Total asset finance new business (primarily leasing and hire purchase) grew by 15% in March 2021 compared with the same month in 2020, according to figures released by the Finance & Leasing Association (FLA).
In Q1 2021, new business grew by 1% compared with Q1 2020.
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The commercial vehicle finance sector reported new business up in March by 22% compared with the same month in 2020.
The business equipment finance and plant and machinery finance sectors reported new business up by 14% and 13% respectively, over the same period.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “March saw the asset finance market report its highest monthly new business total since June 2019.
“A year on since the introduction of the first restrictions to deal with the pandemic, the market and wider economy continue to be impacted by ongoing restrictions. However, the latest set of figures show that the industry has adapted to meet the challenges posed by the crisis.”
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By GlobalDataMotor finance
The consumer car finance market reported growth in new business volumes of 10% in March 2021, compared with the same month in 2020, the FLA said.
In Q1 2021, new business volumes were 16% lower than in Q1 2020.
The consumer used car finance market reported new business volumes up by 24% in March compared with the same month in 2020, while the value of new business grew by 32%. In Q1 2021, new business volumes were 15% lower than in Q1 2020.
The consumer new car finance market reported a fall in new business volumes of 2% in March compared with the same month in 2020, while the value of new business grew by 9%.
In Q1 2021, new business volumes were 18% lower than in Q1 2020.
The percentage of private new car sales financed by FLA members in the twelve months to March 2021 increased to 93.2%.
Kilkelly said: “In March, the consumer car finance market reported growth for the first time in six months, with used car finance new business volumes growing at their fastest rate for seven years.”
UK asset finance market grew by 1% in February 2021
