Commercial vehicles lead the way as UK asset finance surges (despite technology slump)

UK Finance & Leasing Association (FLA) members report growth of 6% in asset finance new business during May 2014, compared with the same month last year.

In the same period, finance provided for commercial vehicles grew by 21%. Plant and machinery and business equipment was up by 8% and 4% respectively.

Commenting on the figures, Geraldine Kilkelly, FLA’s head of research and chief economist, said: “The asset finance market is continuing to grow across key sectors, reflecting the broader economic recovery and showing just how important this source of finance is in helping UK businesses invest for the future.”

Motor finance continues to grow

FLA members also report that consumer new car finance volumes grew by 8% in May.

Kilkelly explained: “The more modest growth reported by FLA members in recent months mirrors the level of private new car sales. The percentage of private new car sales financed by FLA members in the 12 months to May 2014 held steady at 75%.”

Consumer used car finance volumes increased by 10% compared with May last year, and remained 18% higher in the first five months of 2014 than in the same period in 2013.

She added: “It’s been a quieter couple of months in the motor finance market, but FLA members remain optimistic, and expect new business growth of more than 10% in the new and used car finance markets over the next twelve months.”

Cars bought on finance by consumers through dealerships