Asset finance new business grew by 12% in April 2023
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in April 2023 by 12% compared with the same month in 2022. In the first four months of 2023, new business was 13% higher than in the same period in 2022.
The business new car finance and business equipment finance sectors reported new business up in April by 48% and 13% respectively, compared with the same month in 2022. The commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 2% and 6% 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 year of sustained monthly new business growth in April supported by continued strong growth in the business new car finance sector. Annual new business in April at £35.3 billion was only 1% lower than the pre-pandemic peak in 2019.
“Asset finance supports business investment across all major industry sectors and business size. New business provided to larger businesses grew by 27% in April, to the manufacturing sector increased by 30%, and to the services sector grew by 11%, compared with April 2022.”
|% change on prev. year||3 months to
|% change on prev. year||12 months to
|% change on prev. year|
|Total FLA asset finance (£m)||2,842||12||9,666||15||35,282||11|
|Total excluding high value (£m)||2,674||9||9,121||19||33,600||14|
|Plant and machinery finance (£m)||604||-6||2,188||11||8,016||8|
|Commercial vehicle finance (£m)||674||-2||2,506||15||9,189||9|
|IT equipment finance (£m)||79||-20||320||-39||1,367||-17|
|Business equipment finance (£m)||141||13||485||-5||1,929||-1|
|Car finance (£m)||945||34||3,072||37||10,743||25|
|Aircraft, ships and rolling stock finance (£m)||29||18||76||1||310||-11|
|Direct finance (£m)||1,209||15||4,068||28||15,103||21|
|Broker-introduced finance (£m)||628||9||2,145||16||7,877||15|
|Sales finance (£m)||837||3||2,909||10||10,620||3|
|Finance leasing (£m)||231||-10||832||-4||3,407||7|
|Operating leasing (£m)||609||34||2,116||46||7,206||19|
|Lease/Hire purchase (£m)||1,535||3||5,354||11||19,709||11|
|Other finance (£m)||334||33||998||3||3,704||3|