Asset finance new business held steady in May 2025
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) in May 2025 was at a similar level to the same month in 2024. In the first five months of 2025, new business was 1% higher than in the same period in 2024.
The business new car finance and business equipment finance sectors reported new business up in May by 4% and 6% respectively, compared with the same month in 2024. The commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 4% and 7% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The performance of the asset finance market in April and May reflected a more subdued economic picture in the second quarter of 2025 following a strong first quarter rebound.
“The asset finance market so far this year has reported growth in the value of new business provided to the major industry sectors – services, agriculture, and manufacturing – while holding steady in the construction sector.
“Our latest research suggests the asset finance industry will report single-digit new business growth by value in 2025 as a whole, as businesses look to invest in more efficient technology and greener vehicles, machinery and equipment in a lower interest rate environment.”
| May 2025 | % change on prev. year | 3 months to May 2025 | % change on prev. year | 12 months to May 2025 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,376 | 0 | 11,055 | 0 | 39,866 | 1 |
| Total excluding high value (£m) | 3,234 | 0 | 10,700 | 3 | 38,087 | 1 |
| Data Extracts:
By asset: | ||||||
| Plant and machinery finance (£m) | 642 | -7 | 2,114 | -1 | 7,560 | 0 |
| Commercial vehicle finance (£m) | 893 | -4 | 2,954 | -4 | 11,061 | 3 |
| IT equipment finance (£m) | 86 | -38 | 301 | -13 | 1,259 | 2 |
| Business equipment finance (£m) | 136 | 6 | 487 | 12 | 1,748 | -4 |
| Car finance (£m) | 1,187 | 5 | 3,961 | 7 | 13,451 | -3 |
| Aircraft, ships and rolling stock finance (£m) | 102 | 467 | 142 | 33 | 384 | 10 |
| By channel: | ||||||
| Direct finance (£m) | 1,612 | 15 | 4,993 | 8 | 17,434 | 0 |
| Broker-introduced finance (£m) | 684 | -15 | 2,275 | -2 | 8,396 | 0 |
| Sales finance (£m) | 937 | -10 | 3,432 | -1 | 12,257 | 2 |
| By product: | ||||||
| Finance leasing (£m) | 221 | -16 | 723 | -10 | 3,037 | -12 |
| Operating leasing (£m) | 930 | 2 | 2,988 | 9 | 10,446 | 5 |
| Lease/Hire purchase (£m) | 1,710 | -3 | 5,765 | -2 | 20,620 | 0 |
| Other finance (£m) | 435 | 37 | 1,333 | 10 | 4,400 | 4 |