Total asset finance new business (primarily leasing and hire purchase) grew in September 2024 by 3% compared with the same month in 2023. In the first nine months of 2024, new business was 4% higher than in the same period in 2023, according to new figures by the Finance & Leasing Association (FLA).
New business in the commercial vehicle finance and plant and machinery finance sectors grew in September by 15% and 4% respectively, compared with the same month in 2023. The business new car finance sector reported a fall in new lending of 6% over the same period.
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Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market ended the third quarter on a positive note which contributed to new business growth of 1% in Q3 2024 as a whole. The strong performance of the commercial vehicle finance sector reflected growth in new registrations. The overall improvement in the plant and machinery finance sector was supported by higher levels of new business in the agricultural and construction equipment finance sectors, which grew by 5% in the third quarter.
“The asset finance industry is a vital part of the UK economy funding as much as 40% of UK investment in vehicles, machinery and equipment through leasing and hire purchase. In the twelve months to September 2024, more than £23.5 billion of new lending was provided to SMEs to support capital investment, with a further £14.3 billion provided to larger businesses.
“The Autumn 2024 Budget saw the Government maintain the full expensing regime with a commitment to exploring its extension to include the leasing and hire of assets. This will be an important next step as the asset finance industry is playing an increasingly important role in helping UK businesses to move to a more sustainable future.”
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