According to figures updated on Wednesday by the French Association of Financial Companies (ASF), consumer credit stagnated in 2023. The crisis in the personal loan market is barely offset by automobile financing.
If the market is weighed down by the collapse of personal loans and the exhaustion of allocated credits (for the purchase of a good or a service, editor’s note), the raises automobile financing by leasing (with or without purchase option) will have made it possible to mitigate the drop in production, indicated the ASF in a press release.
The volume of new consumer loans granted in 2023 rises 49.3 billion eurosa decline of 0.8% over one year.
These figures take into account rental operations without purchase option from individuals (LLD operations which are not consumer credit). Without these operations, the drop in activity is -2.7%, the ASF highlighted on Wednesday.
Rental with purchase option (LOA) operations are experiencing strong development for the financing of new cars (+9.7%) and remain stable for used vehicles.
Now, 28% of used passenger cars are financed by LOA, compared to only 14% in 2019, indicates the association.
Drop in personal loans
Conversely, personal loans (consumption credits not allocated to a particular good) are down sharply over the year, by 22.8%, restrained by tensions linked to the rate of usury, despite the measures of monthly payment, according to the ASF.
Since the start of central banks’ interest rate hikes to counter inflation, these products have been much less profitable for banks and other players in this market, who have become more selective.
Revolving credits are experiencing a slight acceleration (+5.6%). The ASF brings together some 250 companies involved in furniture and real estate leasing, factoring, and other associated services.
Reproduction forbidden.