UK asset finance market remains stable in May

The Finance & Leasing Association (FLA) reported today that total asset finance new business – including leasing and hire purchase – remained steady in May 2025 compared to the same month last year. Over the first five months of 2025, new business rose by 1% year-on-year.

Within the market, business new car finance and business equipment finance saw growth of 4% and 6% respectively in May, while commercial vehicle finance and plant and machinery finance declined by 4% and 7%.

She added: “The asset finance market so far this year has reported growth in the value of new business provided to the major industry sectors – services, agriculture, and manufacturing – while holding steady in the construction sector.

“Our latest research suggests the asset finance industry will report single-digit new business growth by value in 2025 as a whole, as businesses look to invest in more efficient technology and greener vehicles, machinery and equipment in a lower interest rate environment.”

	May  2025	% change on prev. year	3 months to May 2025	% change on prev. year	12 months to May 2025	% change on prev. year
Total FLA asset finance (£m)	3,376	0	11,055	0	39,866	1
Total excluding high value (£m)	3,234	0	10,700	3	38,087	1
Data extracts: By asset:
Plant and machinery finance (£m)	642	-7	2,114	-1	7,560	0
Commercial vehicle finance (£m)	893	-4	2,954	-4	11,061	3
IT equipment finance (£m)	86	-38	301	-13	1,259	2
Business equipment finance (£m)	136	6	487	12	1,748	-4
Car finance (£m)	1,187	5	3,961	7	13,451	-3
Aircraft, ships and rolling stock finance (£m)	102	467	142	33	384	10
By channel:
Direct finance (£m)	1,612	15	4,993	8	17,434	0
Broker-introduced finance (£m)	684	-15	2,275	-2	8,396	0
Sales finance (£m)	937	-10	3,432	-1	12,257	2
By product:
Finance leasing (£m)	221	-16	723	-10	3,037	-12
Operating leasing (£m)	930	2	2,988	9	10,446	5
Lease/Hire purchase (£m)	1,710	-3	5,765	-2	20,620	0
Other finance (£m)	435	37	1,333	10	4,400	4