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 |