The Finance & Leasing Association (FLA) reported a 3% decrease in the UK’s asset finance market for August 2025. However, cumulative new business for the first eight months of 2025 increased by 1% compared to the same period in 2024. Sector-specific performance varied, with business new car finance and business equipment finance growing, while commercial vehicle finance and IT equipment finance declined significantly.

FLA’s chief economist, Geraldine Kilkelly, noted the varied performances across asset sectors and mentioned that more than half of asset finance respondents expected a decrease in business investment over the next year. The asset finance market, which funds around a third of all UK investment in vehicles, machinery, and equipment, urges the government to deliver a growth agenda to restore business confidence.

July 2025 showed a more positive trend with a 3% rise in asset finance new business compared to July 2024. Despite the August dip, FLA remains optimistic about the industry’s potential for growth and investment.

Read more at Yahoo Finance: UK asset finance new business dips in August 2025: FLA