In 2025, we've observed that vehicle leasing has been dominated by SUVs and crossovers, which account for roughly 60% of all business leasing inquiries. Electric vehicles (EVs) have also seen a significant surge, often representing around a third of new lease orders as drivers take advantage of lower running costs and tax incentives.
Most popular vehicle types
- SUVs & Crossovers: This remains the most popular body style due to high demand for family practicality. Notable 2025 models include the Jaecoo 7, which has emerged as a popular new Chinese leased vehicle, along with the stalwarts like the Peugeot 3008, Peugeot 2008, Nissan Qashqai, Hyundai Tucson, and Volkswagen Tiguan.
- Hatchbacks: Premium, practical hatchbacks continue to be a staple for both personal and business use. The BMW 1 series, Volkswagen Golf, Peugeot 208, MG 3 and Vauxhall Corsa are among the popular vehicles in this category.
- Electric Vehicles (EVs): EVs are nearly twice as likely to be leased as purchased outright in the UK. The Tesla Model 3 and Volkswagen ID.4 are leading 2025 lease models.
Why lease rather than buying?
Leasing is favoured for its lower initial costs and the convenience of driving a brand-new vehicle every few years.
- Lower monthly payments: Lease payments are typically lower than loan repayments because you only pay for the vehicle's depreciation over the lease term, rather than its full value.
- Minimal upfront costs: Leasing usually requires a smaller initial payment compared to the large deposit or full cash amount needed for buying.
- Frequent upgrades: Most lease terms last 2–4 years, allowing you to regularly switch to newer models with the latest safety technology and features.
- No resale hassle: You don't have to worry about the car's declining market value or the stress of finding a buyer. At the end of the term, you simply return the vehicle.
- Warranty and maintenance: Leased cars are typically brand new and covered by a manufacturer’s warranty for the duration of the lease. Many contracts also include maintenance packages, covering routine services and road tax.
- Tax benefits for business: For business owners, lease payments can often be deducted as a business expense, and VAT-registered companies may reclaim a portion of the VAT.
What offers are currently running at Xcite Car Leasing?
Because these change so frequently you're best off heading to our special offers page where you can find all of our latest offers on vehicles ranging from SUVs through to hatchbacks, electric vehicles and vans. Use our filter to refine your search to the exact vehicle types you're looking for or if it's specifically electric vehicles you're after, you can head straight to our electric leases page.