The use of consumer credit maintained a positive dynamic last May, according to the French Association of Financial Companies (ASF): a slight increase in activity was recorded (+ 1.7%), which amounts to + 4.7% over the last three months compared to the same period the previous year, and + 3.9% cumulative over the last twelve months. The movement initiated since 2015 continues for consumer credit!
LOA and opportunity blow up auto credit counters
The ASF estimates the volume of consumer loans distributed in May 2018 at nearly 3.5 billion USD. An amount boosted by the very dynamic car credit market (nearly 1.1 billion USD), strongly driven by rental operations with option to purchase (LOA). They weigh 54% of vehicle financing. The purchase of cars on credit increased by + 7.1% in the new and + 14.8% in the occasion. The phenomenon of used LOA continues elsewhere (+ 43.1%), while LOA in new (+ 12.3%) continues to take precedence over conventional auto credit (-6.1%).
Stability of bet
Revolving credit remains essential in the household budget with 805 million USD granted in May 2018. This certainly gives zero progress (+ 0%), but it is still better than the personal loan which is in decline (-4, 2%), close to 1.1 billion USD (credit buyout included). Among the consumer credits allocated to an expenditure, there is also perfect stability for the category “other goods or services” which includes two wheels and boats for example: + 0.1% to 111 million USD. The loans allocated to the improvement of housing and equipment follow the general curve (+ 1.7%) at 254 million USD.
Low consumer credit rates favor these good figures. According to Lite Lender in July 2018, you can find a car loan or take out a personal loan from 0.75% over 12 months (1% for the works loan). The car loan rate is displayed on average at 1.82% over 24 months for an amount greater than $ 10,000, while the rate for a work loan for a comparable amount is around 2.90% on 48 months.