New figures from the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) fell by 5% in March, compared with the same month last year, and by 3% in Q1 2018 overall.
New finance for business equipment grew in March by 13% compared with the same month in 2017.
Over the same period, the plant and machinery finance and commercial vehicle finance sectors reported falls in new business of 9% and 2% respectively.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market recorded its third highest monthly new business total in March at more than £3.3 billion.
“However, the latest figures reflect some of the recent slowdown in the UK economy, with new finance for agricultural and construction equipment 1% and 8% lower in March than in the same month in 2017.”
Mar 2018 | % change on prev. year | 3 months to Mar 2018 | % change on prev. year | 12 months to Mar 2018 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,325 | -5 | 7,668 | -3 | 31,459 | +3 |
| Total excluding high value (£m) | 3,229 | -3 | 7,316 | -1 | 29,782 | +3 |
| Data Extracts:
By asset: | ||||||
| Plant and machinery finance (£m) | 654 | -9 | 1,652 | -1 | 6,561 | +7 |
| Commercial vehicle finance (£m) | 849 | -2 | 1,813 | -4 | 7,412 | -1 |
| IT equipment finance (£m) | 196 | -24 | 497 | -3 | 2,318 | +2 |
| Business equipment finance (£m) | 259 | +13 | 622 | +1 | 2,586 | +5 |
| Car finance (£m) | 1,041 | -7 | 2,200 | -3 | 9,357 | +2 |
| Aircraft, ships and rolling stock finance (£m) | 33 | -39 | 66 | -61 | 448 | -18 |
| By channel: | ||||||
| Direct finance (£m) | 1,652 | +1 | 3,693 | -1 | 14,940 | +1 |
| Broker-introduced finance (£m) | 579 | -4 | 1,451 | +4 | 5,720 | +8 |
| Sales finance (£m) | 998 | -10 | 2,172 | -2 | 9,122 | +4 |
| By product: | ||||||
| Finance leasing (£m) | 406 | -1 | 914 | +4 | 3,843 | +5 |
| Operating leasing (£m) | 714 | -13 | 1,531 | -11 | 6,534 | -3 |
| Lease/Hire purchase (£m) | 1,835 | +1 | 4,151 | 0 | 16,865 | +4 |
| Other finance (£m) | 304 | -19 | 824 | -14 | 3,150 | -6 |
