15 August
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) fell in June by 3% compared with the same month in 2017, but grew by 5% in the second quarter of 2018 as a whole.
The commercial vehicle finance and IT equipment finance sectors reported new business up by 9% and 15% respectively in the second quarter of 2018 compared with the same quarter in 2017. .
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance market reported new business up in the first half of 2018 by 1% compared with the same period a year earlier. This was in line with modest growth in UK business investment over the same period.”
Jun 2018
% change on prev. year
3 months to Jun
2018
% change on prev. year
12 months to Jun
2018
% change on prev. year
Total FLA asset finance (£m)
3,044
-3
8,709
+5
31,846
+1
Total excluding high value (£m)
2,869
-4
8,067
+3
30,023
+2
Data Extracts:
By asset:
Plant and machinery finance (£m)
622
-15
1,794
0
6,554
+2
Commercial vehicle finance (£m)
706
+2
2,039
+9
7,575
+1
IT equipment finance (£m)
326
+26
632
+15
2,401
+6
Business equipment finance (£m)
260
-8
670
-2
2,569
+2
Car finance (£m)
827
-10
2,586
0
9,353
+1
Aircraft, ships and rolling stock finance (£m)
39
+188
69
-76
230
-68
By channel:
Direct finance (£m)
1,428
-7
4,018
0
14,920
-1
Broker-introduced finance (£m)
519
+14
1,576
+13
5,903
+8
Sales finance (£m)
922
-6
2,473
+3
9,200
+3
By product:
Finance leasing (£m)
367
-4
1,006
+4
3,878
+4
Operating leasing (£m)
522
-19
1,475
-18
6,220
-9
Lease/Hire purchase (£m)
1,683
+6
4,957
+11
17,370
+5
Other finance (£m)
332
-21
827
-11
3,051
-15
Note to editors:
In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 billion of finance was provided to businesses and the public sector. FLA members financed a third of UK investment in machinery, equipment and purchased software in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Author: FLA (Finance and Leasing Assoc) Official News
Consumer finance up by 9% in June
15 August 2018
New figures released today by the Finance & Leasing Association (FLA) show consumer finance new business grew in June by 9%, compared with the same month last year.
Credit card and personal loan new business together grew by 10% compared with June 2017, while retail store and online credit new business increased by 5%. Second charge mortgage new business fell 6% by value and 3% by volume over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The latest figures for consumer finance new business continued to reflect wider economic trends, with the World Cup and hot weather providing a further boost to retail sales.
“FLA members’ share of the UK consumer credit market held steady in the twelve months to June at 35.9%.”
Table 1: New consumer credit lending
Jun 2018
% change on prev. year
3 months to Jun 2018
% change on prev. year
12 months to Jun 2018
% change on prev. year
Total FLA consumer finance (£m)
8,691
+9
26,519
+14
101,120
+8
Data extracts:
Retail store and online credit (£m)
726
+5
2,213
+8
9,302
+10
Credit cards & personal loans (£m)
4,333
+10
13,431
+14
50,662
+9
Second charge mortgages (£m)
91
-6
262
-2
1,019
+6
Car finance (£m)
3,176
+10
9,524
+17
36,007
+8
Note to editors:
FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Consumer car finance market recovers in April
June 8 2018
New figures released today by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer new car finance market grew 31% by value and 27% by volume in April, compared with the same month in 2017.
The percentage of private new car sales financed by FLA members through the POS was 89.7% in the twelve months to April 2018.
The POS consumer used car finance market also reported new business growth in April of 28% by value and 20% by volume.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“These figures partly reflect a relatively subdued April last year. Trends in the new car finance market in 2018 so far have been affected by the pattern of demand for private new cars over the same period last year, when car purchases were brought forward into the first quarter prior to vehicle excise duty changes in April.
“The POS consumer car finance market overall reported new business volumes up in the first four months of 2018 by 4% compared with the same period in 2017, in line with expectations of modest single-digit growth in 2018 as a whole.”
Table 1: Cars bought on finance by consumers through dealerships
New business
Apr 2018
% change on prev. year
3 months to Apr 2018
% change on prev. year
12 months to Apr 2018
% change on prev. year
New cars
Value of advances (£m)
1,606
+31
5,883
+2
18,962
+1
Number of cars
81,734
+27
300,464
-4
974,659
-8
Used cars
Value of advances (£m)
1,569
+28
4,474
+15
16,282
+14
Number of cars
134,159
+20
383,666
+10
1,406,333
+8
Total cars
Value of advances (£m)
3,174
+29
10,357
+7
35,244
+6
Number of cars
215,893
+23
684,130
+3
2,380,992
+1
Table 2: Cars bought on finance by businesses
New business
Apr 2018
% change on prev. year
3 months to Apr 2018
% change on prev. year
12 months to Apr 2018
% change on prev. year
New cars
Number of cars
44,575
+10
118,923
-6
462,403
-3
Used cars
Number of cars
4,159
+35
16,857
+41
62,518
+7
Note to editors:
In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2017. £44 billion of it supported the purchase of new and used cars, including over 88% of private new car registrations.For media enquiries, please contact the FLA press office on 020 7420 9656.
Consumer motor finance new business falls 5% in March
11 May 2018
New figures released today by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer car finance market fell 5% by value and 10% by volume in March, compared with the same month in 2017. In Q1 2018, new business grew 3% by value, while volumes fell by 1% compared with the same quarter in 2017.
The POS consumer new car finance market reported a fall in new business in March of 9% by value and 15% by volume, compared with the same month in 2017.
The percentage of private new car sales financed by FLA members through the POS was 89.4% in the twelve months to March, up from 88.5% in the same period to February.
The POS consumer used car finance market reported new business up 4% by value in March, while volumes fell by 1%, compared with the same month in 2017.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“Trends in the new car finance market in the first quarter of 2018 are likely to have been affected by the impact on demand for private new cars in Q1 2017 of changes to vehicle excise duty introduced in April that year. However, in the first quarter of 2018, point of sale consumer car finance new business volumes overall were only 1% lower than in the same period in 2017.”
Table 1: Cars bought on finance by consumers through dealerships
New business
Mar 2018
% change on prev. year
3 months to Mar 2018
% change on prev. year
12 months to Mar 2018
% change on prev. year
New cars
Value of advances (£m)
3,354
-9
5,445
-4
18,581
-3
Number of cars
167,965
-15
279,934
-11
957,034
-11
Used cars
Value of advances (£m)
1,495
+4
4,449
+13
15,942
+12
Number of cars
126,474
-1
381,377
+7
1,383,563
+6
Total cars
Value of advances (£m)
4,849
-5
9,894
+3
34,522
+4
Number of cars
294,439
-10
661,311
-1
2,340,597
-2
Table 2: Cars bought on finance by businesses
New business
Mar 2018
% change on prev. year
3 months to Mar 2018
% change on prev. year
12 months to Mar 2018
% change on prev. year
New cars
Number of cars
47,194
-14
102,039
-13
458,534
-5
Used cars
Number of cars
8,870
+74
18,329
+7
61,440
+5
Note to editors:
In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2017. £44 billion of it supported the purchase of new and used cars, including over 88% of private new car registrations.For media enquiries, please contact the FLA press office on 020 7420 9656.
Consumer motor finance market reports steady growth in February
6 April 2018
New figures released today by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer car finance market increased 7% by volume and 13% by value in February, compared with the same month in 2017.
New business volumes in the POS consumer new car finance market fell by 2% compared with February 2017, while the value of new business increased by 9% over the same period.
The percentage of private new car sales financed by FLA members through the POS remained steady at 88.5% in the twelve months to February, unchanged on the same period to January 2018.
The POS consumer used car finance market reported new business in February up 11% by volume and 15% by value, compared with the same month in 2017.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The POS consumer car finance market reported steady single-digit growth in February. Demand from consumers for new car finance continued to reflect trends in private new car sales. POS consumer car finance new business volumes overall in the twelve months to February were 1% higher than in the same period in 2017 at 2.4 million.”
Table 1: Cars bought on finance by consumers through dealerships
New business
Feb 2018
% change on prev. year
3 months to Feb 2018
% change on prev. year
12 months to Feb 2018
% change on prev. year
New cars
Value of advances (£m)
923
+9
3,193
0
18,917
+2
Number of cars
50,765
-2
166,558
-7
987,020
-7
Used cars
Value of advances (£m)
1,410
+15
3,925
+15
15,884
+13
Number of cars
123,033
+11
336,391
+10
1,384,880
+7
Total cars
Value of advances (£m)
2,333
+13
7,118
+8
34,801
+7
Number of cars
173,798
+7
502,949
+3
2,371,900
+1
Table 2: Cars bought on finance by businesses
New business
Feb 2018
% change on prev. year
3 months to Feb 2018
% change on prev. year
12 months to Feb 2018
% change on prev. year
New cars
Number of cars
27,125
-10
83,626
-11
470,894
-3
Used cars
Number of cars
3,836
+2
13,164
-27
57,681
+2
Note to editors:
In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2017. £44 billion of it supported the purchase of new and used cars, including over 88% of private new car registrations.For media enquiries, please contact the FLA press office on 020 7420 9656.
Asset finance market rebounds in April
8 June 2018
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 7% in April, compared with the same month in 2017.
New business in the plant and machinery finance and business equipment finance sectors was up by 13% and 18% respectively, while commercial vehicle finance new business increased by 13% over the same period.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The recovery in asset finance new business in April was broad-based. The manufacturing, agricultural and construction equipment finance sectors each reported strong growth, with new business up by 61%, 35% and 27% respectively, compared with April 2017.”
Apr 2018
% change on prev. year
3 months to Apr
2018
% change on prev. year
12 months to Apr
2018
% change on prev. year
Total FLA asset finance (£m)
2,738
+7
8,068
-1
31,650
+3
Total excluding high value (£m)
2,554
+10
7,739
+1
30,019
+5
Data Extracts:By asset:
Plant and machinery finance (£m)
574
+13
1,717
+1
6,627
+8
Commercial vehicle finance (£m)
649
+13
1,981
+1
7,485
0
IT equipment finance (£m)
136
+14
501
-5
2,335
+4
Business equipment finance (£m)
206
+18
637
+3
2,617
+7
Car finance (£m)
891
+5
2,484
-1
9,396
+3
Aircraft, ships and rolling stock finance (£m)
15
-91
53
-83
289
-56
By channel:
Direct finance (£m)
1,259
+3
3,864
0
14,978
+2
Broker-introduced finance (£m)
525
+24
1,554
+9
5,823
+10
Sales finance (£m)
771
+14
2,321
-1
9,218
+6
By product:
Finance leasing (£m)
319
+11
987
+7
3,876
+6
Operating leasing (£m)
476
-20
1,584
-15
6,412
-5
Lease/Hire purchase (£m)
1,610
+16
4,591
+5
17,083
+6
Other finance (£m)
195
-15
662
-23
3,116
-7
Note to editors:
In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Motor finance market makes positive start to 2018
21 March 2018
New figures released today by the Finance & Leasing Association (FLA) show that new business in the point of sale (POS) consumer car finance market increased 7% by volume and 13% by value in January, compared with the same month in 2017.
New business volumes in the POS consumer new car finance market fell by 4% compared with January 2017, while the value of new business increased by 4% over the same period.
The percentage of private new car sales financed by FLA members through the POS was 88.5% in the twelve months to January, compared with 88.2% in the twelve months to December 2017.
The POS consumer used car finance market reported new business in January up 13% by volume and 20% by value, compared with the same month in 2017.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“New business trends in the POS consumer car finance market continued in a similar vein to 2017. In the twelve months to January, overall new business volumes in this market held steady at almost 2.4 million.”
Table 1: Cars bought on finance by consumers through dealerships
New business
Jan 2018
% change on prev. year
3 months to Jan 2018
% change on prev. year
12 months to Jan 2018
% change on prev. year
New cars
Value of advances (£m)
1,167
+4
3,686
-1
18,840
+1
Number of cars
61,204
-4
186,674
-9
988,025
-7
Used cars
Value of advances (£m)
1,544
+20
3,785
+15
15,697
+12
Number of cars
131,870
+13
320,855
+10
1,372,597
+7
Total cars
Value of advances (£m)
2,711
+13
7,471
+6
34,537
+6
Number of cars
193,074
+7
507,529
+2
2,360,622
0
Table 2: Cars bought on finance by businesses
New business
Jan 2018
% change on prev. year
3 months to Jan 2018
% change on prev. year
12 months to Jan 2018
% change on prev. year
New cars
Number of cars
27,710
-13
88,945
-13
473,970
-3
Used cars
Number of cars
5,636
-31
15,319
-21
58,472
+4
Note to editors:
In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2017. £44 billion of it supported the purchase of new and used cars, including over 88% of private new car registrations.For media enquiries, please contact the FLA press office on 020 7420 9656.
Asset finance market records seventh consecutive year of growth
9 February 2018
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 5% in 2017 – the seventh consecutive year of growth. New business in December 2017 increased by 4% compared with the same month in 2016.
The plant and machinery finance and commercial vehicle finance sectors reported new business up in 2017 by 12% and 1% respectively, compared with 2016, while new finance for business equipment was up by 7% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance industry reported a record level of new business of almost £32 billion in 2017, despite challenging economic conditions and subdued business investment growth.
“The latest figures also reveal that asset finance is a vital source of funding for SMEs when investing in business equipment and machinery. Of the total asset finance new business in 2017, £18.6 billion went to SMEs – 12% higher than in 2016.”
Dec 2017
% change on prev. year
3 months to Dec
2017
% change on prev. year
12 months to Dec
2017
% change on prev. year
Total FLA asset finance (£m)
2,632
+4
7,861
+5
31,769
+5
Total excluding high value (£m)
2,483
-1
7,695
+5
30,752
+6
Data Extracts:
By asset:
Plant and machinery finance (£m)
512
+1
1,515
+5
6,617
+12
Commercial vehicle finance (£m)
572
-14
1,934
-1
7,480
+1
IT equipment finance (£m)
293
+19
726
+14
2,285
+2
Business equipment finance (£m)
227
+6
624
+6
2,581
+7
Car finance (£m)
629
-2
2,243
+4
9,531
+5
Aircraft, ships and rolling stock finance (£m)
36
-41
60
-50
549
+20
By channel:
Direct finance (£m)
1,153
-7
3,746
0
15,477
+4
Broker-introduced finance (£m)
579
+24
1,620
+21
5,839
+14
Sales finance (£m)
752
-8
2,329
+4
9,436
+7
By product:
Finance leasing (£m)
403
+1
1,022
+5
3,809
+6
Operating leasing (£m)
511
-12
1,624
-4
6,755
0
Lease/Hire purchase (£m)
1,225
+1
4,162
+5
16,924
+8
Other finance (£m)
493
+45
1,053
+19
4,281
+5
Note to editors:
In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Consumer finance up 6% in 2017
9 February 2018
New figures released today by the Finance & Leasing Association (FLA) show growth of 6% in consumer finance new business in 2017. New business in December 2017 increased by 1% compared with the same month in 2016.
Credit card and personal loan new business together grew by 6% in 2017, while retail store and online credit new business increased by 9%. Second charge mortgage new business increased 14% by value and 10% by volume over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“Growth in retail store and online credit new business in the final quarter of 2017 was consistent with the seasonal pick-up in retail sales.
“The overall performance of the consumer finance market in 2017 was in line with expectations. We expect the market to continue to report modest single-digit growth in 2018 as a whole.”
Table 1: New consumer credit lending
Dec 2017
% change on prev. year
3 months to Dec 2017
% change on prev. year
12 months to Dec 2017
% change on prev. year
Total FLA consumer finance (£m)
7,605
+1
24,177
+6
96,299
+6
Data extracts:
Retail store and online credit (£m)
1,032
+13
2,935
+11
8,992
+9
Credit cards & personal loans (£m)
4,188
+1
12,556
+5
47,911
+6
Second charge mortgages (£m)
76
+3
245
+9
1,024
+14
Car finance (£m)
2,074
-2
7,559
+5
34,220
+6
Note to editors:
FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.
Second charge mortgage new business volumes grow in 2017
9 February 2018
Commenting on the 2017 new business figures for the second charge mortgage market, Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association (FLA), said:
“Second charge mortgage new business volumes have now returned to levels last seen in 2015, before regulation transferred to the FCA’s mortgage regime. The sector has shown resilience during a period of significant regulatory change, as it works to ensure that all the new regulatory requirements are in place.
“Consumers use second charge mortgages for a variety of purposes, particularly funding home improvements and property extensions.”
Table 1: New second charge mortgage lending
Dec 2017
% change on prev. year
3 months to Dec 2017
% change on prev. year
12 months to Dec 2017
% change on prev. year
Value of new business (£m)
76
+3
245
+9
1024
+14
Number of new agreements (No.)
1,584
-1
5,415
+7
21,947
+10
Note to editors:
FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and instalment credit providers.In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £96 billion of this was in the form of consumer credit, representing over a third of total new consumer credit written in the UK in 2017.For media enquiries, please contact the FLA press office on 020 7420 9656.