kilkelly geraldine

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) fell in June by 3% compared with the same month in 2017.

There were falls in plant and machinery, business equipment and car finance, while IT, commercial vehicle, aircraft, ships and rolling stock showed year-on-year growth.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market reported new business up in the first half of 2018 by 1% compared with the same period a year earlier. This was in line with modest growth in UK business investment over the same period.”

FLA data also shows strong ongoing growth for broker-introduced finance, which was up 14% year-on-year in June, compared to a decline of 7% in direct finance.

Lease/hire purchase grew in June compared to 2017, while finance lease and operating lease volumes fell.

 June 2018

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3 mths to

June 18

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12 mths to

June 18

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Total FLA asset finance (£m) 

3.044 -3 8,709 +5 31,846 +1
Total excluding high value (£m) 2.869 -4 8.067 +3 30.023 +2
By asset:      
Plant and machinery finance (£m) 
622 -15 1,794 0 6,554 +2
 Commercial vehicle finance (£m) 706 +2 2,039 +9 7,575 +1
 IT equipment finance (£m) 326 +26 632 +15 2,401 +6
 Business equipment finance (£m) 260 -8 670 -2 2,569 +2
 Car finance (£m) 827 -10 2,586 0 9,353 +1
Aircraft, ships and rolling stock finance (£m) 39 +188 69 -76 230 -68
 By channel:       
Direct finance (£m) 1,428  -7 4,018 0 14,920 -1
Broker-introduced finance (£m) 519  +14 1,576 +13 5,903 +8
Sales finance (£m) 922  -6 2,473 +3 9,200 +3
By product:
Finance leasing (£m) 367  -4 1,006 +4 3,878 +4
Operating leasing (£m) 522  -19 1,475 -18 6,220 -9
Lease/Hire purchase (£m) 1,683  +6 4,957 +11 17,370 +5
Other finance (£m) 332  -21 827 -11 3,051 -15

Year-on-year UK asset finance performance by category

FLA Asset Finance June 2018