Read the most important results of the study on installment loans by the banking association here.
At the end of 2011, the Gesellschaft für Konsumforschung (GfK) was commissioned by the Association of German Banks to find out how well known various forms of financing are, what German consumers think about them and how they ultimately use them. Here are the most important results of the study.
Car loans continue to lead the way: 13% of new car owners and 8% of used car owners have taken out a loan. Every fourth German household regularly finances not only their car but also their television and furniture. Every second customer who is buying a new car in the next two years can already imagine taking out a loan. The figure for used cars is 46 percent.
Installments are rising: In 2011, the average monthly installment was 287 euros, compared to only 261 euros in 2010. The increase is due in particular to an increase in higher-volume loans from 300 euros.
Web offer little known: Only 16 percent are well to very familiar with installment loans on the Internet, compared to 66 percent for car dealer loans.
Better advisors: 72 percent of loan users felt well or very well informed about the terms and conditions when taking out a loan. In 2010, this figure was only 65 percent.
Residual credit insurance constant: As in the previous year, a quarter of borrowers took out residual credit insurance in 2011, which usually covers a combination of the risks of death, incapacity to work and unemployment.
Financing requirements in retail are growing: for example, the amount for a car rose from 10045 euros in 2009 to 13460 euros in 2011. For furniture and kitchens, it grew from 1610 to1900 euros in the same period. The terms are also tending to become longer.
No credit, no consumption: for more than half of those surveyed (51%), credit was the decisive factor for the purchase.
Peter Wacket, Managing Director of the Association of German Banks, summarizes the results of the study: "Credit is an integral part of everyday consumer life and is expected by many customers in car or department stores." Incidentally, it is used across all income brackets. More than 40 percent of borrowers have a net household income of 2,500 euros per month, and almost one in ten even have more than 4,000 euros at their disposal.
