Consumption credit: production resumes colors

The production of consumer credit reaches 42 billion euros between the summers of 2017 and 2018. Levels return to ceilings observed 10 years ago.

Production in progress

Is consumer credit regaining color?

consumer credit,loan

Professionals in the sector tend to validate this observation. Indeed, according to their figures the “credit conso” shows signs of good health. Between the summer of 2017 and that of the current year, institutions specializing in consumer credit have unlocked some 42 billion euros to individuals. Not surprisingly, personal loans are primarily boosted by auto financing.

In fact, the automotive sector can count on the attractiveness of leasing purchases starting with lease with a purchase option (+ 17.9% of production). Although repayment payments are replaced by rents, this financing remains a form of consumer loan. The French quickly adopted the LOA in relation to conventional car loans. However, many comparisons conducted by consumer magazines show that auto credit remains advantageous in many cases.

Auto financing in the locomotive

Auto financing,vehicle loan

But the LOA makes it possible to change vehicles regularly and thus to avoid certain costs related to wear. This aspect is particularly pleasing to people who are afraid to invest thousands of euros in lost parts in increasingly expensive auto parts. In a different register, the long-term lease (LLD) allows to ride with a recent vehicle but like the rental property, it is not an investment. The funds will not be recovered by the tenant. As for the traditional car credit, it is not left since it has risen by 2.9% since the beginning of the year.

The good health of the automobile market thus contributes to the dynamics of consumer finance. This type of credit returns to levels that had not been observed since 2008, ie 45 billion euros of production. It remains to be seen if this dynamic will remain constant in the next few months. As a reminder, after the financial crisis, production fell by some 10 billion euros in France.