France Car Loan Market Size (2024 - 2029)

The France car loan market is a crucial part of the consumer credit sector, with its market size reflecting the demand for financing new and used vehicles. Car loans in France are predominantly offered by banks, credit unions, and specialized financial institutions, with terms and interest rates varying based on lender and borrower profiles. The market has been influenced by government initiatives promoting low-emission vehicles and has faced challenges due to the COVID-19 pandemic, which impacted loan demand and increased defaults. Despite these challenges, the market is expected to experience growth over the forecast period.

Home Market Analysis Financial Services and Investment Intelligence Research Banking and Non Bank Finance Research France Car Loan Market Market Size

Market Size of France Car Loan Industry

France Car Loan Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 30.41 Billion
Market Size (2029) USD 35.94 Billion
CAGR (2024 - 2029) 3.40 %
Market Concentration High

Major Players

France Car Loan Market Major Players

*Disclaimer: Major Players sorted in no particular order

France Car Loan Market Analysis

The France Car Loan Market size in terms of outstanding loan value is expected to grow from USD 30.41 billion in 2024 to USD 35.94 billion by 2029, at a CAGR of 3.40% during the forecast period (2024-2029).

  • The car loan market in France is a significant segment of the overall consumer credit market. Car loans are widely used by individuals to finance the purchase of a new or used car. In France, car loans are typically offered by banks, credit unions, and specialized financial companies. The loans can be secured or unsecured, with the former requiring collateral such as the car itself. The loan terms can vary depending on the lender and the borrower's creditworthiness but typically range from 12 to 72 months.
  • The interest rates on car loans in France can also vary depending on market conditions, the lender, and the borrower's credit score. In the present year, the average interest rate on a car loan in France was around 2.5% for a new car and 3.5% for a used car, according to the French Banking Federation.
  • The French government has also implemented measures to promote the purchase of low-emission vehicles, such as electric and hybrid cars. These measures include incentives for individuals who purchase such vehicles, as well as regulations limiting the circulation of high-emission vehicles in certain areas.
  • The COVID-19 pandemic had a significant impact on the car loan market in France. The pandemic and associated economic downturn led to a decrease in demand for car loans. Many people lost their jobs or experienced a decline in income, making them less likely to take out a loan to buy a car.
  • The economic impact of the pandemic also led to an increase in loan defaults. Some borrowers who lost their jobs or experienced financial difficulties struggled to keep up with their car loan payments, leading to defaults and repossessions. The pandemic also led to changes in car buying patterns, with more people opting for used cars or delaying purchases altogether. This affected the market for new car loans, in particular.

France Car Loan Industry Segmentation

A car loan, also known as an auto loan or vehicle loan, is a type of financing provided by a financial institution or lender to help individuals purchase a car. 

The France car loan market is segmented by product type (used cars and new cars) and by provider type (banks, non-banking financial services, original equipment manufacturers, and other provider types). 

The report offers the value (USD) for the above segments.

By Product Type
Used Cars (Consumer Use & Business Use)
New Cars (Consumer Use & Business Use)
By Provider Type
Banks
Non-Banking Financial Services
Original Equipment Manufacturers
Other Provider Types (Fintech Companies)
Need A Different Region Or Segment?
Customize Now

France Car Loan Market Size Summary

The car loan market in France is a vital component of the consumer credit sector, facilitating the purchase of both new and used vehicles through loans offered by banks, credit unions, and specialized financial institutions. These loans can be secured or unsecured, with terms varying based on the lender and the borrower's credit profile. The market is influenced by interest rates, which fluctuate according to market conditions and the borrower's credit score. Government initiatives promoting low-emission vehicles, alongside the economic impacts of the COVID-19 pandemic, have shaped consumer behavior and loan demand. The pandemic led to a decline in car loan demand due to job losses and reduced incomes, affecting new car purchases and increasing loan defaults. However, the used car market remains a significant driver, as many consumers opt for more affordable used vehicles, which often require smaller loan amounts and longer repayment terms.

Rising vehicle prices have made car loans more appealing, as consumers find it increasingly challenging to purchase cars outright. This trend has prompted lenders to offer more attractive loan terms, such as longer durations and lower interest rates, to attract borrowers. The competitive landscape is marked by a few dominant players, including Credit Agricole, Societe Generale, and BNP Paribas Personal Finance, while mid-sized and smaller firms like Banque Postale and Credit Mutuel are expanding their market presence through innovation and technology. Government incentives, such as tax credits and subsidies, further enhance the attractiveness of car loans, encouraging consumers to finance their vehicle purchases despite higher prices. Recent partnerships and acquisitions in the sector, such as those involving Mitsubishi Motors and electric vehicle infrastructure, indicate ongoing developments and opportunities within the market.

Explore More

France Car Loan Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Used Cars are Driving the Market

      2. 1.2.2 Increase in Vehicle Price is Driving the Market

    3. 1.3 Market Restraints

      1. 1.3.1 Changing Mobility Trends is Restraining the Market

      2. 1.3.2 Increase in Car Loan Interest Rates is Restraining the Market

    4. 1.4 Market Opportunities

      1. 1.4.1 Collaborations Between Car Manufacturers and Lenders

      2. 1.4.2 Increasing Popularity of Electric Vehicles (EVs)

    5. 1.5 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights of Technology Innovations in the Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 Used Cars (Consumer Use & Business Use)

      2. 2.1.2 New Cars (Consumer Use & Business Use)

    2. 2.2 By Provider Type

      1. 2.2.1 Banks

      2. 2.2.2 Non-Banking Financial Services

      3. 2.2.3 Original Equipment Manufacturers

      4. 2.2.4 Other Provider Types (Fintech Companies)

France Car Loan Market Size FAQs

The France Car Loan Market size is expected to reach USD 30.41 billion in 2024 and grow at a CAGR of 3.40% to reach USD 35.94 billion by 2029.

In 2024, the France Car Loan Market size is expected to reach USD 30.41 billion.

France Car Loan Market Report Snapshots

France Car Loan Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)