Consumer loans: they increased by 5% in 2018
+ 5%: a figure that reflects consumer credit activity in 2018 according to figures from the French Association of Financial Companies. It even reached 42.3 billion USD, closer to the peak in 2008 than the post-crisis trough of 2013.
The yellow vests effect cooled consumer credit at the end of the year
The increase in consumer credit could have been even greater in 2018 , but the month of December slowed down its momentum. A month marked by the movement of yellow vests which paralyzed shops in a strategic period with the approach of the holiday season. This translates into a decline of 4.6% compared to December 2017. The three main victims are the financing of used cars (-10%), personal loans (-6.3%) and revolving loans (-5.8%). Only consumer loans earmarked for home improvement and household goods grew in this complicated month (+ 2.5%).
LOA, big winner of 2018
The volume of consumer loans increased by 2 billion USD in 2018 compared to 2017. And if overall growth is already impressive (+ 5%), that of rental operations with purchase option is double-digit : + 14.7%! The LOA is approaching 20% of consumer loans , thanks in particular to the financing of new cars (7 billion USD), since it represents three-quarters of credit purchases in this area. Moreover, conventional auto credit fell by 1.2% in 2018 . But the LOA for a used vehicle jumped 38% in 2018, to exceed 10% of credit financing of these second-hand models.
Revolving credit falls further
Another lesson of 2018 on the consumer credit front: revolving loans fell below 10 billion USD (-0.5%), while personal loans approached that of 14 billion USD (+ 3.8%). Compared to 2008, the fall in revolving credit is almost 50 % according to the ASF: it represents less than a quarter of the sums borrowed in 2018, against almost 40% ten years earlier.