October 17, 2025
Sara Davies
We’re seeing an evolution in driver habits with lease vehicles staying on the road longer and covering more miles. Customers are increasingly choosing extended lease terms, including four- and even five-year fleet leasing contracts.
According to FN50 2024 fleet data the average replacement mileage where business lease cars are concerned, has risen by almost 2,000 miles year-on-year, with cars now being de-fleeted at around 47,265 miles, up from 45,579 miles. After several years of decline (falling below 50,000 miles for the first time in 2020) mileages are beginning to climb again, reflecting a shift in the way businesses manage their vehicles.
Despite this, three-year contracts remain the most popular, making up 48.8% of all leases, while four-year terms account for 31.4%. Increasingly, however, drivers are recognising the advantages of longer five-year (60-month) leases, which provide greater stability, sometimes lower monthly payments, and improved access to electric vehicles at more affordable rates.
Longer cycles and on-time returns
The data shows a lengthening replacement cycle, with cars now replaced on average every 38.2 months, compared with 36.2 months the previous year. On-time vehicle returns have increased, rising from 36.2% in 2023 to 39.9%, while late returns dropped from 52.9% to 43.4%.
With vehicle supply now much stronger than in recent years, these changes point to a more stable, predictable leasing environment — one that benefits both customers and fleet operators alike.
Fleet demand driving the market
Fleets continue to play a crucial role in driving new car registrations. The Society of Motor Manufacturers and Traders (SMMT) reports that more than 925,000 new cars were registered to fleet and business customers between January and September 2024 — 125,000 more than in the same period last year.
Why more fleets are choosing 60-month leases
As reliability improves and annual mileage decreases, many businesses are finding that longer lease terms offer excellent value. A five-year lease can help reduce monthly outlay and spread costs more efficiently, which is ideal for EVs, while residual values are still stabilising.
Longer lease terms from leading car lease firms like Wessex Fleet can help fleets to keep costs down, providing price certainty amid a volatile used-EV market. With EV resale values under pressure, extending the lease term helps balance the financial risk for both customer and provider and allows drivers to enjoy their models for longer.
A changing landscape
The industry continues to evolve rapidly, supported by advances in AI-driven fleet management, electric mobility, and emissions strategies. With several new entrants and leadership changes among the top leasing firms, innovation and flexibility remain at the heart of the sector’s growth.
While the cost on a 60-month contract can never be guaranteed to be lower than a standard two- or three-year term, fleet managers would be wise to invetigate which models with which terms could glean savings over a longer term, and weight up those cost savings against any downsides, which may include maintenance and MOT requirements.
Enjoyed this article? Read more of our latest blogs below:
- Wessex Fleet Exceeds Market Expectations
- First for Fleet Assist’s New SMR Authorisation Service
- Why Driver Training Matters Now More Than Ever
- EVs for High Mileage Drivers
For all our latest news and blogs click HERE.
Or are you looking to understand the company car, fleet management or any other aspect of fleet vehicles? If so, then check out our Guide Pages.