The Association of Financial Companies announces a further increase in the production of consumer credit in the first quarter of 2018. With activity up 3.2%, consumer credit confirms its growth started in 2015. Statistics also reveal the confirmation of new consumer practices in the wake of LOA or rental with option to buy.
Return on the rise for unrestricted personal loan
Personal loans recorded an increase of 1.5 points over the entire 1st quarter of 2018 after a decline in activity over the previous three quarters and an almost stable month of March 2018 (-0.4%). The personal loan alone represents a third of the amount of consumer credit production with 3.4 billion USD committed out of a total of 10 billion USD.
Dazzling emergence of rental with purchase option
The surprise – but is it still one? – of these quarterly statistics lies in the double-digit growth recorded by rental with purchase option (LOA) : + 15.4% over the first three months of 2018 compared to activity in the 1st quarter of 2017. Even if the volume remains low with 1.8 billion USD committed, the jump in production confirms a new consumer purchasing trend. The new car market represents 87.64% of this new form of acquisition, but it is the used car market that creates the event: + 57% of production over the quarter!
Buying used cars a growth factor
The growth in March 2018 and in the 1st quarter more generally compared to the same periods last year is attributable to the used car market. Among conventional consumer loans, second-hand car loans recorded an increase : + 7% in March and + 10% in the quarter with committed amounts of $ 971 billion in the quarter. Taking into account the sudden boom in financing of used vehicles by LOA with + 48.8% March and therefore + 57% over the quarter, we note the enthusiasm of consumers for the occasion.
Other consumer loans down in the 1st quarter
Faced with the significant growth in operations allocated to used cars, consumer loans for new cars look sad: -5.8% in March and -6% in the 1st quarter. A drop to put into perspective thanks to the boom in LOA. The credits allocated to the improvement of housing also recorded a drop in production of 5.5% in March and 2% in the quarter. Revolving loans fell 0.7% over the first three months, impacted by the 2.8% drop in March.