Asset Finance new business up by 10% in February 2024

New figures released on the 9th April 2024 by the Finance and Leasing Association (FLA) show that total asset finance (primarily hire purchase and leasing) grew by 10% in February 2024 in comparison to the same month in 2023. The first two months of 2024 showed that new business was 9% higher than in the same period in 2023.

The business commercial vehicle and new car finance sectors reported that new business in February was up by 7% and 40% respectively, compared with the same month in the previous year.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA commented;

“Growth in the asset finance market since April of last year has been predominantly supported by higher levels of new business in the new car finance and commercial vehicle sectors.”

“Lending to SMEs by FLA asset finance providers grew by 4% in February, reaching £23.6 billion in the twelve months to February 2024. The latest SME Finance Monitor suggests that asset finance is currently used by a third of SMEs with 10-49 employees and almost a quarter of SMEs with 50-249 employees.”

“The asset finance market is expected to continue to grow in the near term supported by further growth in the vehicle finance sectors. More broadly, investment intentions remain subdued as a result of continued uncertainty about demand and pressure on net margins.”


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