New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 7% in April, compared with the same month in 2018.

New business in the plant and machinery finance and business equipment finance sectors was up by 8% and 9% respectively, while commercial vehicle finance new business increased by 23% over the same period.

Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The asset finance market has made a great start to the second quarter of 2019, recording its seventh consecutive month of new business growth in April.”

“Growth in new finance for commercial vehicles has been particularly robust in recent months, which may in part reflect the bringing forward of investment ahead of the introduction of EU regulation that requires new CVs to have smart tachographs from June 2019.”

Apr 2019

% change on prev. year

3 months to Apr

2019

% change on prev. year

12 months to Apr

2019

% change on prev. year

Total FLA asset finance (£m)

2,938

+7

8,971

+11

33,904

+7

Total excluding high value (£m)

2,816

+10

8,418

+9

31,586

+5

Data Extracts:

By asset:

Plant and machinery finance (£m)

603

8

1,852

7

7,213

9

Commercial vehicle finance (£m)

827

23

2,511

23

8,774

14

IT equipment finance (£m)

184

16

585

7

2,833

16

Business equipment finance (£m)

225

9

665

6

2,691

4

Car finance (£m)

889

2

2,430

1

8,897

-3

Aircraft, ships and rolling stock finance (£m)

15

0

143

174

384

34

By channel:

Direct finance (£m)

1,476

16

4,263

10

15,951

5

Broker-introduced finance (£m)

561

10

1,735

17

6,411

15

Sales finance (£m)

779

0

2,421

3

9,224

0

By product:

Finance leasing (£m)

370

16

1,152

16

4,289

11

Operating leasing (£m)

551

13

1,619

0

6,109

-7

Lease/Hire purchase (£m)

1,748

9

5,104

11

19,001

11

Other finance (£m)

205

11

797

29

3,252

9