Car finance saw a decrease of 8% in June to £1.13bn. Credit: Art Genie / Shutterstock.

New data revealed by the Finance & Leasing Association (FLA) revealed that total asset finance new business amounted to £3.276bn in June 2024, showing a 7% decrease compared to the same period last year.

However, the three-month period leading up to June saw a 9% increase from the same period in 2023, reaching £10.45bn.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Excluding high-value asset finance, the June 2024 total was £3.07bn, a 10% decrease year-over-year (YoY) while the three-month total to June was £9.79bn, a 7% increase.

Plant and machinery finance experienced a 12% decrease in June to £615m, with no change over the three months at £1.99bn. In addition, commercial vehicle finance was recorded at £837m, down by 12%, but rose by 13% to £2.75bn over the three months to June.

Direct finance decreased by 15% in June to £1.33bn but grew by 5% to £4.35bn over the three months. Meanwhile, finance leasing dropped by 11% but increased by 1% to £812m over the three-month period.

Operating leasing totalled £854m in June, a 1% increase, with a 21% rise to £2.65bn over the three months. During June, lease/hire purchase finance saw a 12% decrease but increased by 4% to £5.43bn over the three months.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Commenting on the figures, FLA director of research and chief economist Geraldine Kilkelly said: “Several factors contributed to the reduction in asset finance new business in June, including companies delaying investment plans until after the General Election and in anticipation of a cut in Bank Rate, as well as slightly fewer working days this June than in the same month in 2023.

“The asset finance market reported new business growth of 9% in Q2 2024 as a whole, and a higher level of new business in the first half of the year, which was supported by continued growth in the vehicle finance sectors, offset in part by lower levels of new business in the machinery and equipment finance sectors.

“Encouraging more private sector investment will be crucial to delivering higher economic growth. The asset finance industry plays a key role in helping businesses of all sizes to fund this investment with FLA members financing as much as 40% of all UK investment in vehicles machinery and equipment.”