According to a report published Wednesday, the French borrowed less in 2023. Only auto loans, granted to finance the purchase or rental of a car, cushioned this decline.
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The credit market weighed down by the decline in personal loans, this is the assessment drawn up, Wednesday March 6, by the Association of Financial Companies (ASF), which brings together professionals in the sector. Less borrowing to renew household appliances, renovate furniture or redecorate. Only one item cushions the decline: automobiles. Credits granted to finance the purchase or rental of a car (leasing) have been more successful than other consumer goods.
Success of the LOA
The volume of new consumer loans granted in 2023 by banks and other authorized establishments amounts to 49.5 billion euros, down almost 1% compared to 2022. Without car loans (purchases and rentals ), the borrowing market for banks would have fallen by 2.7%. Leasing with purchase option (LOA) is the item that works best, which is growing strongly for the financing of new cars (+10%). In total, in France today, a third (around 30%) of used passenger cars in circulation are financed by LOA.
Other types of credit
Personal loans are down sharply (-23%), which is easily explained during a period where interest rates remain high. High rates that are unfavorable and provide little incentive for households who want to borrow to improve their daily lives and also unprofitable for banks who look twice before lending money to low-income households in a depressed economic context. With cautious households and more selective banks, the debate on purchasing power is far from over.
