kilkelly geraldine

Asset finance new business (primarily leasing and hire purchase) in the UK grew by 6% during Q3 2018 compared to the same period last year, according to new figures released by the Finance & Leasing Association (FLA).

For the year to the end of September, new business grew by 3%, the new research shows.

The biggest growth is in IT finance, which was up 47% in the third quarter and 60% in September, compared to the same period last year.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Asset finance new business continued to grow in the third quarter despite continuing uncertainty about the outcome of the Brexit negotiations. The market is on track to report new business growth of around 5% in 2018 as a whole, reaching a record annual total of £33 billion.”

 

 Sep 18

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Total FLA asset finance (£m)  2,747 0 8,007 +6 32,080 +3
Total excluding high value (£m) 2,534 -5 7,479 +4 30,136 +3
By asset:
Plant and machinery finance (£m) 524 +3 1,651 +5 6,523 +1
Commercial vehicle finance (£m) 698 -3 1,910 +7 7,694 +3
IT equipment finance (£m) 345 +60 820 +47 2,781 +24
Business equipment finance (£m) 206 -6 648 +4 2,557 +1
Car finance (£m) 687 -20 2,132 -8 9,041 -3
Aircraft, ships and rolling stock finance (£m) 
11 -44 53 +56 248 -59
By channel:
Direct finance (£m) 1,210 -2 3,712 +4 15,051 +1
Broker-introduced finance (£m) 517 +7 1,541 +16 5,898 +11
Sales finance (£m) 807 -15 2,226 -2 9,187 +1
By product:
Finance leasing (£m) 440 +28 1,038 +12 3,972 +6
Operating leasing (£m) 483 -24 1,440 -9 6,071 -10
Lease/Hire purchase (£m) 1,490 +2 4,372 +7 17,585 +6
Other finance (£m) 233 0 838 +22 3,080 -3