Total asset finance new business (primarily leasing and hire purchase) in May 2025 was at a similar level to the same month in 2024, according to new figures released by the Finance & Leasing Association (FLA).

In the first five months of 2025, new business was 1% higher than in the same period in 2024.

The business new car finance and business equipment finance sectors reported new business up in May by 4% and 6% respectively, compared with the same month in 2024. The commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 4% and 7% respectively, over the same period.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The performance of the asset finance market in April and May reflected a more subdued economic picture in the second quarter of 2025 following a strong first quarter rebound.

“The asset finance market so far this year has reported growth in the value of new business provided to the major industry sectors – services, agriculture, and manufacturing – while holding steady in the construction sector.

“Our latest research suggests the asset finance industry will report single-digit new business growth by value in 2025 as a whole, as businesses look to invest in more efficient technology and greener vehicles, machinery and equipment in a lower interest rate environment.”