The Finance & Leasing Association (FLA) has published new data indicating a slight dip in the UK’s asset finance market for August 2025.  

The figures reveal a 3% decrease in total asset finance new business compared with the same month the previous year.  

Despite this monthly dip, the cumulative new business for the first eight months of 2025 has seen a marginal increase of 1% over the same period in 2024. 

Sector-specific performance varied, with the business new car finance and business equipment finance areas experiencing growth in August, registering increases of 7% and 4% respectively, over the same month in 2024.  

Conversely, the commercial vehicle finance and IT equipment finance sectors witnessed declines.  

The commercial vehicle finance sector witnessed a significant 17% drop in new business while the IT equipment finance sector’s new business was reduced by 11% compared to August 2024. 

FLA chief economist and research director Geraldine Kilkelly said: “The asset finance market reported a modest fall in new business in August with performances varying across asset sectors. The weakness in the CV [commercial vehicle] finance sector mirrored lower new CV registrations. 

“FLA’s Q3 [third-quarter] 2025 Industry Outlook Survey showed that more than half of asset finance respondents expected some decrease in business investment over the next year, while the proportion of respondents anticipating an increase in new business over the next 12 months fell from 79% to 71% between Q2 and Q3 2025. 

“As we approach the Autumn Budget, we urge the government to deliver a growth agenda that restores business confidence. The asset finance market directly supports the real economy, funding around a third of all UK investment in vehicles machinery and equipment.”  

Meanwhile, July 2025 had presented a more favourable trend, with a 3% rise in asset finance new business relative to July 2024.