Asset Finance


Consumer Finance


Motor Finance


March sees record level of asset finance new business

13 May 2016

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 10% in March, compared with the same month last year, and by 8% in Q1 2016, compared with the same period in 2015.

IT equipment finance and commercial vehicle finance grew in March by 29% and 5% respectively, but plant and machinery finance fell by 2% over the same period.

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

“March saw the asset finance market report its highest level of monthly new business on record. Growth was broad-based with the exception of a fall in new finance for plant and machinery. The slowdown in this sector reflects the apparent weakness of the industrial sector reported in the latest national statistics.”

Mar

2016

% change on prev. year

3 months to Mar 2016

% change on prev. year

12 months to Mar 2016

% change on prev. year

Total FLA asset finance (£m)

3,419

+10

7,484

+8

29,665

+9

Total excluding high value (£m)

3,086

+5

7,053

+6

28,524

+9

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

609

-2

1,429

+1

5,826

+4

Commercial vehicle finance (£m)

774

+5

1,771

+9

7,024

+13

IT equipment finance (£m)

260

+29

482

0

2,250

+26

Business equipment finance (£m)

226

+11

550

+3

2,093

-6

Car finance (£m)

1,058

+6

2,224

+9

9,123

+10

Aircraft, ships and rolling stock finance (£m)

22

-84

83

-63

415

-8

 

By channel:

Direct finance (£m)

1,476

+2

3,564

+9

14,389

+11

Broker-introduced finance (£m)

518

+11

1,274

+4

5,076

+7

Sales finance (£m)

1,092

+6

2,215

+4

9,060

+8

 

By product:

Finance leasing (£m)

367

-2

841

-4

3,695

+1

Operating leasing (£m)

799

-1

1,696

+3

6,706

+8

Lease/Hire purchase (£m)

1,611

-1

3,728

+4

15,221

+10

Other finance (£m)

642

+119

1,218

+48

4,043

+20

Note to editors:

  1. 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.