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.”
Apr 2023 | % change on prev. year | 3 months to Apr 2023 | % change on prev. year | 12 months to Apr 2023 | % 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 |
Data Extracts:
By asset: | ||||||
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 |
By channel: | ||||||
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 |
By product: | ||||||
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 |