Asset finance new business increased by 3% in July 2025 compared to July 2024, reaching £3.49bn. The first seven months of 2025 saw a 1% rise in new business, with notable growth in new car finance (10%) and IT equipment finance (31%), but a 3% decrease in plant and machinery finance.
Over the three months leading to July, total asset finance reached £10.17bn, reflecting a 1% year-on-year increase. Excluding high-value deals, the market expanded slightly faster, with July volumes increasing by 3% to £3.31bn. The total asset finance value over 12 months was £40bn, also indicating a 1% annual growth.
Plant and machinery finance saw steady growth, up 4% in July to £702m, 2% over the quarter, and 1% annually to £7.55bn. Commercial vehicle finance declined by 3% in July, but grew 4% over the year to reach £11.01bn. Car finance saw a 7% increase in July, 3% growth over the quarter, but a 2% drop over the year to £13.50bn.
Broker-introduced finance rose by 7% in July, but fell by 2% over the three months, with annual volumes remaining unchanged at £8.46bn. Sales finance experienced modest growth, up 3% in July, remaining flat over the quarter, and increasing 2% over the year to £12.30bn. Direct finance increased by 2% in July to £1.44bn, showing quarterly growth of 7%.
Finance leasing grew by 7% in July to £270m, but saw a 12% decline over the quarter and an 11% decrease over the year to £2.97bn. Operating leasing sustained growth, up 4% in July, 2% over the quarter, and 4% annually to £10.48bn. Lease and hire purchase volumes fell by 2% in July, remained unchanged over the quarter, and showed no change over the year at £20.66bn.
Other types of finance rose by 6% in July, surged 25% over the quarter, and grew 7% annually to £4.52bn. FLA director Geraldine Kilkelly noted positive growth in new business, reaching over £40bn in the 12 months to July 2025. New lending to firms in the services sector increased by 7% in July, reflecting improved business activity.
Read more at Yahoo Finance: Asset finance sector sees moderate growth in July 2025: FLA