US Vehicle Finance Market is Expected to Reach a Market Size of Around USD 1366 Billion by 2023: According to a Market Research Report by Ken Research
09 Oct, 2019, 15:00 BST
GURUGRAM, India, Oct. 9, 2019 /PRNewswire/ --
• It is expected that by the year ending 2023, financing towards new vehicles when expressed by credit disbursed would continue to lead the market share. Whereas, pre-owned car financing shall enhance owing to rising government initiatives towards the segment.
• Banks and Captives are expected to continue their dominance in the market in the future, owing to their vastly expanding dealership networks and vast variety of loan products offered.
• It is also expected that the spread of online lending models will continue in the future. Lead Generation, Online Lending, Loan Aggregation and Technology trends such as Blockchain, Artificial Intelligence and Fin-tech are expected to impact and disrupt the traditional indirect lending model in the market.
The report provides a comprehensive analysis of the US vehicle finance market including market evolution, market overview, market genesis, market size and market segmentations. Extensive focus has been placed in quantifying the credit disbursed and auto loans outstanding and number of vehicles financed. The report covers aspects such as market segmentation (by loan tenure, risk tier, type of vehicles, new and used vehicles and type of institutions), customer perspective in the market and snapshot on online lending ecosystem in the US. Competitive landscape of major lenders including Ally Financial, Bank of America, Capital One, Wells Fargo, Chase Auto Finance, Toyota Motor Credit, Ford Motor Credit, American Honda Finance Corporation, GM Financial, Nissan Motor Acceptance, Credit Acceptance Corporation, Santander Consumer USA and Pentagon Federal Credit Union. The report also covers future industry analysis (by credit disbursed and auto loan outstanding), future market segmentation, PESTEL Analysis, growth opportunities, up-coming business models, government regulations and analyst recommendations.
Technological Advancement in the US Financial Sector: Due to advances in technology and emergence of Fin-tech startups, who are leveraging their resources to improve the lending experience for the consumer, the market has become more efficient and competitive. Developments in financial technology has allowed for various improvements such as quick retrieval of documents, quicker transactions and customized services based on the customer's preferences. Motor vehicle financing has become seamless, fast and transparent leading to improved operations.
Changing Mobility Scenario: Consumers in the US are increasingly moving forward to accommodate newer models of mobility and are preferring partial ownership of vehicles instead of full ownership. Leasing and Car Rental are strongly growing operating models in the automobile industry in the US. This perception shift is forcing lenders to adopt new models and incorporate newer products in their portfolio offerings to consumers.
Analysts at Ken Research in their latest publication "US Vehicle Finance Market Outlook to 2023 –By Banks and Non Bank Entities including Captives and Credit Unions and Finance Companies (Auto Loan Portfolio), By New and Used Vehicles, By Type of Vehicle Financed (Passenger Cars and Light Trucks), By Loan Time Period and By Risk Category" believe that the US Vehicle Finance market demand is likely to follow a slight growth trend in the near future due to a forthcoming slowdown in light vehicle sales and a shift towards newer models of mobility such as car sharing and leasing. Some positive factors expected to impact the market, are the influx of digitization based lending models, the spread of customized loan products and a further rise in the penetration rate of vehicle finance. The market is anticipated to register a positive CAGR of ~4% in terms of AUM during the forecasted period 2018-2023.
Key Segments Covered
By New and Used Vehicle
- New Vehicle
- Used Vehicle
By Type of Vehicle
- Passenger Cars
- Light Trucks
By Lender Category
- Banks
- Captives and BHPH
- Credit Unions
- Private Finance Companies
By Risk Category between New and Used Vehicles
- Super Prime
- Prime
- Non-prime
- Sub-prime
- Deep Sub-rime
By Loan Tenure between New and Pre-Owned Motor Vehicles and
- Less than 3 Years
- Three Years
- Four Years
- Five Years
- Six Years
- Seven Years or more
Key Target Audience
- Existing Auto Finance Companies
- Banks
- Captive Finance Companies
- Credit Unions
- Private Finance Companies
- New Market Entrants
- Government Organizations
- Investors
- Automobile Associations
- Automobile OEMs
Time Period Captured in the Report:
- Historical Period: 2013-2018
- Forecast Period: 2018-2023
Key Companies Covered:
- Banks
- Ally Financial
- Wells Fargo
- Bank of America
- Chase Auto Finance
- Capital One
- Captives, Credit Unions and Finance Companies
- Toyota Motor Credit Corporation
- Ford Motor Credit
- Nissan Motor Acceptance Corporation
- GM Financial
- American Honda Motor Corporation
- Credit Acceptance
- Santander Consumer USA
- Pentagon Federal Credit Union
Key Topics Covered in the Report
- Executive Summary
- Research Methodology
- US Vehicle Finance Market Evolution
- US Vehicle Finance Market Overview and Genesis
- US Vehicle Finance Market Ecosystem, 2018
- US Vehicle Finance Market Value Chain Analysis
- US Vehicle Finance Market Size, 2013-2018
- US Vehicle Finance Market Segmentation, 2013-2018
- Major Trends and Development in US Vehicle Finance Market
- Regulatory Framework in the US Vehicle Finance Market
- Snapshot on Digitization of Vehicle Finance in US
- Customer Perspective in US Vehicle Finance Market
- Competitive Landscape containing Company and Product Profiles in the US Vehicle Finance Market
- US Vehicle Finance Market Future Outlook and Projections, 2018-2023
- Analyst Recommendations for the US Vehicle Finance Market
For more information on the market research report, please refer to the below link:
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Vietnam auto finance market has witnessed continuous growth since 2014 and has constituted approximately 6% of the overall South Asian auto finance market in 2018. The market compasses similar trends fairly in-line with domestic vehicle sales market, qualitatively & quantitatively with banks and non-banking financial institutions being the major operating entities in the space. The market is currently in its growth stage.
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Thailand auto finance market played an essential role in the overall GDP contribution in the Thai economy. After witnessing a burst in 2015, the market is currently placed in its recovery phase registering a slow-moving growth rate. Major operations are conducted by three types of entities namely, banks & subsidiaries, captive finances and non bank financial institutes. Numerous new business strategies were adopted by major players including the launch of "Cash Your Car", First Car Buyer Scheme, and Floor Plan Model with competitors indulging in maintaining extensive collaborations with luxury dealers like Volvo for product sales expansion.
Thailand auto finance market on the basis of total credit disbursed has expanded registering a CAGR of close to 4% during 2013-2018. The number of automobiles financed witnessed a CAGR of close to 6% owing to an increase in the household disposable income and more affluent middle class in the economy. Two-wheelers market experienced a growth with the rise in motorcycle demand fueled by Thai farmers. Growing consumer confidence index, constant prime lending rates, growing car sales and evolving used car market have been the major growth factors. In terms of total auto loans outstanding, the market registered a CAGR of almost 5% during the review period.
The report titled provides a comprehensive analysis of Philippines' auto finance market including market evolution, market overview, market genesis, market size and market segmentations. Extensive focus has been placed in quantifying the auto credit disbursed auto loans outstanding and number of vehicles financed. The report covers aspects such as market segmentation (by loan tenure, type of vehicles, new and used cars and type of institutions) and snapshot on general automotive space in Philippines. Comparative landscape of major banks including Metro Bank, BDO, Ps Bank, East West Bank, Philippine National Bank (PNB Saving Bank), Bank of the Philippine Islands, RCBC, May Bank Philippines Incorporated and others as well as the comparative landscape of major NBFCs including the Toyota Financial Services Philippines Corporation (TFSPH), MAFS, Unistar Credit and Finance Corporation, Radio Wealth finance Company, Asia Link Finance Corporation and others have been extensively covered. The report also covers future industry analysis (by credit disbursed and auto loan outstanding), future market segmentation, SWOT analysis, growth opportunities, up-coming business models, government regulations and analyst recommendations.
Philippines auto finance market has been identified in its growth stage. The auto finance market tends to align itself with the domestic market for automobiles. Given its relation with this huge market, the sector naturally plays an important role in the overall growth of the economy. During the last 5 years, the auto finance market has boomed as demand and supply for automotives was growing at double digits year on year. Lenders (supply side entities), in this period have evolved to provide a range of innovative products and services to further improve attraction and penetration of the market. There have been various factors driving the growth of the Philippines auto finance market by value as well as by credit disbursed. Some of these factors are the growing economy of Philippines, increasing motorization rate, increased disposable income leading to an increase in purchase of automobiles and the advent of web aggregators. Along with these factors, an increase in per capita income has led more households to own an automobile in Philippines.
The report provides a comprehensive analysis of the car finance market in Indonesia. The report covers aspects such as the market size of the Indonesia Car Finance market segmentation on the basis of type of car financed, tenure of loan and type of financial institution. The report also covers the competitive landscape, government regulations, customer preferences, and value chain analysis of the Indonesia Car Finance Market. In addition to this, the report also covers company profiles and product portfolio of major players. This report will help industry consultants, car finance providers, potential entrants and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.
Indonesia car finance market is in the growing stage. It is dominated by the unorganized players as they offer simpler documentation and convenient car finance options. The market has witness increasing use of technology such as simulation tools, online application and payment methods and others.
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