Consumer credit is rising in 2017, says the Bank in France. Leasing showed an annual increase of + 33% last December. This form of personal loan has notably benefited from the good health of car sales.
Consumer credit growth accelerated (+ 5.9% in December 2017 after + 4.7% in June), according to figures published by the Bank in France on March 26th. This increase is based on depreciable loans (+ 6.2%) but especially on leases (+ 33.1%) driven by the dynamism of the automotive market, said France Transactions.
Success of leasing in the automobile
The increase in loans to households in France (+ 5.7%) remains ” however lower than that of the euro zone (+ 6.8%), due to a boom in Italy and Spain “. Conventional loans or leases, the number of consumer loans follows that of car loans subscribed. This is particularly the case for leasing, with 12.2 billion euros lent in 2017. It allows the consumer to finance a long-term lease, with option to purchase at the end of the lease period.
Manufacturers have widely offered this product to their customers. This type of credit helps to keep the automotive market in the green. In this area, leasing (long-term lease, without option to buy) is also a great success. The vast majority of credits come in the form of amortizable loans. In December 2017, they accounted for 70% of outstanding consumer loans with 118.6 billion euros distributed.
Disappointed for revolving credit
On the other hand, revolving loans are down over one year (-4.5% in December 2017). They weighed 18.7 billion euros in 2017, for an average annual rate of 8.4%. Banking institutions take market share from specialized establishments. For a revolving credit, banks offer lower average rates (5.5%) than specialized institutions (12.8%).
The French increasingly avoid this product, which often leads the modest French to over-indebtedness. The average interest rate for revolving loans increased in 2017. On the other hand, the average rate of consumer credit fell by -0.5% last year (from 4% in early 2017 to 3.5% in December 2017). The average interest rate of a consumer credit ” remains very determined by the mode of distribution “, so do not hesitate to compare!