After slowing down in July, production of new car finance accelerated in May. According to the latest figures from the ASF (French Association of Financial Companies), the LOA continues to play a role of “impeller” for the auto credit market.
More than 10% growth in May
While new car financing slowed down in April (+ 4.9%), activity has skyrocketed. ” The increase in new car financing reached + 12.6% compared to May 2016 and + 8.9% on average over the last three months. The sustained development of LOA operations once again explains this good performance, “says ASF. All loans combined, auto loans weighed 717 million euros in May, against 637 million euros 1 year ago.
LOA cars that flameble.
Because there is no “one”, but several types of financing for new vehicles. The ASF distinguishes 2: the LOA (lease with option to purchase) and the credits allocated. With different operations and results.
Let’s start with the LOA. This type of transaction posted an insolent growth of + 24.2% compared to May 2016. This increase also marks an acceleration compared to last April (+ 18.8%).
For the record, the LOA makes it possible to rent a good (in particular a vehicle) for the payment of rents. At the end of the lease, the driver has the option to return the vehicle or acquire it permanently. In the second case, he must pay the residual value of the property, as defined in the contract.
And the allocated credits flanking
As for the credits allocated to the acquisition of a new vehicle, the results are less convincing. In May, production drops by 9.5%. This tumble nevertheless remains less spectacular than that recorded in May (-21%).
Note that the credits allocated to used cars fared much better, with much more convincing results (+ 8.4%).