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Market Data Sponsored by Market Data Asset finance new business fell by 7% in August Published: 9th October 2024 Share New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) fell in August 2024 by 7% compared with the same month in 2023. In the eight months to August 2024, new business was 4% higher than in the same period in 2023. New business in the commercial vehicle finance and IT equipment finance sectors increased in August by 5% and 9% respectively, compared with the same month in 2023. The business new car finance sector reported a fall in new business of 23% over the same period. Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “A slowdown in fleet new car sales fed through to a weaker performance by the business new car finance sector in August. Demand for plant and machinery and business equipment finance remained subdued which reflected weak business investment in these assets. “The FLA’s Q3 2024 Industry Outlook Survey suggested that asset finance providers are cautiously optimistic about the outlook as a lower interest rate environment should provide a boost to investment intentions. More than three-quarters of asset finance respondents to the Q3 Survey expected some increase in business investment over the next twelve months, while 89% anticipated some increase in new business. “In Q2 2024, FLA members financed 34% of UK investment in vehicles, machinery and equipment and the industry will play a vital role in supporting the Government’s drive to increase business investment levels. With the Budget fast approaching, we urge the Government to ensure that leasing is included in the full expensing regime.” Aug 2024% change on prev. year3 months to Aug 2024% change on prev. year12 months to Aug 2024% change on prev. yearTotal FLA asset finance (£m)2,806-79,476-239,5045Total excluding high value (£m)2,710-78,982-437,5204 Data extracts: By asset: Plant and machinery finance (£m)581-21,91007,441-9Commercial vehicle finance (£m)80352,576010,5567IT equipment finance (£m)1169306-41,228-9Business equipment finance (£m)145-8438-111,757-9Car finance (£m)829-193,048-713,57513Aircraft, ships and rolling stock finance (£m)18-6382-29317-9By channel: Direct finance (£m)1,165-153,919-1016,9654Broker-introduced finance (£m)68872,15948,5242Sales finance (£m)858-32,904-112,0317By product: Finance leasing (£m)270-9828-123,343-6Operating leasing (£m)724-62,429210,01517Lease/Hire purchase (£m)1,420-54,885-320,5201Other finance (£m)298-18977-44,2356 Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Market DataUK inflation hits 2.3% in October as energy costs surge Market DataUK corporate insolvencies drop 10% in October 2024 Market DataTransition risk losses alone unlikely to threaten EU financial stability