Asset finance new business (primarily leasing and hire purchase) grew by 11% during Q1 2019 compared to the same period last year, according to new figures released today by the Finance & Leasing Association (FLA).
New finance for manufacturing and construction equipment increased by 25% and 26% respectively, compared to Q1 2018.
The growth followed a strong market in March, which grew by 11% year-on-year, with including particularly high growth in commercial vehicle finance and IT equipment finance sectors.
All channels delivered growth during the quarter, although the strongest performance came from broker-introduced finance, which rose 19% year-on-year.
During March, broker-introduced finance accounted for 19% of sales, up from 18% for the same period last year, while direct finance took 50%, down from 51%, and sales finance 30%, down from 31%.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market reported a record level of monthly new business in March and the strongest quarterly growth in Q1 2019 since Q3 2016.
“Asset finance continued to support key sectors of the economy in the first quarter.”
| March 2019 | % change on
prev yr |
3 mths to
March 2019 |
% change on
prev yr |
12 mths to
March 2019 |
% change on
prev yr |
|
|---|---|---|---|---|---|---|
| Total FLA asset finance (£m) | 3,679 | +11 | 8,490 | +11 | 33,447 | +7 |
| Total excluding high value (£m) | 3,403 | +7 | 7,861 | +9 | 31,069 | +5 |
| By asset: | ||||||
| Plant and machinery finance (£m) | 728 | +11 | 1,861 | +12 | 7,055 | +8 |
| Commercial vehicle finance (£m) | 994 | +17 | 2,231 | +23 | 8,402 | +14 |
| IT equipment finance (£m) | 211 | +5 | 612 | +18 | 2,808 | +19 |
| Business equipment finance (£m) | 252 | -1 | 623 | +2 | 2,670 | +5 |
| Car finance (£m) | 993 | -3 | 2,209 | +2 | 8,940 | -3 |
| Aircraft, ships and rolling stock finance (£m) | 111 | +238 | 147 | +122 | 392 | -12 |
| By channel: | ||||||
| Direct finance (£m) | 1,711 | +5 | 3,926 | +7 | 15,492 | +4 |
| Broker-introduced finance (£m) | 658 | +19 | 1,642 | +19 | 6,354 | +16 |
| Sales finance (£m) | 1,033 | +3 | 2,293 | +5 | 9,223 | +1 |
| By product: | ||||||
| Finance leasing (£m) | 429 | +6 | 1,040 | +14 | 4,220 | +11 |
| Operating leasing (£m) | 645 | -10 | 1,447 | -6 | 5,894 | -9 |
| Lease/Hire purchase (£m) | 2,006 | +9 | 4,756 | +15 | 18,769 | +11 |
| Other finance (£m) | 439 | +53 | 963 | +24 | 3,240 | +7 |
Written by John Maslen
Source: Asset Finance International