If you’ve leased before, much of this will feel like déjà vu. If you haven’t leased before - read this.
The basics haven’t changed - they rarely do. Same terminology. Same fine print. Same ‘don’t scratch the alloys’ energy. But 2026’s got a few plot twists, because of course it does.
Unless you spent 2025 hiding under a Vauxhall Astra, you’ll have noticed new electric vehicles (EVs) popping up like politicians at election time, taxes inventing new ways to raid your pay cheque, and how half the UK still believes their credit score magically resets every January like a gym membership.
So, Why Lease in 2026?
Because buying a car outright is still seen as the ultimate financial sin. At least leasing gives you:
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Flexibility – Trade up before your tech feels outdated
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Lower upfront cost – Keep your savings for things that matter
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Get EV ready – access to the latest models & tech
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Predictable monthly payments – budget without the surprises
There are many advantages to leasing a car. But the year 2026 will not come without its challenges. Yes. The government wants more of your money (try to act surprised).
The Tax Stuff
EVs now pay road tax (VED)
From April 2025 onwards, zero-emission cars aren't getting a free ride anymore. You’ll pay £10 in year one. Then the “standard rate” which is expected to be around £155 per year,
Oh, and if the car’s list price is over £40k? You get hit with the Expensive Car Supplement.
Pay-per-mile tax
The government has concocted a charge of around 3p per mile for EV drivers. This is expected to be in play by 2028.
If you’re a high-mileage driver. You’ll want to actually think ahead.
Company car tax (BIK)
EVs will still enjoy lower Benefit-in-Kind rates. But they’re rising slowly. If you’re using salary sacrifice, the deals are still good, just not 2022 good.
The Lease Bits
Personal Contract Hire (PCH)
The circle of lease: Get a new car → make monthly payments → hand the car back → find a new deal. Repeat. No emotional attachment. No messy having to sell it.
Business Contract Hire (BCH)
VAT perks. Tax perks. Basically, if you run a business, congratulations. You qualify for society's only remaining discount.
Salary Sacrifice (EVs only)
The GOAT of leasing options right now. You pay before tax. Which means you keep more of your salary.
Which means you can afford to buy proper Lurpak again.
Cars Actually Worth Leasing in 2026
There’s a car for everyone in 2026. But we’ve shone a light on EVs, (for reasons above). Here are four from Summit Drive that are worth your eyeballs (and your money).
1. MG MGS5 EV 125 kW (49 kWh)
A sporty, compact SUV with a 49 kWh battery and 125 kW motor. A WLTP range somewhere around 211 miles means it’s well-balanced for city driving and weekend trips. Rapid charging is pretty decent too. Ideal for commuters, young families, or anyone who wants a modern, tech-rich EV with real-world usability.
2. BYD Dolphin Surf 65 kW (30 kWh)
One of China’s rising stars on UK roads. A sweet little EV hatchback with a 30 kWh Blade battery, 65 kW motor, and around 137 miles of WLTP range. It’s cheap to lease and super efficient. The vegan-leather interior and 10.1″ rotating screen give it an additional appeal perfect as a second car for daily errands.
3. Renault 5 E-Tech 90 kW Urban Range (40 kWh)
Renault’s iconic '5' reimagined as a compact EV with a 40 kWh battery and 90 kW motor. It’s lightweight, efficient, and retro-stylish. Style-conscious drivers, city dwellers, or EV first-timers who want something distinctly French - this one’s for you.
4. Volkswagen ID.3 125 kW (52 kWh)
We had to add a VW to the list. A reliable, well-known brand, and solid EV credentials. The ID.3 with a 52 kWh battery and a 125 kW powertrain. Has an impressive range of around 241 miles. If you want a proven EV from a brand with EV heritage - choose VW all day long.
Summit Drive’s 2026 Lease Checklist
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Get your mileage right
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Ask if VED is included
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Check for the £40k “rich people tax.”
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Get insurance quotes before you sign
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Add GAP cover
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Photograph the car at delivery
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Understand early termination fees
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Check BIK implications
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Never lease from unregulated providers
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Read the small print
Ready to Lease in 2026?
Don’t wing it. Make sure you make sense of car leasing in 2026. Between tax changes, EV tech leaps, and the odd leasing clause you overlook, it’s easy to find yourself in a puddle of unpaid BIK, extra mileage fees, and regret.
The smartest drivers are the ones who educate themselves. Good news: if you read this far, you just did.
