Total asset finance new business (primarily leasing and hire purchase) fell in November 2024 by 4% compared with the same month in 2023, according to new figures released by the Finance & Leasing Association (FLA). 

In the eleven months to November 2024, new business was 3% higher than in the same period in 2023.

The commercial vehicle finance sector reported new business up in November by 11% compared with the same month in 2023. The business new car finance and plant and machinery sectors reported falls in new business of 9% and 3% respectively, over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market reported a modest fall in new business in November as new lending to SMEs and larger companies fell by 4% and 5% respectively. Of the main asset sectors, only the commercial vehicle finance sector reported new business growth.  

“We expect FLA asset finance providers to report a record level of new business in 2024 as a whole of around £39.7 billion.

"The outlook for 2025 remains challenging. Despite the lower inflation and interest rate environment, uncertainty about demand and pressure on net margins have hit business confidence and investment intentions.

"Nevertheless, FLA’s latest industry outlook survey suggested that almost two-thirds of asset finance respondents expected some increase in new business over the next year.”