Finance & Leasing Association7 June 2019
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 7% in April, compared with the same month in 2018.
New business in the plant and machinery finance and business equipment finance sectors was up by 8% and 9% respectively, while commercial vehicle finance new business increased by 23% over the same period.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance market has made a great start to the second quarter of 2019, recording its seventh consecutive month of new business growth in April.
“Growth in new finance for commercial vehicles has been particularly robust in recent months, which may in part reflect the bringing forward of investment ahead of the introduction of EU regulation that requires new CVs to have smart tachographs from June 2019.”
| Apr 2019 |
% change on prev. year |
3 months to Apr 2019 |
% change on prev. year |
12 months to Apr 2019 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,938 |
+7 |
8,971 |
+11 |
33,904 |
+7 |
| Total excluding high value (£m) |
2,816 |
+10 |
8,418 |
+9 |
31,586 |
+5 |
|
|
|
|
|
|
|
|
| Data Extracts: By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
603 |
8 |
1,852 |
7 |
7,213 |
9 |
| Commercial vehicle finance (£m) |
827 |
23 |
2,511 |
23 |
8,774 |
14 |
| IT equipment finance (£m) |
184 |
16 |
585 |
7 |
2,833 |
16 |
| Business equipment finance (£m) |
225 |
9 |
665 |
6 |
2,691 |
4 |
| Car finance (£m) |
889 |
2 |
2,430 |
1 |
8,897 |
-3 |
| Aircraft, ships and rolling stock finance (£m) |
15 |
0 |
143 |
174 |
384 |
34 |
| By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,476 |
16 |
4,263 |
10 |
15,951 |
5 |
| Broker-introduced finance (£m) |
561 |
10 |
1,735 |
17 |
6,411 |
15 |
| Sales finance (£m) |
779 |
0 |
2,421 |
3 |
9,224 |
0 |
| By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
370 |
16 |
1,152 |
16 |
4,289 |
11 |
| Operating leasing (£m) |
551 |
13 |
1,619 |
0 |
6,109 |
-7 |
| Lease/Hire purchase (£m) |
1,748 |
9 |
5,104 |
11 |
19,001 |
11 |
| Other finance (£m) |
205 |
11 |
797 |
29 |
3,252 |
9 |
Note to editors:
- In 2018, FLA members provided £136 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.
