USD 259.84 billion
Global Car Finance Market Size, Share, Growth Analysis, By Type(Loans, leases), By End user(Individual and commercial buyers) - Industry Forecast 2024-2031
Report ID:
SQMIG40D2011 |
Region:
Global |
Published Date: March, 2024
Pages:
207
|
Tables:
61 |
Figures:
75
Global Car Finance Market Insights
Global Car Finance Market size was valued at USD 259.84 billion in 2022 and is poised to grow from USD 278.81 billion in 2023 to USD 489.90 billion by 2031, at a CAGR of 7.3% during the forecast period (2024-2031).
The global car finance market is a dynamic sector that facilitates vehicle ownership through lending and leasing options. It's influenced by economic trends, interest rates, and consumer preferences. Traditional financing from banks competes with manufacturer-backed schemes.
The rise of online platforms simplifies application processes. Market growth is tied to vehicle sales and access to credit. Inclusive of novelties like electric cars and subscription models, the market's future hinges on sustainable practices, digital advancements, and adaptable strategies to cater to evolving customer demands while managing potential risks associated with lending and market fluctuations.
US Car Finance Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Individual buyers
Fastest Growth
commercial buyers
Growth Rate
7.3% CAGR
Global car finance market by region
Country Share for North America (%)
Global car finance market by end user
Global car finance market by end user
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Global Car Finance Market Segmental Analysis
The global car finance market can be segmented based on type, end-user, and region. In terms of type, it includes loans, leases, and others. End-users comprise individual and commercial buyers. Geographically, the market is divided into North America, Europe, Asia-Pacific, and the rest of the world.
Car Finance Market Analysis By Type
The largest segment in the car finance market historically has been traditional auto loans. These loans have been widely popular due to their familiarity, accessibility, and the option to own the vehicle outright at the end of the loan term. Banks, credit unions, and other financial institutions provide auto loans to consumers for vehicle purchases.
Leasing had been one of the fastest-growing segments in the car finance market. Leasing gained popularity due to its lower monthly payments compared to auto loans, allowing consumers to drive newer vehicles with the latest features. Additionally, changing consumer preferences, a desire for flexibility, and a preference for access over ownership contributed to the growth of the leasing segment.
Car Finance Market Analysis By End-User
The individual consumer segment remains the largest and most well-established segment in the car finance market. People around the world continue to rely on financing options to purchase vehicles for personal use. This segment is driven by factors such as increasing vehicle prices, desire for newer models, and the convenience of spreading the cost over time.
The digitization of financial services has led to the growth of online platforms that streamline the car financing process. These platforms offer convenience, transparency, and access to multiple lenders, which could lead to increased adoption. As the automotive industry shifts toward sustainable practices, financing options for electric and hybrid vehicles are likely to experience growth. Governments and incentives promoting electric vehicle adoption can further boost this segment.
Global car finance market by end user, 2023 (%)
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Global Car Finance Market Regional Insights
Historically, North America and Europe have been among the largest car finance markets due to their well-established automotive industries, relatively high incomes, and availability of financing options. However, the rapid growth of the Chinese car market has been shifting the balance, making Asia-Pacific a contender for the largest market.
China's car finance market has experienced exponential growth in recent years. The rising middle class, urbanization, and increasing disposable income have led to a surge in car ownership. As more consumers seek financing options, the Chinese market has seen innovation in terms of digital platforms and fintech solutions to cater to this demand.
Global car finance market by Region, 2024-2031
- Largest
- Fastest
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Global Car Finance Market Dynamics
Car Finance Market Drivers
Increasing Demand for Numerous Payment Options
- The global car finance market is driven by increasing consumer demand for affordable payment options, low-interest rates, and convenient access to vehicles. Technological advancements in digital lending and the rise of flexible lease and subscription models further stimulate market growth.
Car Finance Market Restraints
Economic Uncertainty
- The global car finance market faces challenges due to economic uncertainty, fluctuating interest rates, and potential credit risks. Regulatory changes, environmental concerns, and shifts towards shared mobility could also impact the market by altering consumer preferences and the traditional ownership model.
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Global Car Finance Market Competitive Landscape
The global car finance market features intense competition among major players like Wells Fargo, Toyota Financial Services, Ally Financial, and Ford Credit. These key players leverage their vast networks, robust financial solutions, and customer-centric approaches to capture a significant market share. Additionally, emerging fintech firms such as Carvana and Fair disrupt the traditional market with innovative online platforms and flexible leasing options. The competition is driven by factors like interest rates, loan terms, digital advancements, and customer convenience, compelling companies to constantly adapt and enhance their offerings to attract and retain customers in this dynamic landscape.
Car Finance Market Top Player’s Company Profiles
- Ford Credit (United States)
- Toyota Financial Services (Japan)
- BMW Financial Services (Germany)
- Ally Financial (United States)
- Volkswagen Financial Services (Germany)
- Honda Financial Services (Japan)
- General Motors Financial (United States)
- Santander Consumer USA (United States)
- Nissan Motor Acceptance Corporation (United States)
- Mercedes-Benz Financial Services (Germany)
- Hyundai Motor Finance (South Korea)
- JPMorgan Chase & Co. (United States)
- Wells Fargo Auto (United States)
- Capital One Auto Finance (United States)
- BNP Paribas (France)
- PACCAR Financial Corp (United States)
- Fiat Chrysler Automobiles Capital (United Kingdom)
- Mitsubishi Motors Credit of America (United States)
- Scotiabank (Canada)
- Citizens One Auto Finance (United States)
Car Finance Market Recent Developments
-
In March 2024, Mitsubishi partnered with Santabder Consumer USA on an online tool allowing shoppers to pre-qualify for loans and filter dealer inventory to the vehicles the consumer can afford on those approved terms.
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In February 2024, Rupyy, the digital lending and used car financing platform of CarDekho Group, announced that it has plans to expand into the used commercial vehicles financing segment to boost its market share in FY25.
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In February 2024, consumer champion Martin Lewis launched a free tool for consumers to use in logging a complaint about discretionary commission agreements (DCAs) in their car loans.
Global Car Finance Key Market Trends
- The global car finance market is witnessing sustained growth driven by increasing consumer demand for vehicles and convenient payment options. Key trends include a shift towards online application processes, rising popularity of leasing due to lower upfront costs, and innovative financing models like subscription services. Additionally, advancements in technology are enabling personalized financial solutions and enhanced customer experiences. However, potential challenges include regulatory changes impacting lending practices and the need for robust cybersecurity measures. Overall, the market is characterized by evolving customer preferences, digitalization, and the continual adaptation of lenders to meet changing automotive financing needs.
Global Car Finance Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Product types team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analysis, the global car finance market is anticipated to witness continued growth, driven by factors such as rising vehicle ownership, increasing demand for flexible payment options, and technological advancements in the lending process. The integration of digital platforms, data analytics, and automation is expected to streamline loan approval processes, enhancing customer experience. However, evolving consumer preferences, economic fluctuations, and regulatory changes could impact market dynamics. Lenders that adapt to changing trends and prioritize transparency, affordability, and accessibility are likely to seize opportunities and navigate challenges in this evolving landscape, ensuring a promising future for the car finance market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 259.84 billion |
| Market size value in 2031 | USD 489.90 billion |
| Growth Rate | 7.3% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Car Finance Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Car Finance Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Car Finance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Car Finance Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Car Finance Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Car Finance Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Car Finance Market Report Snapshots
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