The French Association of Financial Companies (ASF) looks back on the first half of 2017.

The activity of the sector has experienced a positive development since the beginning of the year despite a decline since the spring.

French projects funded with consumer credits

French projects funded with consumer credits

The projects of individuals financed via consumer credit (personal loan, LOA, assigned credit, revolving credit) recorded an increase of 4.3% in the first half, representing a production of 20.3 billion USD. This is good news even if the sector remains degraded compared to the boom years before the crisis.

“The recovery phase of the activity started two years ago is continuing, but the growth rate is slowing down”, explains the ASF. We also noted a slight slowdown in activity in the 2nd quarter of 2017.

Different credits, different rhythms

Different credits, different rhythms

There are several types of consumer credit. Among the various financing solutions, there is revolving credit. The latter experienced a decline of -0.9% over this period. This type of credit therefore continues to decline. If in 2009 it represented 41% of annual production, it only represents 25% at the end of June 2017.

In terms of personal loans, there is an increase in production of 3.3% with 6.8 billion USD of production. Auto credit also continues to have green indicators with an increase of 10.5% in the first half, or 4.3 billion USD in loans.

Leasing with option to purchase (LOA) always stood out with + 25.4% in the 1st half, or 3.1 billion USD of production against very mixed results for the credits allocated to new cars with   -15.4% (and “only” 1.2 billion USD). Conversely, the appropriations allocated to the financing of a used car increased by 6.6%, or 1.7 billion USD.

LOA: an ever-increasing production

LOA: an ever-increasing production

The LOA is self-financing prized by individuals for its flexibility. Indeed, by subscribing to an LOA, the driver can get behind the wheel of a new car at a lower cost since he only pays rent.

He may at the end of a rental period, between 12 and 48 months, choose to return or buy it. This solution has been on the rise for several months.

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