AF new business grows 5pct in February
09/04/2026
New figures released earlier this week by the Finance & Leasing Association (“FLA”) show that total asset finance new business (primarily leasing and hire purchase) grew by 5pct in February 2026 compared with the same month in 2025. In the first two months of 2026, new business was 1pct lower than in the same period in 2025.
The IT equipment finance and plant and machinery finance sectors reported growth in new business in February of 19pct and 25pct respectively, compared with the same month in 2025. The commercial vehicle finance sector reported a 6pct increase in new business over the same period.
New asset finance lending to SMEs grew by 13pct in February compared with the same month in 2025, while new lending to larger businesses fell by 10pct over the same period.
The same data also shows that consumer car finance new business volumes grew by 2pct in February 2026 compared with the same month in 2025. The corresponding value of new business was 5pct higher over the same period. In the first two months of 2026, new business volumes grew by 1pct compared with the same period in 2025.
The consumer new car finance market reported new business up 16pct by value and 15pct by volume in February compared with the same month in 2025. In the first two months of 2026, new business volumes in this market were 14pct higher than in the same period in 2025.
The consumer used car finance market reported the value of new business in February at a similar level to the same month in 2025, while new business volumes fell by 1pct. In the first two months of 2026, new business volumes in this market were 3pct lower than in the same period in 2025.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said, “February’s data show solid performances in machinery and equipment finance, underpinned by increased levels of new business across key sectors such as manufacturing, agriculture and construction.
“These trends reinforce the important role asset finance continues to play in supporting business investment, particularly as firms focus on maintaining and enhancing productive capacity.
“The consumer new car finance market recorded a sixth consecutive month of growth in February, with new business volumes reaching their strongest February level since before the pandemic. At the same time, the used car finance market continued to show a broadly stable year‑on‑year performance.”
Geraldine Kilkelly concluded, “The UK economy now faces a materially more challenging outlook, with the conflict in the Middle East likely to weigh on activity, confidence and financial conditions. However, with FLA members financing 34.3pct of UK investment in machinery, equipment and vehicles in 2025, the highest share since 2019, the sector remains well placed to continue supporting investment despite significant ongoing economic uncertainty.”
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