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Auto credit: the LOA is driving the consumer credit market up

The consumer credit activity is largely boosted by auto financing in LOA (rental with option to buy), notes the French Association of Financial Companies (Financial Credit Institution).

Consumer credit: stagnant activity

Consumer credit: stagnant activity

In October 2016, the activity of consumer credit stagnated (+ 0.3%) compared to October 2015. “ The market continues to recover and stabilizes at a level of activity still very low, since it is -15.2% lower than the high point reached in September 2008 ”, indicates the Financial Credit Institution.

Conventional funding is in decline:

  • -3.8% for consumption credits for household goods (multimedia, furniture, household appliances, etc.),

  • -2.6% for revolving loans,

  • -22% for appropriations allocated,

  • -1.8% for personal loans.

The LOA is becoming more and more attractive

The LOA is becoming more and more attractive

However, the LOA has made significant progress, compensating for the drop in production of other types of financing. Rental operations with option to purchase have in fact jumped by + 25.7% in one year! Production now represents 505 million USD in October 2016 compared to 407 million USD in October 2015.

New vehicle financing is up + 6.1%. “This increase in October is again explained by the good performance of the LOA”, explains the Financial Credit Institution.

Do you want to change vehicles?

Do you want to change vehicles?

To avoid drawing on your savings, you can use car credit. It can be a personal loan, in this case you do not need to justify your expenditure with the bank, or an assigned credit which is directly linked to the new car. To take advantage of the best car loan rate, carry out the online loan comparison on Best Bank.

Are you tempted by LOA? With this formula, you can choose to rent your vehicle according to a pre-established contract (mileage, maintenance, etc.). Then you can decide to return it at the end of the contract or to buy it back at its residual value.

Find your consumer loan at the best rate, it’s easy and free!

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