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Equipment Finance News Asset finance new business down 6% in quieter September Published: 9th November 2017 Share Asset finance new business (primarily leasing and hire purchase) in the UK fell by 6% in September, compared with the same month last year, according to new figures released by the Finance & Leasing Association (FLA). For the whole of Q3 2017, new business fell by 2% compared with the same quarter in 2016. While new finance for business equipment grew in September by 4% compared with the same month in 2016, there were falls for new finance for plant and machinery (-8%), car finance (-8%) and IT equipment finance (-4%). Commercial vehicle finance rose 1%. However, despite the falls, new business for the 12 months to September is still up 6% year-on-year, excluding high value, driven by strong performances earlier in the period. Geraldine Kilkelly, head of research and chief economist at the FLA, said: “September was a quieter month for the business car and plant and machinery finance sectors. “Nevertheless, the asset finance market has returned a strong performance so far in 2017, with new business overall 6% higher than in the previous year. Over the same period, UK business investment is forecast to have grown by only 2.3%.” FLA calculations show that the industry financed more than 35% of UK investment in machinery, equipment and purchased software in the 12 months to June 2017 – an eight-year high. Asset finance new business Sep 17 % change on prev yr 3 mths to Sep 17 % change on prev yr 12 mths to Sep 17 % change on prev yr Total FLA asset finance (£m) 2,750 -6 7,574 -2 31,611 +5 Total excluding high value (£m) 2,740 -2 7,381 +3 30,579 +6 By asset: Plant and machinery finance (£m) 494 -8 1,537 +5 6,505 +12 Commercial vehicle finance (£m) 711 +1 1,764 -2 7,488 +2 IT equipment finance (£m) 212 -4 549 -5 2,214 -3 Business equipment finance (£m) 219 +4 632 +8 2,567 +12 Car finance (£m) 888 -8 2,396 +2 9,763 +5 Aircraft, ships and rolling stock finance (£m) 20 +24 34 -77 615 +20 By channel: Direct finance (£m) 1,283 -5 3,711 0 15,506 +4 Broker-introduced finance (£m) 520 -4 1,423 +3 5,723 +12 Sales finance (£m) 937 +3 2,248 +6 9,350 +6 By product: Finance leasing (£m) 344 -3 941 0 4,000 -3 Operating leasing (£m) 655 -6 1,658 0 7,063 +6 Lease/Hire purchase (£m) 1,434 -2 4,045 +3 16,589 +9 Other finance (£m) 316 -24 930 -21 3,959 -4 Asset Finance Connect Asset Finance Connect brings you news and updates about UK and European auto, equipment and asset finance providers. Sign up to our newsletter Featured Stories NewsUS equipment finance confidence hits three-year high NewsAlba Leasing and Banca Sistema announce partnership NewsDLL and Kempower partner to drive EV charging accessibility Equipment Finance
