The commercial vehicle finance sector saw a 3% decline in new business during February 2025 compared with the same month in 2024, according to the latest figures from the Finance & Leasing Association (FLA).

This downturn occurred against a backdrop of overall growth in the broader asset finance market, which increased by 1% year-on-year.

The decline in commercial vehicle finance suggests fleet operators and businesses may be delaying vehicle acquisition decisions amid economic uncertainty.

By contrast, other asset finance categories showed stronger performance, with IT equipment finance up by 35% and plant and machinery finance growing by 2% in the same period.

Overall asset finance new business for the first two months of 2025 was 2% higher than the same period in 2024, indicating continued but modest growth in business investment.

The figures show that both SMEs and larger businesses increased their use of asset finance by 2% compared with February 2024.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The asset finance market reported further growth in February but at a slower pace than in recent months.

“New asset finance lending to SMEs and larger businesses both grew by 2% compared with February 2024.”

Kilkelly added: “The US administration’s tariff hikes have weakened an already soft economic outlook. Investment will undoubtedly suffer as businesses face increased uncertainty about demand, higher taxes and higher than expected funding costs.

“Those that are investing are focusing on more efficient technology which asset finance providers play a key role in funding.”