Consumer loans: status quo in the first half

First signs of end of cycle? The production of consumer loans fell sharply in June 2019 (-7.4%) according to the French Association of Financial Companies (ASF). Over the whole of the 2nd quarter and the first half, however, growth resisted (+ 0.9% and + 0.7%)… thanks to restricted loans.

June Cooled Consumer Credit Production

June Cooled Consumer Credit Production

The volume of consumer loans fell by 300 million USD in June 2019 compared to the same period the previous year, and this phenomenon affects both conventional loans (-7%) and rentals with option of purchase (-9%). Even the financing of cars does not resist this icy wind: -14.3% for new registrations, while the occasion has tread water (1 million USD less). The production of personal loans suffered particularly (-13.1%), as did loans allocated to the purchase of vehicles such as two-wheelers and boats (-11.8%). Apart from revolving loans which pass between drops (-0.5%), credits dedicated to housing and household goods are up sharply (+ 9.7%). The LOA auto occasion also continued its breakthrough (+ 26.3%).

The first semester delivers its lessons

The first semester delivers its lessons

With the decline in the second quarter and the first half of 2019, we can observe more significant trends. While the overall volume increased slightly, we observe a continuous decline in unrestricted consumer loans (-4.6% in six months), the decline of which was more dramatic in the first quarter (-5.4%) than ‘to the next (-3.9%). For its part, revolving credit resumed in the 2nd quarter (+ 1%) after three complicated first months (-2.5%), for an almost neutral balance sheet at the end of the first half (-0.8% ). The other type of consumer credit in arrears in mid-2019 is the financing of new cars (-0.7%). Above all, the classic car loan experienced a complicated second quarter (-6.7%), after the first three months already in decline (-2.3%).

Used cars run on fuel

Used cars run on fuel

Who are the winners of the first half of 2019? The financing of used vehicles (+ 11.1%) is on the rise as that of new cars (-0.7%) is going through a turbulent zone. And in this context, the LOA for the purchase of a used car continues to glide at high speed (+ 44.7% to exceed 300 million USD), and the loans allocated to works and goods have crossed 1.5 billion USD (+ 15.5%).

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