Consumer credit: the LOA and the automobile are the main drivers of the market

Consumer credit in France recorded solid growth in the second quarter, after an already positive first quarter, thanks among other things to the dynamism of automobile financing, announced Wednesday the French Association of Financial Societies (ASF).

Between April and the end of June, the cumulative amount of new consumer credit increased by 7.3% compared to the same period in 2017, after an increase of 3.2% in I have observed this in the first quarter, specified the ASF in a press release . This increase brings the pace of growth in consumer credit to 5.3% in the first half of the year, which is thus continuing to gain momentum after already four consecutive years of increase.

In the second quarter, all the sectors are well oriented, details the ASF, which specifies that the largest increase is recorded by the financing of used cars with a progression of almost 17% over one year, after already a jump of 13.3% over the first three months of the year.


Used car: + 42% for LOA!

car loans

Financing for new cars also posted a sustained increase in the second quarter, almost 13%, after 8.5% in the first quarter. In this sector of automobile financing, the ASF stresses once again the predominant weight of rental operations with option to purchase (LOA), which jumped 42% for the occasion and 17% for new buildings, where the appropriations affected increased by 15% and by 0.7% respectively.

As for personal loans, the growth is increasing, continues the association, which notes an increase in new credits by 5.9% after an increase of 1.5% in the first three months of 2018. When it comes to the financing earmarked for household goods (household appliances, multimedia equipment, furniture, etc.), these increase by 5.3% in the second quarter after a 2% decline in the first quarter, bringing the change over the first six months of the year to + 1.7%.


Revolving loans remained broadly stable


With a very small increase of 0.4%, which comes after a decline of 0.7% in the first three months of the year and which limits the decline in this type of loan to 0.2% in the first half. Often singled out in situations of over-indebtedness, renewable credits have seen their supervision tightened for several years and now count only for less than a quarter of consumer credit, against more than 40% at the end of the 2000s.

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