Fleet News

Figures reveal big shift to leasing

NEW motor finance figures reveal a further shift away from hire purchase towards leasing in the business sector. Figures for March from the Finance & Leasing Association reveal that in the first quarter of 1996 demand for hire purchase dropped 10% to £771 million while leasing rose 25% to £867 million on the strength of last August's VAT changes.

Year-on-year growth shows that the trend is continuing with hire purchase falling by 15% to £266 million compared with March last year. Meanwhile, leasing soared during the same period, rising 30% to £327 million.

Total business motor finance provided in March 1996 reached £593 million, up 5% on the same time last year. Quarterly trends shows a rise of 6% to £1,638 million compared to the first three months of 1995.

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