REX: CGI Finance Still Aims for Car Financing

CGI Finance –a car financing specialist subsidiary of Société Générale– just released their 2018 results.

Their overall financial production amounted to roughly €2.2 billion, including €1,240 million for new cars (+9.9%) and €958 million for used cars (+33.2%).
Compared to 2017, CGI’s overall production increased by 19%.
Results based on financing types:
- Loans for financing specific projects: more than 43% of their production, +24.8%.
- Lease-purchase for new and used cars: more than half of CGI Finance’s production. The market for used cars witnessed the most dynamism: +51% (to €216M) vs 2017.
- Long-term leasing for business: this segment showed less promising results this year (-7.8%).

Become a leading player in the car financing market. Competition has been increasing in this industry and it has become more mature. The figures released by CGI Finance tend to stress their leading position.
This outstanding growth can be accounted for by a certain dynamism in the lease-purchase market, by CGI’s partnerships-based strategy and by the fact that they soon went for a digital approach.
Today, in France, the car financing market accounts for 32% of all consumer credit volumes, Lease-purchase options, because they are successful, also contribute to pulling this industry up.
In 2017, for instance, the market for lease-purchase options jumped by 26% (+250% between 2005 and 2018). Their share in the car financing market reaches 53%.

As application processes are digital CGI saw their volume of processed files (126,792) increase by 19.5% in 2018. This partly accounts for their encouraging results.
By way of winning additional market shares, this banking subsidiary partnered with the French start-up Reezocar in December 2018. This start-up specialises in selling second-hand cars online and to individual customers. Their strategy seems to be paying off.

Category : Alertes quotidiennes