Finance & Leasing Association14 June 2023
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in April 2023 by 12% compared with the same month in 2022. In the first four months of 2023, new business was 13% higher than in the same period in 2022.
The business new car finance and business equipment finance sectors reported new business up in April by 48% and 13% respectively, compared with the same month in 2022. The commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 2% and 6% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The asset finance market reported a year of sustained monthly new business growth in April supported by continued strong growth in the business new car finance sector. Annual new business in April at £35.3 billion was only 1% lower than the pre-pandemic peak in 2019.
“Asset finance supports business investment across all major industry sectors and business size. New business provided to larger businesses grew by 27% in April, to the manufacturing sector increased by 30%, and to the services sector grew by 11%, compared with April 2022.”
| Apr 2023 |
% change on prev. year |
3 months to Apr 2023 |
% change on prev. year |
12 months to Apr 2023 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,842 |
12 |
9,666 |
15 |
35,282 |
11 |
| Total excluding high value (£m) |
2,674 |
9 |
9,121 |
19 |
33,600 |
14 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
604 |
-6 |
2,188 |
11 |
8,016 |
8 |
| Commercial vehicle finance (£m) |
674 |
-2 |
2,506 |
15 |
9,189 |
9 |
| IT equipment finance (£m) |
79 |
-20 |
320 |
-39 |
1,367 |
-17 |
| Business equipment finance (£m) |
141 |
13 |
485 |
-5 |
1,929 |
-1 |
| Car finance (£m) |
945 |
34 |
3,072 |
37 |
10,743 |
25 |
| Aircraft, ships and rolling stock finance (£m) |
29 |
18 |
76 |
1 |
310 |
-11 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,209 |
15 |
4,068 |
28 |
15,103 |
21 |
| Broker-introduced finance (£m) |
628 |
9 |
2,145 |
16 |
7,877 |
15 |
| Sales finance (£m) |
837 |
3 |
2,909 |
10 |
10,620 |
3 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
231 |
-10 |
832 |
-4 |
3,407 |
7 |
| Operating leasing (£m) |
609 |
34 |
2,116 |
46 |
7,206 |
19 |
| Lease/Hire purchase (£m) |
1,535 |
3 |
5,354 |
11 |
19,709 |
11 |
| Other finance (£m) |
334 |
33 |
998 |
3 |
3,704 |
3 |
Note to editors:
- In 2022, FLA members provided £150 billion of new finance to UK businesses and households. £34 billion of finance was provided to businesses and the public sector. FLA members financed almost a third of UK investment in machinery, equipment and purchased software in the UK in 2022.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
