Finance & Leasing Association8 November 2018
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) in September was at a similar level to the same month in 2017. In Q3 2018, new business grew by 6% compared with the same quarter in the previous year.
New finance for IT equipment and plant and machinery grew in September by 60% and 3% respectively, compared with the same month in 2017. Over the same period, the business car finance sector reported a fall in new business of 20%1.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“Asset finance new business continued to grow in the third quarter despite continuing uncertainty about the outcome of the Brexit negotiations. The market is on track to report new business growth of around 5% in 2018 as a whole, reaching a record annual total of £33 billion.”
| Sep 2018 |
% change on prev. year |
3 months to Sep 2018 |
% change on prev. year |
12 months to Sep 2018 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,747 |
0 |
8,007 |
+6 |
32,080 |
+3 |
| Total excluding high value (£m) |
2,534 |
-5 |
7,479 |
+4 |
30,136 |
+3 |
|
|
|
|
|
|
|
|
| Data Extracts: By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
524 |
+3 |
1,651 |
+5 |
6,523 |
+1 |
| Commercial vehicle finance (£m) |
698 |
-3 |
1,910 |
+7 |
7,694 |
+3 |
| IT equipment finance (£m) |
345 |
+60 |
820 |
+47 |
2,781 |
+24 |
| Business equipment finance (£m) |
206 |
-6 |
648 |
+4 |
2,557 |
+1 |
| Car finance (£m) |
687 |
-20 |
2,132 |
-8 |
9,041 |
-3 |
| Aircraft, ships and rolling stock finance (£m) |
11 |
-44 |
53 |
+56 |
248 |
-59 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,210 |
-2 |
3,712 |
+4 |
15,051 |
+1 |
| Broker-introduced finance (£m) |
517 |
+7 |
1,541 |
+16 |
5,898 |
+11 |
| Sales finance (£m) |
807 |
-15 |
2,226 |
-2 |
9,187 |
+1 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
440 |
+28 |
1,038 |
+12 |
3,972 |
+6 |
| Operating leasing (£m) |
483 |
-24 |
1,440 |
-9 |
6,071 |
-10 |
| Lease/Hire purchase (£m) |
1,490 |
+2 |
4,372 |
+7 |
17,585 |
+6 |
| Other finance (£m) |
233 |
0 |
838 |
+22 |
3,080 |
-3 |
Note to editors:
- Recent trends in new car registrations and the business new car finance market have been affected by changes to emission standards introduced in September 2018 to ensure compliance with the Worldwide Harmonised Light Vehicle Test Procedure (WLTP).
- 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 a third of UK investment in machinery, equipment and purchased software in the UK in 2017.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
