Market Data

Asset finance new business grew by 11% in October 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 October 2023 by 11% compared with the same month in 2022. In the ten months to October 2023, new business was 14% higher than in the same period in 2022.

The business new car finance and commercial vehicle finance sectors reported new business up in October by 53% and 8% respectively, compared with the same month in 2022. The plant and machinery finance sector reported a fall in new business of 17% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market returned to double-digit new business growth in October with further strong performances from the vehicle finance sectors. New asset finance lending to SMEs grew by 6% compared with the same month in 2022, while to larger businesses it increased by 15%.

“2023 is set to be a record year for the asset finance industry as new business is expected to reach more than £38 billion. The industry directly supports the real economy by providing finance to businesses of all sizes which funds as much as 40% of UK investment in machinery, equipment and vehicles.

“Asset finance is playing a vital role in funding the investment needed to raise productivity while helping the UK transition to net zero which will ultimately raise economic growth and household living standards.

  Oct 23

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Total FLA asset finance (£m) 3,303  11 9,673 12 37,942 14
Total excluding high value (£m)  3,159  10 9,293 12 36,293 17
Data Extracts:
By asset:
Plant and machinery finance (£m) 568  -17 1,702 -16 7,660 -3
Commercial vehicle finance (£m)  864  8 2,493 11 9,900 13
IT equipment finance (£m)  73  -6 287 -27 1,249 -17
Business equipment finance (£m)  161  0 489 -2 1,918 -4
Car finance (£m)  1,229  38 3,529 44 12,821 41
Aircraft, ships and rolling stock finance (£m)  18  54 84 20 345 8
By channel:
Direct finance (£m) 1,500  10 4,323 17 16,695 25
Broker-introduced finance (£m)  698  1 2,030 -2 8,304 11
Sales finance (£m)  962  15 2,941 15 11,294 10
By product:
Finance leasing (£m)  300  -1 897 0 3,503 6
Operating leasing (£m)  768  31 2,360 43 8,784 47
Lease/Hire purchase (£m)  1,744  3 5,015 2 20,397 7
Other finance (£m)  353  11 1,044 14 3,968 8