UK Asset Finance Trends: Modest Growth with Clear Sector Differences   

Latest figures released by The Finance and Leasing Association (FLA) showed that UK asset finance continued to expand in the year to October 2025, with total FLA business rising by 2.2% to £40.6bn. While growth remains positive, the latest figures suggest a market that is stabilising rather than accelerating, shaped by cautious business investment, elevated borrowing costs and uneven sector demand.

New Cars delivered solid growth of 3.3%, reaching £11.8bn. Improved vehicle availability and the ongoing replacement of ageing fleets have supported volumes, alongside continued demand for lower-emission vehicles. However, growth remains controlled, reflecting affordability pressures and a more measured approach to capital spending among businesses. 

By contrast, CVs (commercial vehicles) were effectively flat, increasing by just 0.1% year on year. Following several years of strong growth driven by logistics and e-commerce, the segment appears to be entering a period of consolidation. Many operators are extending replacement cycles and maximising utilisation of existing assets as economic uncertainty and cost pressures persist. 

Plant & Machinery finance grew by a modest 1.0% to £7.7bn. This steady performance highlights the ongoing need for investment in core productive assets, particularly in construction and manufacturing, while also underscoring continued caution around discretionary or expansionary capital expenditure. 

The strongest growth was seen in IT & Business Equipment, which rose by 4.1% to £3.1bn. Digital transformation remains a priority for UK businesses, with investment in technology, automation and data infrastructure helping to drive efficiency and competitiveness. Shorter technology lifecycles and flexible finance solutions are reinforcing demand in this segment. 

Overall, the UK asset finance market is showing resilience, with growth increasingly concentrated in technology and selective fleet renewal rather than broad-based expansion. As economic conditions evolve, the outlook will depend on improvements in confidence, borrowing costs and the pace at which businesses are willing to commit to longer-term investment.