Consumer credit activity did not weaken in July according to the report of the French Association of Financial Companies: their production increased by 12.2% compared to the same period in 2017. The strongest increase for over a year and a half! The trend has been increasing since 2015, but the last few months have seen an acceleration in the production of consumer credit (+ 6.3% since the start of the year).
LOA is growing
Rental with option to purchase ( LOA) represents only 20% of the total volume of consumer credit , but it is growing at lightning speed! + 18.9% in July, thanks in particular to the democratization of the LOA for the purchase of used cars (+ 45.9%), while the success of this method of financing for new cars continues not (+ 15.5%). The LOA also extends to other equipment, with the same enthusiasm (+ 34.1%).
Auto financing on the rise
In the wake of the good figures on the automobile market, vehicle financing is doing well: LOA + car credit, the ASF report for July reports an increase of + 14.7% in new and + 13.5% on the occasion. Although largely exceeded by rental with purchase option, which finances three times more new vehicles than car credit , the latter is still increasing (12.5%), as is the car loan for a car. used (+ 10.6%), which remains much more used than the LOA . Also note the good health of the motorcycle, boat and various leisure vehicles credit (+ 18.7%), which exceeded 100 million dollars in July 2018.
Strong growth in personal loans
The personal loan remains the consumer credit that weighs the most : more than 1.2 billion dollars in July (+ 16.7%), nearly 8.3 billion dollars since early 2018 (+5.5 %). These figures include loan buy-backs, which benefit from current low rates . Proof of the excellent orientation of consumer credit, even the volume of revolving credit increased in July (+ 2.2%) to exceed 900 million dollars. Since the start of the year, however, this type of loan has been stable (+ 0.2%). In both cases, it is a reserve of money to finance personal projects or the purchase of devices or equipment.