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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.”

 

 April 2024

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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

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