Asset finance new business fell by 3% in August 2025
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) in August 2025 fell by 3% compared with the same month in 2024. In the eight months to August 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 August by 7% and 4% respectively, compared with the same month in 2024. By contrast, the commercial vehicle (CV) finance and IT equipment finance sectors reported falls in new business of 17% and 11% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said:“The asset finance market reported a modest fall in new business in August with performances varying across asset sectors. The weakness in the CV finance sector mirrored lower new CV registrations.
“FLA’s Q3 2025 Industry Outlook Survey showed that more than half of asset finance respondents expected some decrease in business investment over the next year, while the proportion of respondents anticipating an increase in new business over the next 12 months fell from 79% to 71% between Q2 and Q3 2025.
“As we approach the Autumn Budget, we urge the government to deliver a growth agenda that restores business confidence. The asset finance market directly supports the real economy, funding around a third of all UK investment in vehicles machinery and equipment. To help our members do even more, we are calling for leasing to be brought into the full expensing regime, and to create a new, targeted green tax allowance.
| Aug 2025 | % change on prev. year | 3 months to Aug 2025 | % change on prev. year | 12 months to Aug 2025 | % change on prev. year | |
| Total FLA asset finance (£m) | 2,684 | -3 | 9,496 | 1 | 39,924 | 1 |
| Total excluding high value (£m) | 2,590 | -4 | 9,088 | 1 | 38,198 | 2 |
| Data Extracts:
By asset (excluding high value): | ||||||
| Plant and machinery finance (£m) | 570 | -4 | 1,955 | 4 | 7,533 | 1 |
| Commercial vehicle finance (£m) | 669 | -17 | 2,430 | -5 | 10,876 | 2 |
| IT equipment finance (£m) | 104 | -11 | 303 | -1 | 1,208 | -1 |
| Business equipment finance (£m) | 151 | 4 | 466 | 5 | 1,746 | 0 |
| Car finance (£m) | 860 | 4 | 3,138 | 3 | 13,539 | 0 |
| By channel: | ||||||
| Direct finance (£m) | 1,133 | -3 | 3,961 | 1 | 17,514 | 3 |
| Broker-introduced finance (£m) | 669 | -3 | 2,205 | 2 | 8,447 | -1 |
| Sales finance (£m) | 788 | -8 | 2,923 | 1 | 12,238 | 2 |
| By product: | ||||||
| Finance leasing (£m) | 223 | -15 | 721 | -12 | 2,938 | -12 |
| Operating leasing (£m) | 695 | -5 | 2,444 | 0 | 10,452 | 4 |
| Lease/Hire purchase (£m) | 1,341 | -5 | 4,849 | -1 | 20,588 | 0 |
| Other finance (£m) | 331 | 12 | 1,137 | 18 | 4,561 | 9 |