Total asset finance new business (primarily leasing and hire purchase) fell in November 2024 by 4% compared with the same month in 2023, according to new figures released by the Finance & Leasing Association (FLA).
In the eleven months to November 2024, new business was 3% higher than in the same period in 2023.
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The commercial vehicle finance sector reported new business up in November by 11% compared with the same month in 2023. The business new car finance and plant and machinery sectors reported falls in new business of 9% and 3% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market reported a modest fall in new business in November as new lending to SMEs and larger companies fell by 4% and 5% respectively. Of the main asset sectors, only the commercial vehicle finance sector reported new business growth.
“We expect FLA asset finance providers to report a record level of new business in 2024 as a whole of around £39.7 billion.
"The outlook for 2025 remains challenging. Despite the lower inflation and interest rate environment, uncertainty about demand and pressure on net margins have hit business confidence and investment intentions.
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By GlobalData"Nevertheless, FLA’s latest industry outlook survey suggested that almost two-thirds of asset finance respondents expected some increase in new business over the next year.”
