Finance & Leasing Association8 February 2019
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew in December by 7% compared with the same month in 2017, and by 5% in Q4 2018 as a whole.
The plant and machinery finance and commercial vehicle finance sectors reported new business up in December by 29% and 18% respectively, compared with 2017, while new finance for IT equipment was up by 16% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance market reported strong growth across many sectors in the final quarter of 2018 which contributed to a record level of new business in 2018 as a whole of almost £33 billion. This represented the eighth consecutive year of growth.
“The temporary increase in the Annual Investment Allowance for plant and machinery from 1 January 2019 announced in the last Budget should support further growth in this sector over the next few months.”
| Dec 2018 |
% change on prev. year |
3 months to Dec 2018 |
% change on prev. year |
12 months to Dec 2018 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,788 |
+7 |
8,236 |
+5 |
32,571 |
+3 |
| Total excluding high value (£m) |
2,501 |
+8 |
7,656 |
+4 |
30,472 |
+3 |
|
|
|
|
|
|
|
|
| Data Extracts: By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
660 |
+29 |
1,786 |
+18 |
6,849 |
+5 |
| Commercial vehicle finance (£m) |
673 |
+18 |
2,218 |
+14 |
7,984 |
+7 |
| IT equipment finance (£m) |
342 |
+16 |
674 |
-9 |
2,714 |
+15 |
| Business equipment finance (£m) |
247 |
+11 |
735 |
+16 |
2,659 |
+4 |
| Car finance (£m) |
617 |
+3 |
2,040 |
-7 |
8,893 |
-5 |
| Aircraft, ships and rolling stock finance (£m) |
30 |
-17 |
123 |
+105 |
312 |
-43 |
| By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,268 |
+13 |
3,833 |
+5 |
15,259 |
+2 |
| Broker-introduced finance (£m) |
502 |
+8 |
1,629 |
+12 |
6,090 |
+12 |
| Sales finance (£m) |
731 |
-1 |
2,195 |
-5 |
9,123 |
-1 |
| By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
381 |
-4 |
1,134 |
+11 |
4,094 |
+8 |
| Operating leasing (£m) |
511 |
0 |
1,531 |
-6 |
5,981 |
-11 |
| Lease/Hire purchase (£m) |
1,532 |
+28 |
4,658 |
+13 |
18,158 |
+8 |
| Other finance (£m) |
249 |
-3 |
637 |
-5 |
3,052 |
-3 |
Note to editors:
- In 2018, FLA members provided £137 billion of new finance to UK businesses and households. £33 billion of finance was provided to businesses and the public sector. FLA members financed around third of UK investment in machinery, equipment and purchased software in the UK in 2018.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
