Asset Finance


Consumer Finance


Motor Finance


Asset finance up 9% in May

8 July 2016

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 9% in May, compared with the same month last year.

Commercial vehicle finance increased by 21% in May compared with the same month in 2015. Business equipment finance and IT equipment finance were up 27% and 32% respectively over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“Growth in asset finance new business rebounded in May, as a wider range of asset sectors reported strong growth. The latest official data from the Office for National Statistics confirmed our estimates that FLA asset finance providers funded 31.8% of total UK investment in machinery, equipment and purchased software in the twelve months to March – the highest percentage for almost seven years.”

May

2016

% change on prev. year

3 months to May 2016

% change on prev. year

12 months to May 2016

% change on prev. year

Total FLA asset finance (£m)

2,353

+9

8,364

+7

29,916

+8

Total excluding high value (£m)

2,315

+9

7,989

+6

28,823

+8

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

451

-1

1,528

-3

5,796

+2

Commercial vehicle finance (£m)

582

+21

1,965

+9

7,143

+14

IT equipment finance (£m)

187

+32

584

+22

2,296

+22

Business equipment finance (£m)

177

+27

600

+13

2,139

-3

Car finance (£m)

733

-6

2,688

0

9,071

+5

Aircraft, ships and rolling stock finance (£m)

31

+125

112

-42

453

+1

 

By channel:

Direct finance (£m)

1,195

+9

4,056

+4

14,524

+8

Broker-introduced finance (£m)

443

+17

1,418

+15

5,212

+9

Sales finance (£m)

677

+5

2,515

+4

9,087

+7

 

By product:

Finance leasing (£m)

289

+31

945

+16

3,833

+8

Operating leasing (£m)

555

+11

1,959

+7

6,847

+9

Lease/Hire purchase (£m)

1,258

+9

4,255

+1

15,265

+7

Other finance (£m)

251

-9

1,205

+30

3,971

+11

Note to editors:

  1. The FLA’s response to the recent EU referendum can be found in this press release.
  2. In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £29 billion of finance was provided to businesses and the public sector.  FLA members financed almost 32% of UK investment in machinery, equipment and purchased software in the UK in 2015.