Asset finance new business grew by 31% in April 2024
New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in April 2024 by 31% compared with the same month in 2023. In the first four months of 2024, new business was 7% higher than in the same period in 2023.
The business new car finance and commercial vehicle finance sectors reported new business up in April by 35% and 45% respectively, compared with the same month in 2023. New business in the plant and machinery finance and business equipment finance sectors increased by 9% and 4% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The strong performance by the asset finance market in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter. The vehicle finance sectors have continued to drive growth this year with new business up by 15% in the first four months of 2024. By contrast, the machinery and equipment finance sectors reported new business 9% lower over the same period.
“Key to any new Government initiatives to boost long-term economic growth will be increasing business investment. The asset finance industry which has funded as much as 40% of UK investment in machinery, equipment and vehicles will play a pivotal role in supporting the drive among businesses of all sizes to achieve growth and higher productivity sustainably.”
Apr 2024 | % change on prev. year | 3 months to Apr 2024 | % change on prev. year | 12 months to Apr 2024 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,782 | 31 | 10,542 | 7 | 39,431 | 10 |
| Total excluding high value (£m) | 3,470 | 27 | 9,992 | 8 | 37,602 | 10 |
| Data Extracts:
By asset: | ||||||
| Plant and machinery finance (£m) | 697 | 9 | 2,025 | -12 | 7,419 | -11 |
| Commercial vehicle finance (£m) | 997 | 45 | 2,916 | 14 | 10,338 | 11 |
| IT equipment finance (£m) | 105 | 33 | 296 | -7 | 1,178 | -14 |
| Business equipment finance (£m) | 149 | 4 | 441 | -10 | 1,829 | -6 |
| Car finance (£m) | 1,247 | 31 | 3,558 | 15 | 13,806 | 28 |
| Aircraft, ships and rolling stock finance (£m) | 53 | 82 | 113 | 48 | 351 | 13 |
| By channel: | ||||||
| Direct finance (£m) | 1,615 | 32 | 4,525 | 10 | 17,332 | 14 |
| Broker-introduced finance (£m) | 752 | 16 | 2,246 | 2 | 8,347 | 3 |
| Sales finance (£m) | 1,103 | 29 | 3,221 | 8 | 11,924 | 10 |
| By product: | ||||||
| Finance leasing (£m) | 244 | 5 | 787 | -6 | 3,415 | 0 |
| Operating leasing (£m) | 895 | 43 | 2,558 | 18 | 9,799 | 33 |
| Lease/Hire purchase (£m) | 1,981 | 27 | 5,700 | 5 | 20,622 | 3 |
| Other finance (£m) | 569 | 68 | 1,169 | 16 | 4,284 | 15 |
