Automotive Finance Market

Automotive Finance Market

Growth Factors of Automotive Finance Market

The automotive finance market size was valued at USD 277.52 billion in 2023, and the market is now projected to grow from USD 295.58 billion in 2024 to USD 513.19 billion by 2032, exhibiting a CAGR of 7.1% during the forecast period of 2023-2030.

The COVID-19 pandemic significantly affected the automotive finance market growth by troublemaking both automobile income and financing availability. Lockdowns, social distancing measures, and financial uncertainty led to decreased client spending on car purchases. Many dealerships and economic establishments confronted operation challenges, consisting of confined staffing and decreased patron foot traffic. Additionally, with financial downturns and job losses, some purchasers struggled to secure financing or made fewer huge purchases.

Online loan services have appeared as the most disruptive technology in this industry. The automotive finance market share globally has been contributed due to the emergence of online automotive finance applications to propel market growth. The mobile/web-based services offer easy viewing, evaluation, and applying for loan services. The increasing vehicle prices are increasing the demand for these services. Although demand for automotive finance in developing countries is anticipated to emerge, the target market for financing companies.

The global motor industry is witnessing an innovative change because the acceptance of electric vehicles is growing gradually across the world. This modification in market dynamics is creating significant business opportunities for the auto sector finance industry. EVs are expensive commodities thus; the majority of new car buyers opt for loan or leasing services. In addition, consumer interest in EVs for new vehicle purchases has increased as EV manufacturers persist to expand their lineup annually.

Comprehensive Analysis of Automotive Finance Market

The automotive finance market and automotives industry is growing at an exponential rate due to its market segmentation. This market expansion effectively provides a detailed regional assessment considering the dominant supply and demand forces that impact the transportation & logistics industry. These segmentations are methodically segregated by types of provider type, purpose type, vehicle condition, and vehicle type. The provider types include banks, OEM, and others. The purpose type contains loan and leasing. The vehicle condition is new and used. However, the vehicle type is passenger cars and commercial vehicles.

The Europe region is conducive to the global automotive finance market, leading to a recall of USD 104.66 billion owing to the introduction of advanced technologies such as electric vehicles, connected and autonomous cars are impelling market growth.

The top players in the market play a vital role in the automotives industry assuring industrial prospectus growth and setting market standards. These players include, Ally Financial (Michigan, U.S), Bank of America (New York, U.S), Capital One (Virginia, U.S),Chase Auto Finance (California, U.S), Daimler Financial Services (Stuttgart, Germany), Ford Motor Credit Company (Michigan, U.S), GM Financial Inc. (Texas, U.S), Hitachi Capital (Tokyo, Japan), Toyota Financial Services (Aichi, Japan), Volkswagen Financial Services (Brunswick, Germany), these market players provide a level-playing competitive landscape.

In February 2024, According to a recent survey by CULA, Credit Unions (CUs) expressed cautious optimism regarding the 2024 auto finance market, foreseeing a decrease in extended loan terms and a decline in interest rates. As well, the survey shows that the majority of CUs intend to capitalize on the advantages of their relationships with auto dealers by expanding them in 2024.

Segmentation Table

Global Automotive Finance Market Scope

ATTRIBUTE DETAILS

Study Period 2019-2032

Base Year 2023

Estimated Year 2024

Forecast Period 2024-2032

Historical Period 2019-2022

Growth Rate 7.1% from 2024 to 2032

Unit Value (USD billion)

Segmentation By Provider Type

- Bank

- OEMs

- Others

By Purpose Type

- Loan

- Lease

By Vehicle Type

- Passenger Cars

- Commercial Vehicles

By Vehicle Condition

- New

- Used

By Geography

- North America (By Provider Type, By Purpose Type, Vehicle Type and by Vehicle Condition)

• U.S (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)
• Canada (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)
• Mexico (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)

- Europe (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)

• U.K (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)
• Germany (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)
• France (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)
• Rest of Europe (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)

- Asia Pacific (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)

• China (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)
• Japan (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)
• India (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)
• South Korea (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)
• Rest of APAC (By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)

- Rest of the World ( By Provider Type, By Purpose Type, By Vehicle Type and Vehicle Condition)


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