Asset Finance


Consumer Finance


Motor Finance


Asset finance new business more than £3.3 billion in March

11 May 2018

New figures released today 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.

Commenting on the figures, 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.”

 

Mar 2018

% change on prev. year

3 months to Mar

2018

% change on prev. year

12 months to Mar

2018

% change on prev. year

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

-18

 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

 

Note to editors:

  1. In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2017.
  2. For media enquiries, please contact the FLA press office on 020 7420 9656.