BNP Paribas launches a 10-year LOA offer for low incomes – L’argus PRO

Faced with motorists’ new habits and expectations with regard to mobility, many players in the sector have been pushing for non-binding subscription offers for several months. BNP Paribas Personal Finance has chosen to take the opposite view by developing a lease with option to buy (LOA) offer for up to ten years for the purchase of a new or used car (up to 3 years) within partner dealers. The subsidiary of the BNP Paribas group thus intends to reach out to low-income households and support them in their energy transition. “These drivers are neither customers of banks nor traditional distribution networks and prefer to buy their used car at Le Bon Coin”, raises Christophe Michaëli, head of the mobility department at BNP Paribas Personal Finance. And to illustrate: “They drive a 15-year-old Scénic diesel. They are very happy with it and have no plans to change it. For them, the car is not a luxury but meets a real need for mobility. »

However, many of these households will have to consider buying a new car if they want to be able to continue driving in urban areas with more than 150,000 inhabitants, affected by the implementation of low-emission mobility zones (ZFE-m) from 2024. The 1eh January 2025, only vehicles displaying a Crit’Air 1, 2 or green sticker will be allowed to drive in these areas. According to BNP Paribas Personal Finance, these are almost 50% of French households will have to change cars in the next few years, representing about 20 million vehicles.

READ. ZFE. Loan at rate 0 to change car confirmed, all details

A LOA up to thirteen years for a used vehicle

LOA rental offer with purchase option BNP Paribas Personal Finance
Christophe Michaëli, Head of Automobile Mobility at BNP Paribas Personal Finance

This ecological change is taking place in the context of high inflation, which is particularly affecting the car sector an average price of new cars but also a marked increase in used cars since a year. “These households can not afford to repay 300 to 400 euros a month. That is why we need to provide new solutions to support them.emphasizes Christophe Michaëli. The handles at our disposal to put together a lease offer are not so many: the market prices on which we depend, the tariffs and the duration. And we have chosen to play with time. » BNP Paribas Personal Finance is the first player to offer a LOA offer that extends over such a long period, up to ten years or even thirteen years for the purchase of a 3 year old used vehicle. In the examples presented by the Consumer Finance Specialist (see below), the contribution required at start-up is waived with conversion bonuses and premiums promoted by the point of sale.

BNP Paribas Personal Finance ten-year automotive LOA

Maintenance included in the rent

The rent includes maintenance and warranty (with Icare) of the vehicle during the leasing period. “The interview was not integrated in the beginning. We added it at the last minute because it reassures the customer and improves his property »informs Christophe Michaëli. The cost of the insurance remains the responsibility of the motorist. At the end of the leasing period, the latter can become the owner of the vehicle by paying an amount equal to 1% of the selling price of the vehicle (ie equivalent to rent). He can also leave the contract early by paying compensation “limited”according to BNP Paribas Personal Finance.

A conquest offer for dealers

Our colleagues from the “risk” department were involved in building the offer. The risk level is a little higher for us than on more traditional solutions. But as we remain owners of the vehicle for the next ten years, it turns out to be less important than on conventional credit. “, says the leader. The new LOA formula will be marketed within BNP Paribas Personal Finance’s partner concessions. “We were a little apprehensive about the reception from the distribution networks, which in recent years have become accustomed to marketing short-term solutions. But it turned out to be very positive.says Christophe Michaëli. They understood that this offer constituted an additional business relay and did not compete with the other solutions offered to their traditional customers. » The establishment intends to rely on institutional actors and associations to disseminate its new LOA proposal.

Nowadays, Leasing offers represent 60% of the financing files performed by the subsidiary of the BNP Paribas Group; a share rising to 80% for new cars and 30% for used cars.

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