Total asset finance new business (primarily leasing and hire purchase) grew in April 2024 by 31% compared with the same month in 2023.  In the first four months of 2024, new business was 7% higher than in the same period in 2023, according to new figures released by the Finance & Leasing Association (FLA).

The business new car finance and commercial vehicle finance sectors reported new business up in April by 35% and 45% respectively, compared with the same month in 2023.  New business in the plant and machinery finance and business equipment finance sectors increased by 9% and 4% respectively, over the same period.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The strong performance by the asset finance market in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter. The vehicle finance sectors have continued to drive growth this year with new business up by 15% in the first four months of 2024.  By contrast, the machinery and equipment finance sectors reported new business 9% lower over the same period.

“Key to any new Government initiatives to boost long-term economic growth will be increasing business investment.  The asset finance industry which has funded as much as 40% of UK investment in machinery, equipment and vehicles will play a pivotal role in supporting the drive among businesses of all sizes to achieve growth and higher productivity sustainably.”