Market Trends of France Auto Loan Industry
Increasing Number of Registered Passenger Cars in France
The rising number of registered passenger cars often correlates with increased demand for auto loans. As more individuals seek to purchase cars, there is a potential surge in the demand for financing options. Lenders in the auto loan market may diversify their loan products to cater to different segments of vehicle buyers. This could include various loan terms, interest rate structures, and special financing programs. The increasing demand for auto loans leads to enhanced partnerships between lenders and dealerships. These collaborations facilitate convenient financing options for vehicle buyers at the point of purchase. Government policies promoting car ownership or incentivizing the purchase of specific types of vehicles (e.g., electric or eco-friendly cars) influence the auto loan market. Lenders may adjust their offerings to align with such policies. The auto loan market may reflect broader trends in consumer credit. Economic conditions and changes in consumer behavior can impact the willingness of individuals to take on auto loans, affecting market dynamics.
Technological Innovation of Electric Cars has Increased Demand for the Auto Financing
The volume of battery electric vehicle sales in France has been steadily increasing to close to a quarter of a million in the last year. The development of electric vehicles is an inevitable trend, and there will be an increasing amount of research on electric vehicles. According to Insideevs news, this year, more than 230k new plug-in electric vehicles have been registered in France. As part of the post-COVID-19 economic recovery plan, the government set up a scheme to support the purchase of less polluting vehicles. This electric car bonus aims to support households by giving them purchasing power and support a sector that has also suffered from the crisis.
