UK asset finance up 31% in April ‘24

New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in April 2024 by 31% compared with the same month in 2023.  In the first four months of 2024, new business was 7% higher than in the same period in 2023.

The business new car finance and commercial vehicle finance sectors reported new business up in April by 35% and 45% respectively, compared with the same month in 2023.  New business in the plant and machinery finance and business equipment finance sectors increased by 9% and 4% respectively, over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The strong performance by the asset finance market in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter. The vehicle finance sectors have continued to drive growth this year with new business up by 15% in the first four months of 2024.  By contrast, the machinery and equipment finance sectors reported new business 9% lower over the same period.

“Key to any new Government initiatives to boost long-term economic growth will be increasing business investment.  The asset finance industry which has funded as much as 40% of UK investment in machinery, equipment and vehicles will play a pivotal role in supporting the drive among businesses of all sizes to achieve growth and higher productivity sustainably.”

	Apr  2024	% change on prev. year	3 months to Apr 2024	% change on prev. year	12 months to Apr 2024	% change on prev. year
Total FLA asset finance (£m)	3,782	31	10,542	7	39,431	10
Total excluding high value (£m)	3,470	27	9,992	8	37,602	10
Data Extracts:   By asset:
Plant and machinery finance (£m)	697	9	2,025	-12	7,419	-11
Commercial vehicle finance (£m)	997	45	2,916	14	10,338	11
IT equipment finance (£m)	105	33	296	-7	1,178	-14
Business equipment finance (£m)	149	4	441	-10	1,829	-6
Car finance (£m)	1,247	31	3,558	15	13,806	28
Aircraft, ships and rolling stock finance (£m)	53	82	113	48	351	13
By channel:
Direct finance (£m)	1,615	32	4,525	10	17,332	14
Broker-introduced finance (£m)	752	16	2,246	2	8,347	3
Sales finance (£m)	1,103	29	3,221	8	11,924	10
By product:
Finance leasing (£m)	244	5	787	-6	3,415	0
Operating leasing (£m)	895	43	2,558	18	9,799	33
Lease/Hire purchase (£m)	1,981	27	5,700	5	20,622	3
Other finance (£m)	569	68	1,169	16	4,284	15