New 2025 set to be introduced in just months will increase "lease costs", according to leading specialists.

Experts at warned motorists thinking of leasing a vehicle will be "affected" by the new rules from April.

Previous statistics have suggested that over 1.6 million people in the UK now lease a vehicle.

Rough estimates suggest that between 20% to 30% of new cars are leased in the UK.

Contract hire leasing agreements are where the lender retains ownership of the vehicle throughout the term.

But despite road users not owning their vehicle, motorists

said: "If you're considering leasing a new car, whatever the fuel type, the new 2025 will affect you if the car is delivered after the 1st April 2025.

"Contract Hire includes the cost of Road Tax for the duration of the agreement, therefore the lease costs will increase in line with the VED changes for the vehicle."

Meanwhile, motoring firm confirmed customers will be "liable to pay the amount of the increase" if charges rise during an agreement term.

VED car tax rates come April 1, 2025 with , and electric car owners set to feel the sting.

Standard VED rates will rise in line with Retail Price Index (RPI) inflation while first-year charges will double in many cases.

for the first time ever with £100 more to use the roads.

, a leading vehicle leasing service, said: "Road tax on a contract hire car is administered entirely by the funder of your lease deal as they are the registered keeper of the vehicle.

"Therefore, no action is required from yourself regarding taxing your new vehicle as it is all taken care of by them ahead of delivery.

"On the rare occasion that a road tax increase applicable to your lease vehicle occurs after your lease rates are agreed and during your term, you will be liable for this uplift. Your funder will contact you directly if this occurs.

"For example, if road tax costs increase by £5 per annum on your vehicle, your funder will contact you to arrange payment for this difference."