Knowledge Centre

France – Asset and Auto Finance Country Survey 2014


16 Oct 2014

The asset finance industry in France is represented by the Association Française des Sociétés Financières (ASF). All French leasing companies are members of the ASF; however, the ASF covers a wider range of finance operations than just leasing, including consumer credit, factoring, house finance, guarantees and investment services firms.

The ASF has recently passed its 30th anniversary, having been established under the regulatory framework of the Banking Act of 24 January 1984. Leasing in France is highly regulated, and membership of the association is necessary to comply with the regulatory environment.

In addition, the vehicle leasing market in France is represented by the Fédération Nationale des Loueurs de Véhicules (FNLV), which was established in 1976 and now has a total membership of 295 companies involved in private and commercial vehicle rental, and fleet leasing.

One of the groups that make up the FNLV is the Syndicat National des Loueurs de Voitures en Longue Durée (SNLVLD), founded in 1978, which represents commercial companies that engage in the long-term rental of passenger cars and commercial vehicles in France. SNLVLD members represent 97% of the sector’s activity.

This Asset Finance International country survey aims to provide a balanced assessment of the equipment and auto finance and leasing market in France.

The French asset finance industry, like the economy, is performing well below expectations. New asset finance business volumes have declined in recent years and are currently no better than stagnant.

However, figures from the leasing association – the ASF – for the first quarter of 2014 show that some sectors are starting to recover, notably hire purchase of equipment and passenger car leasing.

In the auto sector, data provided by the vehicle leasing association – the SNLVLD – show a continuing long-term decline. In the final quarter of 2013, there was growth in both the personal and corporate segments compared with the same period a year earlier, although figures for the full year declined for both segments.