Asset finance new business fell by 7% in April 2025
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) fell in April 2025 by 7% compared with the same month in 2024. In the first four months of 2025, new business was 2% higher than in the same period in 2024.
The commercial vehicle finance and business new car finance sectors reported falls in new business in April of 8% and 4% respectively, compared with the same month in 2024. The business equipment finance and plant and machinery finance sectors each reported new business contractions of 5% over the same period.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “April saw the asset finance market report its first fall in new business so far this year, with high value deals weighing on growth. Excluding facilities of more than £20m, new business was only 1% lower than in April 2024, and grew by 3% in the first four months of 2025.
“The FLA’s Q2 2025 industry outlook survey results were in line with the previous quarter as more than three-quarters of asset finance respondents expected some increase in new business over the next year despite subdued business investment. The prospect of further cuts in interest rates, and the potential for growth in key sectors such as construction and green assets should contribute to single-digit new business growth by value over the next 12 months.”
| Apr 2025 | % change on prev. year | 3 months to Apr 2025 | % change on prev. year | 12 months to Apr 2025 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,507 | -7 | 10,686 | 2 | 39,954 | 1 |
| Total excluding high value (£m) | 3,429 | -1 | 10,352 | 4 | 38,171 | 2 |
| Data Extracts:
By asset: | ||||||
| Plant and machinery finance (£m) | 667 | -5 | 2,077 | 1 | 7,607 | 1 |
| Commercial vehicle finance (£m) | 934 | -8 | 2,893 | -3 | 11,127 | 5 |
| IT equipment finance (£m) | 102 | 0 | 316 | 11 | 1,312 | 13 |
| Business equipment finance (£m) | 142 | -5 | 471 | 6 | 1,740 | -5 |
| Car finance (£m) | 1,263 | 1 | 3,758 | 6 | 13,440 | -2 |
| Aircraft, ships and rolling stock finance (£m) | 23 | -57 | 97 | -14 | 301 | -15 |
| By channel: | ||||||
| Direct finance (£m) | 1,629 | 1 | 4,751 | 5 | 17,293 | 0 |
| Broker-introduced finance (£m) | 784 | 4 | 2,225 | -1 | 8,513 | 2 |
| Sales finance (£m) | 1,017 | -8 | 3,376 | 5 | 12,365 | 4 |
| By product: | ||||||
| Finance leasing (£m) | 249 | 4 | 692 | -11 | 3,078 | -10 |
| Operating leasing (£m) | 1,016 | 13 | 2,887 | 13 | 10,501 | 7 |
| Lease/Hire purchase (£m) | 1,757 | -11 | 5,615 | -1 | 20,667 | 0 |
| Other finance (£m) | 408 | -28 | 1,227 | 6 | 4,283 | 1 |