Total asset finance new business (primarily leasing and hire purchase) grew in January 2024 by 8% compared with the same month in 2023, according to new figures released today by the Finance & Leasing Association (FLA).

In the twelve months to January 2024, new business was 12% higher than in the same period in 2023.

The business new car finance and commercial vehicle finance sectors reported new business up in January by 17% and 7% respectively, compared with the same month in 2023. The IT equipment finance sector reported new business up by 9% and plant and machinery finance new business held steady over the same period.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market made a positive start to 2024 boosted by further growth in the vehicle finance sectors. The agricultural equipment finance sector also recorded strong growth in January as new business grew by 23% compared with the same month in 2023. The continued strength of new vehicle registrations is likely to support asset finance growth in the coming months.

“The industry continued to support business investment by SMEs and larger companies as new asset finance lending to these businesses increased in January by 5% and 13% respectively, compared with the same month in 2023.

 “We welcome the Chancellor’s recognition of the importance of leasing in supporting business investment and increasing productivity by announcing in the Spring Budget 2024 the intention to include leased assets in the full expensing regime.  We urge the Government to make sure this happens as soon as possible so the asset finance industry can help more businesses invest and grow.”