Asset finance new business grew by 31% in April 2024

6 June 2024

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 2024 by 31% compared with the same month in 2023.  In the first four months of 2024, new business was 7% higher than in the same period in 2023. 

The business new car finance and commercial vehicle finance sectors reported new business up in April by 35% and 45% respectively, compared with the same month in 2023.  New business in the plant and machinery finance and business equipment finance sectors increased by 9% and 4% respectively, over the same period. 

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

“The strong performance by the asset finance market in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter. The vehicle finance sectors have continued to drive growth this year with new business up by 15% in the first four months of 2024.  By contrast, the machinery and equipment finance sectors reported new business 9% lower over the same period.

 “Key to any new Government initiatives to boost long-term economic growth will be increasing business investment.  The asset finance industry which has funded as much as 40% of UK investment in machinery, equipment and vehicles will play a pivotal role in supporting the drive among businesses of all sizes to achieve growth and higher productivity sustainably.” 

 

Apr

 2024

% change on prev. year

3 months to

Apr

2024

% change on prev. year

12 months to

Apr 2024

% change on prev. year

Total FLA asset finance (£m)

3,782

31

10,542

7

39,431

10

Total excluding high value (£m)

3,470

27

9,992

8

37,602

10

 

 

 

 

 

 

 

Data Extracts:

 

By asset:

 

 

 

 

 

 

Plant and machinery finance (£m)

697

9

2,025

-12

7,419

-11

Commercial vehicle finance (£m)

997

45

2,916

14

10,338

11

IT equipment finance (£m)

105

33

296

-7

1,178

-14

Business equipment finance (£m)

149

4

441

-10

1,829

-6

Car finance (£m)

1,247

31

3,558

15

13,806

28

Aircraft, ships and rolling stock finance (£m)

53

82

113

48

351

13

 

By channel:

 

 

 

 

 

 

Direct finance (£m)

1,615

32

4,525

10

17,332

14

Broker-introduced finance (£m)

752

16

2,246

2

8,347

3

Sales finance (£m)

1,103

29

3,221

8

11,924

10

 

By product:

 

 

 

 

 

 

Finance leasing (£m)

244

5

787

-6

3,415

0

Operating leasing (£m)

895

43

2,558

18

9,799

33

Lease/Hire purchase (£m)

1,981

27

5,700

5

20,622

3

Other finance (£m)

569

68

1,169

16

4,284

15

 Note to editors: 

  1. In 2023, FLA members provided £151 billion of new finance to UK businesses and households.  £39 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 2023.
  2. For media enquiries, please contact the FLA press office on 020 7420 9656.

 

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