The report covers Global Auto Finance Market, Global Auto Finance Demand, Global Hire Purchase Loans Market, Global Vehicle Loan Interest Rate, Global Vehicle Refinanced Market, Global Passenger Vehicle Loan Market, Commercial Vehicle Loan Market, North America auto finance Market, Global Motorcycle Finance Sector, Europe Online Auto Finance Market, Asia Pacific Used Car Finance Sector, Middle East & Africa Auto Finance Market, Number of Car Finance Companies, Number of Used Vehicle Financed Globally, Hire Purchase Loans Industry Revenue, Leading Global Auto Finance Players, Competitors in Global Car Finance Market, Emerging Players in Global Auto Finance Market, Bank of America Auto Finance Revenue, Ford Motor Credit Company Share, GM Auto Loan Revenue Share, Volkswagen Financial Services Auto Finance Share, Mercedes Mobility Hire Market Share.
Gurugram, India, May 09, 2023 (GLOBE NEWSWIRE) — 1. Captive lenders have become a big force in the auto lending arena
The growing importance of captive automotive finance worldwide is creating new opportunities for market growth. Captive finance is a subsidiary of an automaker that provides loans and financial services to the company’s customers. About 28% of auto loans are provided by Captive lenders. The benefits of starting a captive finance company include personalized finance options for the customers, and equipment rental programs, among others. The companies such as Honda Finance, Ford, Infiniti, and Nissan are seeing strong growth in captive finance.
2. “Crypto credit loans”: The new trend in the Auto Finance industry
The growing importance of cryptocurrency across the automotive finance industry is expected to drive market growth. Various automotive technology providers are adopting cryptocurrency-based payments to enhance their offerings. For instance, in March 2022, Car Now, an automotive industry’s digital retailing company, announced its partnership with Cion Digital, a blockchain orchestration platform. Through this partnership, Car Now will offer auto dealers compliant and Crypto credit loans to the buyers.
3. New-age technologies like Artificial intelligence are solving the modern problems of the Auto finance market
Artificial intelligence technology is increasingly being used in the automotive finance sector, in order to improve the credit underwriting process, analyze the data, accurately predict whether the applicant can turn delinquent, and thus enhance the approval process. Various automotive artificial intelligence technology providers are making efforts to develop AI-enabled lending platforms. For instance, in October 2021, Upstart, a leading AI lending platform, announced the launch of Upstart Auto Retail software. This software includes AI-enabled financing features which enable lenders to improve their customer experience.
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4. Data regulations policies by major governments are helping to protect the financial privacy of the auto loan customers
All well-governed financial industries should be able to demonstrate due diligence to ensure regulatory compliance in applicable fields. Organizations are adopting financial consulting software to support clients in financial matters in the field of property and real estate management. For instance, The Australian Prudential Regulation Authority (APRA) is an independent statutory authority that supervises institutions across banking, insurance, and superannuation and promotes financial system stability in Australia. In addition, federal and state governments are improving their track plans for various privacy laws, which are applicable to data that are involved in their operations. For instance, on June 5, 2020, Japan enacted a new set of amendments to its data-privacy law, the Act on the Protection of Personal Information (APPI) Individuals can sue for damages relating to the loss of privacy, which may end up having the biggest financial repercussions for businesses.
By Vehicle financed
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By Distribution channels
Banks & Subsidiaries
By Type of Financing
By purpose type
By Tenure of the loans
5 year and above
Middle East & Africa
For more insights on the market intelligence, refer to below link:-
Global Auto Finance Market
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Singapore Auto Finance Market Outlook to 2025 (Edition II) – Driven by exorbitant Car Prices, Growing Digital Penetration and evolving Vehicle Ownership Characteristics amidst Systemically Regulated Car Ownership Policies by the Government
The Singapore Auto Finance industry is expected to increase at a CAGR of ~11% basis Auto credit disbursed and ~0.4% basis Auto Loan Outstanding during 2020 to 2025. The credit disbursed is expected to rise in Singapore at higher than average CAGR owing to higher number of cars financed in the future. The government of Singapore is working towards expansion of Green Car Sales in the country, which is expected to increase the demand of ‘Green Car Loans’ in the future years. New Business Models such as Shared Ownership Financing may also emerge in the country in the coming years. Lastly, Industry is expected to move towards a digital growth with the expansion of Artificial Intelligence, Machine Learning, Big Data and more to further simplify loan application process.
Philippines Auto Finance Market is Expected to grow at a good CAGR in between 2021 and 2026F, one of the major determinants for the surging growth in coming years is the Increasing Population and growing income levels leading to rise in sales of cars , the rise in Auto Outstanding Loans in Philippines, the increase in Auto Loan Outstanding is expected a high growth rate between 2021F-2026F, High-Mid range car models are expected to witness strong success as the majority of car buyers segment includes the High Income people leading to larger Loan amount per customer, Expectation of high growth in car sales especially in Green cars as the government is building the infrastructure like the charging point at public parks . Higher digitization and usage of Artificial Intelligence and Machine Learning to improve customer convenience. New Business Models such as Subscription Lending, Shared ownership financing are coming into play which will lead the way for high growth rate in the Philippines Auto Finance Market.
Australia Car Finance Market Outlook to 2028F- By Category of Vehicles (Passenger Vehicles, Commercial Vehicles), By Ownership of Vehicles (New Vehicles, Used Vehicles), By Category of Lenders (NBFCs, Universal and Commercial Banks, Captives), By Loan Tenure 12-24 Months, 25-48 Months
According to Ken Research estimates, the Australian car finance market – which grew from approximately ~% in 2018 to approximately ~% in 2023P – is forecasted to grow further into ~% opportunity by 2028F. The Australian car finance market contributed to a global growth rate of ~%. With changing consumer preferences and preferred car models offered by companies, consumers are shifting towards car financing models to maintain their financial stability and own a car that can be easily financed over longer and shorter term EMI. Changing consumer preferences and ease of owning a pre-owned car at a much more affordable price have provided significant traction to the market. Used vehicle dealers and OEMs now offer with better maintenance plans, longer life services and effective discounts which has helped key OEM to engage the consumers attention.
China Car Finance Market Outlook to 2028F- By Category of Vehicles (Passenger Vehicles, Commercial Vehicles), By Ownership of Vehicles (New Vehicles, Used Vehicles), By Category of Lenders (NBFCs, Universal and Commercial Banks, Captives), By Loan Tenure 12-24 Months, 25-48 Months
According to Ken Research estimates, the China car finance market – which grew from approximately ~% in 2018 to approximately ~% in 2023P – is forecasted to grow further into ~% opportunity by 2028F. The China car finance market contributed to a global growth rate of ~%. With changing consumer preferences and preferred car models offered by companies, consumers are shifting towards car financing models to maintain their financial stability and own a car that can be easily financed over longer and shorter term EMI.
Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth
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