Asset finance new business grew by 12% in November 2023
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in November 2023 by 12% compared with the same month in 2022. In the eleven months to November 2023, new business was 13% higher than in the same period in 2022.
The business new car finance and commercial vehicle finance sectors reported new business up in November by 37% and 1% respectively, compared with the same month in 2022. The plant and machinery finance sector reported a fall in new business of 8% over the same period.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The asset finance market maintained strong new business growth in November boosted by another robust performance by the business new car finance sector. New asset finance lending to SMEs grew by 5% compared with November 2022, and to larger businesses grew by 24%.
“The performance in November means the market is on track to report a record annual level of new business in 2023. The FLA’s Q4 2023 Industry Outlook Survey shows that asset finance respondents remain cautiously optimistic about growth prospects in 2024, with 77% expecting some increase in new business over the next twelve months.
“The Industry will play a pivotal role in supporting the business investment needed to drive forward the transition to net zero and improve the UK’s productivity. We therefore urge the government to extend the full expensing regime to include leasing in the Spring Budget.”
Nov 2023 | % change on prev. year | 3 months to Nov 2023 | % change on prev. year | 12 months to Nov 2023 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,231 | 12 | 9,910 | 9 | 38,287 | 14 |
| Total excluding high value (£m) | 3,061 | 10 | 9,447 | 8 | 36,546 | 16 |
| Data Extracts:
By asset: | ||||||
| Plant and machinery finance (£m) | 562 | -8 | 1,688 | -16 | 7,611 | -4 |
| Commercial vehicle finance (£m) | 845 | 1 | 2,575 | 7 | 9,911 | 12 |
| IT equipment finance (£m) | 95 | -5 | 278 | -26 | 1,247 | -19 |
| Business equipment finance (£m) | 170 | 7 | 480 | -5 | 1,908 | -5 |
| Car finance (£m) | 1,182 | 33 | 3,686 | 36 | 13,112 | 41 |
| Aircraft, ships and rolling stock finance (£m) | 25 | -20 | 62 | -15 | 339 | -1 |
| By channel: | ||||||
| Direct finance (£m) | 1,432 | 17 | 4,381 | 14 | 16,906 | 24 |
| Broker-introduced finance (£m) | 690 | 3 | 2,077 | -2 | 8,321 | 9 |
| Sales finance (£m) | 940 | 5 | 2,989 | 10 | 11,320 | 10 |
| By product: | ||||||
| Finance leasing (£m) | 282 | 1 | 903 | -2 | 3,527 | 5 |
| Operating leasing (£m) | 840 | 35 | 2,450 | 33 | 9,003 | 47 |
| Lease/Hire purchase (£m) | 1,677 | 3 | 5,205 | 3 | 20,452 | 7 |
| Other finance (£m) | 315 | 11 | 977 | 1 | 3,977 | 6 |
