Equipment Finance News Plant & machinery and commercial vehicles lead new business recovery for UK asset lenders Published: 11th August 2014 Share UK Finance & Leasing Association (FLA) members reveal that new business in the asset finance market rose by 6% in June compared with the same month in 2013, and up by 10% in the first half of this year. Geraldine Kilkelly, head of research and chief economist at the FLA said: “The continuing broad-based recovery is evidenced by solid performances in plant and machinery and commercial vehicle finance, with growth of 19% and 18% in the first half of 2014. “The first six months of 2014 have seen sustained growth in asset finance which has helped support the recovery in key sectors of the economy. So far this year, more than 60% of asset finance new business went to support business investment by SMEs.” Jun 2014 % change on Jun 13 3 mths to Jun 14 % change on prev. year 12 mths to Jun 14 % change on prev. year Total FLA asset finance (£m) 2,162 +6 6,203 +7 23,478 +8 Total excluding high value (£m) 2,132 +13 6,064 +8 22,875 +9 Data Extracts: Plant and machinery finance (£m) 495 +16 1,359 +17 4,893 +14 Commercial vehicle finance (£m) 488 +5 1,448 +17 5,641 +19 IT equipment finance (£m) 188 -3 368 -24 1,458 -1 Business equipment finance (£m) 224 -1 564 -3 1,999 +4 Car finance (£m) 604 +6 1,881 +2 6,909 +3 Aircraft, ships and rolling stock finance (£m) 9 -60 61 -8 269 -43 At the same time FLA members report that consumer new car finance volumes grew by 9% in June, and by 15% in the first six months of 2014. The percentage of private new car sales financed by FLA members in the twelve months to June 2014 was 75.2%, up from 75.0% in May. In June, the consumer used car finance sector reported its best performance of the second quarter with new volumes up by 22% compared with the same month last year. Volumes in the first half of 2014 grew by 18%. Kilkelly said: “The first half of 2014 has seen strong performances in both the consumer new and used car finance sectors. The last six months have also seen the FLA’s penetration rate maintained at around three quarters of all private new car sales in the UK which shows how popular point-of-sale credit is with new car buyers.” Cars bought on finance by consumers through dealerships Jun-14 % change on prev. year 3 months to June 2014 % change on prev. year 12 months to June 2014 % change on prev. year New cars Value of advances (£m) 1,153 +14 3,331 +13 13,236 +22 Number of cars 72,726 +9 211,179 +7 858,334 +15 Used cars Value of advances (£m) 909 +28 2,710 +21 9,901 +26 Number of cars 90,367 +22 269,036 +14 999,948 +19 Cars bought on finance by businesses Jun-14 % change on prev. year 3 months to June 2014 % change on prev. year 12 months to June 2014 % change on prev. year New cars Number of cars 35,686 0 111,582 -2 418,445 +5 Used cars Number of cars 3,568 -26 11,155 -16 45,662 -29 Asset Finance Connect Asset Finance Connect brings you news and updates about UK and European auto, equipment and asset finance providers. Sign up to our newsletter Featured Stories NewsFoundation report reveals challenges in US construction industry NewsCHG-MERIDIAN establishes ISO-certified management systems throughout Europe NewsLondon electric taxi firm secures £1.6m to drive further growth Equipment Finance
