About Automotive Finance
Auto financing allows people to buy a car with any arrangement other than a full-cash single lump payment. The auto finance landscape is becoming increasingly competitive, with more buyers arriving at showrooms with pre-approved credit from direct lenders. New and used vehicles can be acquired with the help of financing from banks, credit unions, or independent finance companies. The high demand for vehicle replacement in developed countries such as United States, United Kingdom and other and increasing investment in autonomous vehicles. These factors will positively be impacting on Global Automotive Finance Market in upcoming years.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Automotive Finance market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Toyota Motor Credit (United States), GM Financial Inc (United States), Volkswagen Financial Services Inc. (Germany), Hyundai Capital (South Korea), RCI Banque (France), Ford Credit (United States) and Chase Auto Finance (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Ally Financial (United States) and Daimler (Germany).
Segmentation Overview
AMA Research has segmented the market of Global Automotive Finance market by Type (Standard loan, Finance Lease, Novated Lease, Operating Lease, Chattel Mortgage and Commercial Hire Purchase), Application (Residential Use, Commercial Use, Government Use and Others) and Region.
On the basis of geography, the market of Automotive Finance has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Vehicle Type, the sub-segment i.e. Passenger Cars will boost the Automotive Finance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Source Type, the sub-segment i.e. OEMs will boost the Automotive Finance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Purpose Type, the sub-segment i.e. Loan will boost the Automotive Finance market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
High Demand for Electric Vehicles, Regulatory Landscape Shifts, Increased Vendor Integrations and Pressure from Rising Rate
Market Growth Drivers:
Decreasing the Unemployment Rate, Rise in Accessibility to Capital Markets, Increasing Population in Developing Economics Coupled with Growing Disposable Income and Growing Cab Service Financing
Challenges:
Increased in Ride Sharing Business and Saturated Automotive Market in Developed Countries such as United States, United Kingdom, France, Germany, Spain, and Italy
Restraints:
Environmental Concerns and Automotive Eco-Monitoring Regulations Imposed by the Government are Restricting the Use of Mainstream Automobiles
Opportunities:
Mobility as a Service Opens New Auto Finance Opportunities
Market Leaders and their expansionary development strategies
In November 2021, Toyota Motor Credit Corporation signed a letter of intent with Great American Outdoors LLC, the parent company of Bass Pro Shops, Cabela's, and White River Marine Group. Hatteras and others. The agreement expands Toyota's relationship with Bass Pro Shops and Cabela's to include providing financial services for the company's boats, all-terrain vehicle products, and other mobility products.
In June 2019, ICICI Bank collaborated with non-banking financial company IndoStar Capital for vehicle financing for small and medium fleet owners to buy new as well as old commercial vehicles.
Key Target Audience
Independent Finance Companies, Banks, Credit Union, Government Bodies and Departments, Business Consulting Firms and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.