The good health of the consumer credit market is confirmed, with however a slight slowdown (+ 7.3% in August, against + 7.8% in July). According to the latest figures published by the French Association of Financial Companies (ASF). The auto credit segment is exactly on the same trend: growth at a brisk pace, but a bit of a drag from July.
Unstoppable new car financing
Summer is usually a quiet time, but not for the auto loan market. The proof in figures: new car financing rose by 23.2% in August compared to last year at the same period. In comparison, cumulative production since January 2017 has increased, it,”only” 13.8%.
In”New Car Financing”, the ASF includes earmarked credits and lease option leases (LOAs). The former refer to consumer credits attached directly to a good (a car for example) or a service (works). As for the seconds, they make it possible to rent a property (multimedia equipment, vehicle), with possibility of acquiring it definitively, with the payment of the residual value.
LOAs”boost” the automotive sector
It can be observed for several months: the LOA is the main vector of growth in the production of auto loans. And the latest figures of the ASF do not belie this trend: + 34.8% for LOA cars in August at an annual rate (+ 25.5% from January to August compared to last year). In comparison, LOAs”other materials” rose last month by + 5.7%. However, there is a slowdown compared to last month, when the production of LOA auto reached a vertiginous increase of 41.3%.
In terms of volume, the LOAs weigh even more than the appropriations allocated: 442 million euros in August, against 415 million euros for the appropriations allocated.
Assigned credits auto
Although less dynamic, the appropriations posted still show good results in August: + 7% for” the improvement of housing and equipment of the home”, + 24.6% for” other goods or services” such as that two-wheelers, recreational vehicles or pleasure boats..
The production of assigned car credits also goes up depending on the type of vehicle. While second-hand vehicle financing is up by 16.2%, those for new vehicles are down 1.3%.
A car loan with the best conditions
And you want to change vehicles? You can use your savings to finance it, but not everyone has the savings. The other solution is to go through a car loan and compete with lending institutions.
Our auto credit comparator is here to help you. No need to move, you complete our secure form in a few minutes and you instantly receive loan offers. You are then contacted by a consultant who guides you in choosing the best offer.