Data released by the Finance & Leasing Association (FLA) indicates an 11% year-on-year (YoY) increase in new asset finance business in September 2025, with total volumes reaching £3.88bn.

Over the first nine months of the year, new business activity reported a 2% rise compared to the same timeframe in 2024.

Sector breakdowns show that new car finance stood at £1.35bn in September—up 13% from the same month of the previous year. Meanwhile for the three months up to September (Q3), the figure was £3.3bn with 8% YoY increase.

Plant and machinery finance also increased by 11% in September this year to £680m and 4% YoY in Q3 2025 to £1.9bn. Commercial vehicle finance declined by 2% to £1bn in September and 6% in Q3 to £10.8bn.  

IT equipment finance reached £125m in September, an increase of 18% from September 2024, and totalled £335m in Q3, increasing by 11% from Q3 2024.  

Additionally, business equipment finance was up by 22% and 5% to £169m and £467 in September and Q3 2025, respectively.  

SME lending in September saw a 14% rise in new business volumes, while lending to larger businesses increased by 9%.    

By channel performance figures reveal a 16% increase in direct finance, a 14% rise for broker-introduced finance, and a 6% uplift for sales finance in September 2025 compared with the same month in 2024.

In Q3 2025, direct finance and broker-introduced finance grew by 6% while sales finance saw a 1% increase.

In terms of product categories, operating leasing category expanded by 16%, lease/hire purchase activity grew by 8%, and other forms of finance registered a 30% increase in September 2025 as against the same month last year.

For Q3 2025, operating leasing category increased 6%, lease/hire purchase saw slight growth of 1%, and other finances grew 16%.

In contrast, finance leasing fell by 5% in September and 3% in Q3 2025. 

Commenting on the figures, FLA chief economist and research director Geraldine Kilkelly said: “The asset finance market reported a strong end to the third quarter of 2025 as monthly new business reached its second highest total so far this year.  It was particularly encouraging to see broad-based growth across asset sectors.

“The industry supported businesses across all sectors of the economy in September, with new finance provide to firms in the agricultural, manufacturing and services sectors growing at double-digit rates.

“The asset finance market has a diverse range of providers – both bank and non-bank – who are crucial to achieving higher levels of business investment. As we approach the Autumn Budget, we urge the [UK] Government to recognise the importance of this market to the growth agenda by bringing leasing into the full expensing regime, and creating a new, targeted green tax allowance.”

According to the FLA report, August 2025 saw a 3% decrease in total asset finance new business when compared against August of the previous year.