Consumer credit: a slightly growing marketOn November 3, 2019 by admin
Neither more nor less: the production of consumer credits in August 2019 was equivalent to that of August 2018, i.e. 3.1 billion USD according to figures from the French Association of Financial Companies. Stability is also required between June and August (-0.1%), while the counters for the year 2019 are in the green (+ 1.5%).
The appropriations affected are on the rise
Consumer credit figures for August 2019 appear to be cut and paste from the previous year at the same time. But when we go into detail, we observe trends: the financing of new cars is down (-6.2%) unlike used car credit (+ 15.6%), to which we include the LOA d opportunity that continues its breakthrough (+ 49% in August, + 45% at the start of the year). Revolving credit fell slightly (-1.6%), while loans allocated to improving the home and household goods posted double-digit growth (+ 12.2%). Meanwhile, the personal loan remains stable (+ 0.1%), while the LOA shows a decline (-4.4%).
Personal loan down in 2019
If we look at the figures for the first eight months of 2019 cumulatively, we can take a more precise look at the movements that affect the production of consumer credit. It can thus be seen that rental operations with purchase option are increasing (+ 3.3%), but not as much as assigned loans (+ 7.1%). We also note that the personal loan is in decline (-2.7%) although it remains the most important consumer loan in volume (9.1 billion USD out of a total volume of 22.9 billion USD). If the revolving credit shows a small increase (+ 0.3%), it is lower in volume by the credits allocated.
The second-hand market boosts auto financing
With more than 9.3 billion USD borrowed between January and August 2019, and in a context of favorable auto credit rates, auto financing exceeds consumer credit unaffected. But the increase compared to the same period in 2019 (+292 million USD) is due to the good health of the occasion (+ 12.4%), which does more than compensate for the decline in new construction (-1, 1%). Second-hand car loans gained 8.8% and almost double that of new car loans in volume, especially since the latter fell by 4.7%. The new, stable LOA (+ 0.1%), however, remains the preferred method of financing for the purchase of a vehicle since it concentrates half of the total amount advanced by banks to motorists.
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