Asset finance sector sees moderate growth in July 2025: FLA

Core Insights - The asset finance market experienced a 3% increase in new business in July 2025 compared to July 2024, with notable growth in new car finance and IT equipment finance sectors [1][2] - In the first seven months of 2025, new business figures were 1% higher than the same period in 2024, indicating a steady growth trend [1][2] Business Performance - Total asset finance provided by FLA members in July 2025 was £3.49 billion ($4.73 billion), with a total of £10.17 billion over the three months leading to July, reflecting a year-on-year increase of 1% [2] - Over a 12-month span to July, the total asset finance value reached £40 billion, also indicating a 1% annual growth [2] Sector Analysis - The new car finance sector grew by 10% in July, while IT equipment finance saw a significant increase of 31% [1] - Conversely, the plant and machinery finance sector experienced a 3% decrease in new business during the same timeframe [2] Excluding High-Value Deals - Excluding high-value deals, the market expanded slightly faster, with July volumes increasing 3% to £3.31 billion [3] - For the quarter, this segment reached £9.72 billion, marking a 2% rise, while the annual figure increased by 2% to £38.31 billion [3] Asset Type Performance - Plant and machinery finance, excluding high-value items, grew by 4% in July to £702 million, with a 2% increase over the quarter and a 1% annual growth to £7.55 billion [3] - Commercial vehicle finance declined by 3% in July but grew 4% over the year to reach £11.01 billion [3][4] Distribution Channels - Direct finance increased by 2% in July to £1.44 billion, with quarterly growth of 7% and a 12-month total of £17.54 billion, up 2% [5] - Broker-introduced finance rose by 7% in July but fell by 2% over the three months, with annual volumes remaining unchanged at £8.46 billion [5] Economic Context - New lending to firms in the services sector increased by 7% in July, reflecting improved business activity, with new lending to both SMEs and larger businesses increasing by 4% [7]