option.
This expanding model range means there is now a viable electric lease option at almost every budget and body style — from nimble city cars to full-size family SUVs, and from compact commercial vans to larger panel vans capable of covering serious daily mileage. The days of making significant compromises to go electric are largely behind us.
Whether you are a private individual looking for an affordable monthly payment, a company director seeking the most tax-efficient company car, or a fleet manager working towards your organisation's sustainability goals, the landscape in July 2026 is unusually favourable. The combination of manufacturer incentives, ZEV Mandate pressure, low BIK rates, and a widening choice of models makes right now one of the best times to explore the best electric car lease deals the UK has to offer. At ABC Leasing Hub, our team works across 50-plus brands to find you the right deal at the right price. Get in touch today and let us do the hard work for you.