Credit: Shutterstock.com reveals that in October 2024, total asset finance new business (mainly leasing and hire purchase) witnessed a 4% increase compared to the same month in 2023. Over the ten months to October 2024, new business also showed a 4% rise compared to the corresponding period in 2023.

Positive Start to the Final Quarter

In October 2024, the commercial vehicle finance and plant and machinery finance sectors experienced growth. Commercial vehicle finance saw a 12% increase, while plant and machinery finance grew by 8% compared to the same month in 2023. However, the new car finance sector reported a 7% decline during the same period.Geraldine Kilkelly, Director of Research and Chief Economist at the Finance & Leasing Association (FLA), commented on these figures. She stated that the asset finance market began the final quarter of 2024 on a positive note, with growth across most major asset sectors. New lending to SMEs and larger companies both increased by 5% over the same period.The FLA’s Q4 2024 Industry Outlook Survey indicated that asset finance providers anticipate that the Autumn Budget measures of higher taxes will restrain business investment. 44% of providers expect some decrease in business over the next twelve months. Additionally, 64% expect an increase in new business over the next year, which is lower than the 89% reported in the Q3 2024 Survey. A further 22% anticipate that new business levels will remain stable.

Commercial Vehicle Finance Growth

The growth in the commercial vehicle finance sector is a significant development. This indicates a positive trend in the demand for commercial vehicles and the associated financing options. It may suggest that businesses are investing in their fleets or expanding their operations, leading to an increase in commercial vehicle finance activities. This growth could have a ripple effect on various industries that rely on commercial vehicles for their operations.For example, logistics companies may be expanding their delivery fleets to meet the growing demand for goods. Construction firms might be investing in new trucks and machinery to take on more projects. The increase in commercial vehicle finance also reflects the confidence of lenders in the commercial vehicle market and their willingness to provide financing to businesses.

Plant and Machinery Finance Expansion

The 8% growth in plant and machinery finance is another notable aspect. This sector plays a crucial role in various industries such as manufacturing, construction, and agriculture. An increase in plant and machinery finance indicates that businesses are investing in new equipment and machinery to enhance their production capabilities or upgrade their existing assets.This growth can lead to increased productivity and competitiveness for businesses. It also shows that there is a demand for modern and efficient plant and machinery in different sectors. Lenders are responding to this demand by providing more financing options, which helps businesses acquire the necessary equipment to drive their growth.

New Car Finance Decline

The 7% fall in new car finance is a contrasting trend. It may be influenced by several factors such as changes in consumer preferences, economic conditions, or competition from other vehicle financing options. A decline in new car finance could potentially impact the automotive industry, including car manufacturers, dealers, and related service providers.However, it is important to note that this decline does not necessarily mean a decrease in overall vehicle sales. Other factors such as used car sales and alternative financing methods may compensate for the decline in new car finance. It also highlights the need for car manufacturers and financiers to adapt to changing market dynamics and offer more flexible financing options to attract customers.Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research and gain a competitive edge. View profiles in store.Company Profile – free sample. Thank you! Your download email will arrive shortly.We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form. By GlobalData.Tick here to opt out of curated industry news, reports, and event updates from Leasing Life.I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the privacy policy.Submit and download.Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.Sign up for our daily news round-up! Give your business an edge with our leading industry insights.