Consumer credit: good figures for April

The production of consumer loans experienced a strong surge last April: + 6.3% compared to the same period the previous year. Restricted credits and LOA explain this improvement, which also involves the revolving loan.

Auto financing boosts consumer credit

Auto financing boosts consumer credit

Lending institutions recorded 3.8 billion USD in loans in the world of consumer credit in April 2019 announced the French Association of Financial Companies, which corresponds to an increase in production of 6.3 % compared to 2018. Cumulated over the first four months of the year, the increase is 2%, or almost 300 million USD more, almost entirely absorbed by car financing (+ $ 293 million).

The opportunity is worn like a lion

The opportunity is worn like a lion

Since the beginning of the year, the purchase of second-hand cars on credit has jumped the figures for used car loans and used LOA by 14.3% ($ 1.65 million). The explosion of rental with option to purchase on the occasion is confirmed (+ 55% in April, + 50% since early 2019). On the new side, the progression is less spectacular (+ 2.9% in 2019), but the car loan and the LOA for a vehicle taken out of the dealership represent almost double in terms of amount (3 billion USD). The LOA’s share here is in the majority (nearly 75% of new car financing), while new car credit lost 1.4% in 2019.

Works and equipment in great shape

Works and equipment in great shape

It is the appropriations allocated which pull the consumer loan up in April (+ 11.8%). In addition to the car, the financing of works and capital goods experienced a good frenzy (+ 19.3%). A phenomenon which is confirmed by sight over the first four months of the year (+ 15.9%), and which is imitated by the loans allocated to the purchase of a vehicle excluding cars (+ 9.9%). This growth contrasts with the gloomy personal loan (-0.5%). The latter is even down 4.1% in 2019. Also revolving credit has been declining since the start of the year (-1.2%), but rebounded in April (+ 3%). A surprise when the last five months were in the negative and confirmed a form of disenchantment for revolving credit.

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