Asset finance new business grew 7% in October

The UK asset finance market continued its upward trajectory in October, with new figures from the Finance & Leasing Association (FLA) showing a 7% year-on-year rise in new business. The growth marks the second consecutive month of solid expansion and puts the industry on course for a record-breaking year.

According to the FLA, total asset finance new business – covering leasing and hire purchase – was 2% higher in the first ten months of 2025 compared with the same period in 2024.

Growth was led by the business new car finance sector, which saw a 7% increase, and plant and machinery finance, which rose 6% compared with October last year. In contrast, the commercial vehicle finance sector experienced a 6% decline over the same period, highlighting uneven demand across asset categories.

New asset finance lending to both SMEs and larger businesses rose 8% in October, reflecting strengthening investment appetite ahead of year-end.

The standout performance came from the manufacturing sector, where new lending surged 34% year-on-year. The construction and services sectors also posted gains, up 8% and 3% respectively.

“The asset finance market made a positive start to the final quarter of 2025, recording a second consecutive month of broad-based growth in October.

“FLA asset finance providers are on track to reach a record level of new business in 2025 of almost £41 billion. The industry directly supports the real economy by providing finance to businesses of all sizes, funding a third of UK investment in machinery, equipment and vehicles annually.

“With around a third of high-growth firms using asset finance, the industry is playing a key role in funding the investment needed to raise productivity and household living standards.”

	Oct  2025	% change on prev. year	3 months to Oct 2025	% change on prev. year	12 months to Oct 2025	% change on prev. year
Total FLA asset finance (£m)	3,683	7	10,262	6	40,559	2
Total excluding high value (£m)	3,444	5	9,810	5	38,733	3
Data extracts:   By asset (excluding high value):
Plant and machinery finance (£m)	669	6	1,924	5	7,638	1
Commercial vehicle finance (£m)	923	-6	2,603	-7	10,811	0
IT equipment finance (£m)	106	23	335	9	1,247	1
Business equipment finance (£m)	152	2	472	9	1,780	4
Car finance (£m)	1,253	10	3,471	9	13,806	3
By channel:
Direct finance (£m)	1,666	6	4,553	8	17,810	5
Broker-introduced finance (£m)	778	5	2,302	6	8,589	0
Sales finance (£m)	1,001	3	2,956	1	12,333	3
By product:
Finance leasing (£m)	272	11	788	-1	2,967	-9
Operating leasing (£m)	871	5	2,549	6	10,626	5
Lease/Hire purchase (£m)	1,858	0	5,175	1	20,731	0
Other finance (£m)	579	69	1,434	40	4, 858	15