kilkelly geraldine

New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) fell by 5% in March, compared with the same month last year, and by 3% in Q1 2018 overall.

New finance for business equipment grew in March by 13% compared with the same month in 2017.

Over the same period, the plant and machinery finance and commercial vehicle finance sectors reported falls in new business of 9% and 2% respectively.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market recorded its third highest monthly new business total in March at more than £3.3 billion.

“However, the latest figures reflect some of the recent slowdown in the UK economy, with new finance for agricultural and construction equipment 1% and 8% lower in March than in the same month in 2017.”

 March 18

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Total FLA asset finance (£m) 3,325 -5 7,668 -3 31,459 3
Total excluding high value (£m) 3,229 -3 7,316 -1 29,782 3
Data Extracts:
By asset:
Plant and machinery finance (£m) 654 -9 1,652 -1 6,561 7
Commercial vehicle finance (£m) 849 -2 1,813 -4 7,412 -1
IT equipment finance (£m) 196 -24 497 -3 2,318 2
Business equipment finance (£m) 259 13 622 1 2,586 5
Car finance (£m) 1,041 -7 2,200 -3 9,357 2
Aircraft, ships and rolling stock finance (£m) 33 -39 66 -61 448 -15
By channel:
Direct finance (£m) 1,652 1 3,693 -1 14,940 1
Broker-introduced finance (£m) 579 -4 1,451 4 5,720 8
Sales finance (£m) 998 -10 2,172 -2 9,122 4
By product:
Finance leasing (£m) 406  -1 914 4 3,843 5
Operating leasing (£m) 714 -13 1,531 -11 6,534 -3
Lease/Hire purchase (£m) 1,835 1 4,151 0 16,865 4
Other finance (£m) 304 -19 824 -14 3,150 -6