Asset finance new business grew by 12% in April 2023

New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in April 2023 by 12% compared with the same month in 2022. In the first four months of 2023, new business was 13% higher than in the same period in 2022.

The business new car finance and business equipment finance sectors reported new business up in April by 48% and 13% respectively, compared with the same month in 2022. The commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 2% and 6% respectively, over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market reported a year of sustained monthly new business growth in April supported by continued strong growth in the business new car finance sector. Annual new business in April at £35.3 billion was only 1% lower than the pre-pandemic peak in 2019.

“Asset finance supports business investment across all major industry sectors and business size. New business provided to larger businesses grew by 27% in April, to the manufacturing sector increased by 30%, and to the services sector grew by 11%, compared with April 2022.”

	April 2023	% change on prev yr	3 mths to April 2023	% change on prev yr	12 mths to April 2023	% change on prev yr
Total FLA asset finance (£m)	2,842	12	9,666	15	35,282	11
Total excluding high value (£m)	2,674	9	9,121	19	33,600	14
Data Extracts:
By asset:
Plant and machinery finance (£m)	604	-6	2,188	11	8,016	8
Commercial vehicle finance (£m)	674	-2	2,506	15	9,189	9
IT equipment finance (£m)	79	-20	320	-39	1,367	-17
Business equipment finance (£m)	141	13	485	-5	1,929	-1
Car finance (£m)	945	34	3,072	37	10,743	25
Aircraft, ships and rolling stock finance (£m)	29	18	76	1	310	-1
By channel:
Direct finance (£m)	1.209	15	4,068	28	15,103	21
Broker-introduced finance (£m)	628	9	2,145	16	7,877	15
Sales finance (£m)	837	3	2,909	10	10,620	3
By product:
Finance leasing (£m)	231	-10	832	-4	3,407	7
Operating leasing (£m)	609	34	2,116	46	7,206	19
Lease/Hire purchase (£m)	1,535	3	5,354	11	19,709	11
Other finance (£m)	334	33	998	3	3,704	3