7 September 2018
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) overall grew in July by 8% compared with the same month last year. New business for deals of up to £20 million increased by 10% over the same period.
The IT equipment finance and commercial vehicle finance sectors reported new business up in July by 60% and 15% respectively, compared with the same month in 2017, while plant and machinery finance and business equipment finance saw modest growth of 1% and 4% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance market rebounded in July despite subdued business investment as a result of Brexit-related uncertainty.
“Key sectors of the economy are using leasing and hire purchase to finance investment in equipment, with particularly strong growth in new finance provided for construction and agricultural equipment, up by 31% and 14% respectively, compared with July 2017.”
Jul 2018
% change on prev. year
3 months to Jul
2018
% change on prev. year
12 months to Jul
2018
% change on prev. year
Total FLA asset finance (£m)
2,837
+8
8,811
+5
32,056
+2
Total excluding high value (£m)
2,665
+10
8,181
+3
30,265
+3
Data Extracts:
By asset:
Plant and machinery finance (£m)
559
+1
1,780
-4
6,551
+1
Commercial vehicle finance (£m)
628
+15
2,018
+9
7,655
+2
IT equipment finance (£m)
276
+60
773
+29
2,513
+11
Business equipment finance (£m)
231
+4
694
-6
2,575
+2
Car finance (£m)
860
-2
2,554
-2
9,339
0
Aircraft, ships and rolling stock finance (£m)
31
+352
86
-29
254
-60
By channel:
Direct finance (£m)
1,359
+6
4,120
+1
14,999
-1
Broker-introduced finance (£m)
530
+22
1,581
+12
6,000
+10
Sales finance (£m)
776
+9
2,480
+2
9,267
+3
By product:
Finance leasing (£m)
303
-6
990
-2
3,859
+2
Operating leasing (£m)
530
+5
1,528
-10
6,245
-8
Lease/Hire purchase (£m)
1,564
+8
4,911
+9
17,489
+5
Other finance (£m)
354
+53
988
+6
3,175
-6
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.
Tag: Brexit
Michel Barnier says he strongly opposes May’s Brexit trade proposals
Brexit EU negotiator also suggests European carmakers will have to use fewer British-made parts Michael Barnier said the British offer on customs was illegal and the ‘common rulebook’ idea would kill the European project. Photograph: Anadolu Agency/Getty Images Michel Barnier has said he is “strongly opposed” to the prime minister’s Chequers proposals on future trade,… Continue reading Michel Barnier says he strongly opposes May’s Brexit trade proposals
Aston Martin drives ‘milestone’ £5bn float as profits accelerate
Aston Martin says it is gearing up for a “key milestone” in its history through a stock market listing. The luxury UK sports car manufacturer confirmed a story by Sky News on Tuesday that it had started the flotation process, with the aim of launching the prospectus for its Initial Public Offering (IPO) on 20… Continue reading Aston Martin drives ‘milestone’ £5bn float as profits accelerate
UPDATE 3-Aston Martin plans to go public as turnaround picks up speed
LONDON (Reuters) – Luxury carmaker Aston Martin plans to float on the London Stock Exchange, completing a turnaround for the once perennially loss-making company that could now be valued at up to 5 billion pounds ($6.4 billion). FILE PHOTO: A company logo is seen on the new Aston Martin Vantage car at a media event… Continue reading UPDATE 3-Aston Martin plans to go public as turnaround picks up speed
Brexit: what it means for the British car industry
If there was ever a company that tracked the recent downs and ups of our car industry, it’s Unipart, which was once a division of the state-owned dinosaur British Leyland but is now a thriving independent parts and logistics firm. Neill’s worries are those of the wider industry. Tariffs would be bad, but worse would… Continue reading Brexit: what it means for the British car industry
Volkswagen says new emission tests pose biggest threat
Sean Gallup/2017 Getty Images Sean Gallup/2017 Getty Images Related content LONDON (CNNMoney) – Global trade tensions have put automakers under pressure. But Volkswagen says new emission tests in Europe pose the biggest threat to its business. “We cannot rest on our laurels because great challenges lie ahead of us in the coming quarters — especially… Continue reading Volkswagen says new emission tests pose biggest threat
Britain’s car industry cautions: No-deal Brexit is our nightmare
LONDON (Reuters) – A no-deal Brexit would seriously damage the car industry in Britain and the European Union by raising costs and sowing chaos for carmakers and consumers alike, the head of Britain’s car industry warned on Tuesday. FILE PHOTO: Workers assemble cars at the plant for the Mini range of cars in Cowley, near… Continue reading Britain’s car industry cautions: No-deal Brexit is our nightmare
No deal Brexit is not an option, Britain’s car industry warns
LONDON (Reuters) – A no-deal Brexit is not an option for Britain’s car industry, given the costs and disruption that carmakers and consumers would suffer, the head of the country’s automobile industry group said on Tuesday. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said carmakers were “increasingly concerned” about… Continue reading No deal Brexit is not an option, Britain’s car industry warns
UK car production hit by ‘perfect storm’
The number of cars made in the UK fell last month after domestic demand plunged due to what the industry body called a “perfect storm of events”. Production fell 5.5% in June – driven by a 47.2% drop in production for the UK market, according to the Society of Motor Manufacturers and Traders (SMMT). The… Continue reading UK car production hit by ‘perfect storm’
Aston Martin ‘sports car for the skies’
Luxury carmaker Aston Martin has unveiled plans for a personal aircraft dubbed a “sports car for the skies”. The company has teamed up with jet engine maker Rolls-Royce and engineering boffins at Cranfield University on the futuristic project. A concept aircraft was unveiled at the Farnborough Airshow, but the consortium hopes to have a flying… Continue reading Aston Martin ‘sports car for the skies’