Asset finance new business fell by 7% in June

New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) fell in June 2024 by 7% compared with the same month in 2023. In the first half of 2024, new business was 5% higher than in the same period in 2023.

The business new car finance and commercial vehicle finance sectors reported falls in new business in June of 11% and 12% respectively, compared with the same month in 2023. New business in the plant and machinery finance and business equipment finance sectors fell by 12% and 23% respectively.

“Several factors contributed to the reduction in asset finance new business in June including companies delaying investment plans until after the General Election and in anticipation of a cut in Bank Rate, as well as slightly fewer working days this June than in the same month in 2023.

“The asset finance market reported new business growth of 9% in Q2 2024 as a whole, and a higher level of new business in the first half of the year, which was supported by continued growth in the vehicle finance sectors, offset in part by lower levels of new business in the machinery and equipment finance sectors.

“Encouraging more private sector investment will be crucial to delivering higher economic growth. The asset finance industry plays a key role in helping businesses of all sizes to fund this investment with FLA members financing as much as 40% of all UK investment in vehicles machinery and equipment.”

	Jun  2024	% change on prev. year	3 months to Jun 2024	% change on prev. year	12 months to Jun 2024	% change on prev. year
Total FLA asset finance (£m)	3,276	-7	10,456	9	39,437	7
Total excluding high value (£m)	3,076	-10	9,792	7	37,532	7
Data extracts: By asset:
Plant and machinery finance (£m)	615	-12	1,994	0	7,364	-11
Commercial vehicle finance (£m)	837	-12	2,757	13	10,343	8
IT equipment finance (£m)	110	8	354	42	1,248	-6
Business equipment finance (£m)	136	-23	413	-11	1,772	-7
Car finance (£m)	1,130	-8	3,506	9	13,789	20
Aircraft, ships and rolling stock finance (£m)	43	-5	114	23	348	8
By channel:
Direct finance (£m)	1,337	-15	4,353	5	17,144	9
Broker-introduced finance (£m)	726	-3	2,282	9	8,420	2
Sales finance (£m)	1,008	-8	3,157	10	11,963	8
By product:
Finance leasing (£m)	306	-11	812	1	3,413	-1
Operating leasing (£m)	854	1	2,657	21	9,981	25
Lease/Hire purchase (£m)	1,694	-12	5,436	4	20,431	1
Other finance (£m)	266	-10	1,160	20	4,246	13