Market Data

Asset finance new business grew by 14% in March 2023

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New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in March 2023 by 14% compared with the same month in 2022. In Q1 2023, new business was also 14% higher than in Q1 2022.

The business new car and commercial vehicle finance sectors reported new business up in March by 54% and 23% respectively, compared with the same month in 2022. The plant and machinery finance sector reported new business growth of 20% 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 record level of monthly new business in March of more than £4 billion. Inflationary pressures have contributed to higher average advances across asset finance sectors, but volumes have also either grown or been maintained.

“Our latest figures show the vital support the asset finance industry is providing for business investment across the UK economy. New asset finance lending to SMEs remained robust, growing by 22% compared with March 2022. New lending to all major industry sectors – manufacturing, construction, agriculture, and services – also increased in March.”

  March 2023

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March 2023

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March 2023

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Total FLA asset finance (£m) 

4,216  14 9,458 14 34,979 8
Total excluding high value (£m)  4,018  27 8,967 21 33,370 11
Data Extracts:
By asset:
Plant and machinery finance (£m)  931  20 2,089 13 8,052 8
Commercial vehicle finance (£m)  1,098  23 2,517 19 9,200 9
IT equipment finance (£m)  143  -58 322 -37 1,387 -18
Business equipment finance (£m)  200  -14 469 -7 1,913 -3
Car finance (£m)  1,412  46 3,026 39 10,502 20

Aircraft, ships and rolling stock finance (£m) 

37  47 86 -38 306 -23
By channel:
Direct finance (£m)  1,761  40 4,107 33  14,950 17 
Broker-introduced finance (£m)  912  22  2,085  19  7,825  14 
Sales finance (£m)  1,345  17  2,775  10,595 
By product:
Finance leasing (£m)  359  -8  846  3,433 
Operating leasing (£m)  952  56  2,110  51 7,052  15 
Lease/Hire purchase (£m)  2,384 15  5,235  12  19,662  10 
Other finance (£m)  376  -19  967  -12  3,620  -3