Asset Finance Market Data

UK asset finance up 31% in April ‘24

Kilkelly geraldine 400
Geraldine KilkellyDirector of Research and Chief Economist, Finance & Leasing Association

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. year3 months to Apr 2024% change on prev. year12 months to Apr 2024% change on prev. year
Total FLA asset finance (£m)3,7823110,542739,43110
Total excluding high value (£m)3,470279,992837,60210
Data Extracts:   By asset:      
Plant and machinery finance (£m)69792,025-127,419-11
Commercial vehicle finance (£m)997452,9161410,33811
IT equipment finance (£m)10533296-71,178-14
Business equipment finance (£m)1494441-101,829-6
Car finance (£m)1,247313,5581513,80628
Aircraft, ships and rolling stock finance (£m)53821134835113
  By channel:      
Direct finance (£m)1,615324,5251017,33214
Broker-introduced finance (£m)752162,24628,3473
Sales finance (£m)1,103293,221811,92410
  By product:      
Finance leasing (£m)2445787-63,4150
Operating leasing (£m)895432,558189,79933
Lease/Hire purchase (£m)1,981275,700520,6223
Other finance (£m)569681,169164,28415