FLA figures show asset finance new business at six year high

Asset finance new business hit a six year high in September, growing by 31% to reach over £2.5 billion, according to new figures from the Finance & Leasing Association (FLA).

Geraldine Kilkelly, the FLA’s head of research and chief economist, said: ‘September saw robust growth across all the key asset finance sectors. New business in the third quarter of this year increased by 21%, three times the rate of growth recorded in the second quarter.’

Business equipment finance reported its strongest growth so far this year, with new business up 53% in September compared with the same month in the previous year. Business new car finance grew by 30 % in the same period. Plant and machinery finance (22%), commercial vehicle finance (16%) and IT equipment finance (15%) also performed well, but aircraft, ships and rolling stock finance posted a 25% decline in new business finance compared to the previous September.

Separately, FLA data reveals a 12% growth in consumer new car finance this month compared with September 2013 – the best September performance since the introduction of the twice-yearly release of new registration plates in 2001.

The percentage of private new car sales financed by FLA members in the twelve months to September 2014 increased to 75.8%, a record high.

The consumer used car finance market also saw growth in September, compared with the same month last year, with volumes up by 15% and a 23% hike in the value of advances to reach £959m.

Paul Harrison, head of motor finance at the FLA, said: ‘Motor finance is a very competitive market, driven by savvy consumers shopping around to compare deals before visiting their local dealership. Competition keeps prices keen and customer service high.’

The FLA figures show that new car finance for businesses also performed strongly in September, up by 28% compared with September 2013.

Cars bought on finance by consumers through dealerships

Cars bought on finance by businesses