Market Size – USD 270.60 Billion in 2021, Market Growth - CAGR of 6.2%, Market Trends –the increasing demand from electronics industry is widening the scope for Automotive Finance Market.
According to the current analysis of Introspective Market Research, the global Automotive Finance Market was valued at USD 270.60 Billion in 2021 and is expected to reach USD 412.29 Billion by the year 2028, at a CAGR of 6.2%.
Auto financing, often known as automobile finance, car financing, or auto financing, refers to a variety of financial instruments that allow consumers to purchase a car without having to pay in full upfront (outright payment). Car credit, which is commonly provided by a bank or other financial institution, allows customers to pay the dealer or manufacturer even if they do not have the funds, i.e. automobile finance allows a customer to buy a car by borrowing funds to pay the seller. Automobile financing is frequently employed by both individuals and corporations. There is a wide selection of financial options available. Business contract hire is quite popular since it can bring tax and cash flow benefits.
One of the primary growth reasons in the market is the increasing demand for new automobile models and branded cars around the world. As customer preferences and attitudes toward car purchases have shifted dramatically, demand for car financing and loans is likely to expand, maintaining its market dominance. As a result, as demand for automobiles grows, so does the global average price of automobiles. As a result of the significant increase in vehicle prices, consumers are being pushed to migrate from direct purchases to auto or automobile financing in the market. For example, in the United States, the average cost of a new car has risen to $36,718 with interest rates ranging from 6% and 2%, respectively. As a result of these exorbitant prices imposed over the average vehicle price, the automotive finance market is expected to increase at a faster rate over the projection period.
Automotive Finance Market Report Highlight:
- By Provider Type, the Bank segment dominates the Automotive Finance Market over the forecast period. Minimal documentation, as well as the high-reliability features, have contributed to the banks' segment expansion.
- By Finance Type, the Loans segment dominates the Automotive Finance Market. A vehicle loan is a type of financial help provided by banks that makes purchasing a vehicle straightforward.
- By Vehicle Condition, the New segment dominates in the automotive finance market over the forecasted period. Increased disposable income, growing living standards in developing countries, and the upcoming new trend of driverless vehicles will all contribute to increased passenger car sales.
- The Asia Pacific is dominating the Automotive Finance Market and this dominance is expected to remain in the coming years.
- European region showed strong growth in Automotive Finance Market. in the Automotive Finance Market in terms of market size and volume.
Automotive Finance Market Segmentation:
By Provider Type
By Finance Type
By Vehicle Condition
Major Key Players for Automotive Finance Market:
- Ally Financial (U.S)
- Bank of America (U.S)
- Capital One (U.S)
- Chase Auto Finance (U.S)
- Daimler Financial Services (Germany)
- Ford Motor Credit Company (U.S)
- GM Financial Inc. (U.S)
- Hitachi Capital (Japan)
- Toyota Financial Services (Japan)
- Volkswagen Financial Services (Germany)
For this report, Introspective Market Research has segmented the Automotive Finance Market based on region:
Regional Outlook (Revenue in USD Billion; Volume in Units, 2022-2028)
- North America
- The U.S.
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of MEA
- Latin America
- Rest of LATAM