Asset finance new business grew by 2% in January 2025
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in January 2025 by 2% compared with the same month in 2024. In the twelve months to January 2025, new business was 3% higher than in the same period in 2024.
The commercial vehicle finance and IT equipment finance sectors reported new business up in January by 10% and 43% respectively, compared with the same month in 2024. The business new car finance sector reported a fall in new business of 2% 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 second consecutive month of growth in January with the commercial vehicle finance sector making a strong start to 2025. New asset finance lending to SMEs grew in January by 2%, while to larger businesses held steady.
“The FLA’s Q1 2025 industry outlook survey suggests that more than three-quarters of asset finance respondents expect some increase in new business over the next year despite a challenging economic environment. Supporting businesses to invest in greener assets and more efficient technology in a lower interest rate environment should contribute to single-digit new business growth over the next year.”
| Jan 2025 | % change on prev. year | 3 months to Jan 2025 | % change on prev. year | 12 months to Jan 2025 | % change on prev. year | |
| Total FLA asset finance (£m) | 2,945 | 2 | 9,508 | 2 | 39,793 | 3 |
| Total excluding high value (£m) | 2,854 | 3 | 8,969 | 1 | 37,793 | 3 |
| Data Extracts:
By asset: | ||||||
| Plant and machinery finance (£m) | 493 | -6 | 1,634 | -2 | 7,486 | -3 |
| Commercial vehicle finance (£m) | 826 | 10 | 2,642 | 11 | 11,049 | 10 |
| IT equipment finance (£m) | 122 | 43 | 365 | 18 | 1,301 | 8 |
| Business equipment finance (£m) | 121 | 0 | 401 | -9 | 1,691 | -9 |
| Car finance (£m) | 988 | -2 | 3,157 | -6 | 13,203 | 0 |
| Aircraft, ships and rolling stock finance (£m) | 8 | -73 | 68 | 1 | 316 | 0 |
| By channel: | ||||||
| Direct finance (£m) | 1,340 | 2 | 4,166 | 0 | 17,053 | 1 |
| Broker-introduced finance (£m) | 593 | -5 | 1,842 | -4 | 8,530 | 3 |
| Sales finance (£m) | 921 | 9 | 2,960 | 7 | 12,210 | 5 |
| By product: | ||||||
| Finance leasing (£m) | 193 | -18 | 767 | -9 | 3,168 | -9 |
| Operating leasing (£m) | 796 | 5 | 2,586 | 4 | 10,175 | 8 |
| Lease/Hire purchase (£m) | 1,500 | 5 | 4,724 | 2 | 20,751 | 2 |
| Other finance (£m) | 365 | 1 | 1,010 | -7 | 4,209 | 3 |