The global Car Finance market size was accounted at 1,270.7 USD billion in 2019 and is projected to grow 1,334.3 USD billion by 2026, growing at a CAGR of 12.3% from 2021 to 2026.
Amounts lent by buyers to buy a vehicle are referred to as car or automobile financing. It allows customers to purchase vehicles in advance and pay for them later in equal monthly installments. Furthermore, car financing is dependent on a variety of variables, including the borrower's salary, credit score, and credit history. Banks, original equipment manufacturers (captive finance), financial institutions, and credit unions are only a few of the big car finance distribution networks.
Some of the main growth drivers in the industry are the increase in various options for vehicle purchases and the ability to reap advanced benefits from online car financing application systems. Furthermore, huge demand for model and branded cars is continuing to rise as customer tastes and trends toward car purchases have shifted dramatically, fueling market growth. Car finance companies, on the other hand, use technology to deliver value-added services to their customers. Customers from major emerging and established economies prefer approved financial institutions for car financing to eliminate any risk factor or inconsistency in the transaction process, so developing economies present substantial opportunities for car finance providers to expand their company.
The Car Finance Market is segmented by Product Type (OEMs, Banks, Financing institutions), by Application (Personal Vehicles, Commercial Vehicles). The market is further analyzed on the basis of regional analysis and divided into major regions like North-America, Latin America, Asia-Pacific, Europe and MEA.
Further Key Findings From The Report Suggest
- As a result of increasing vehicle ownership, the Asia Pacific region is expected to expand quickly. When buying large-ticket products, consumers in the region's emerging economies are increasingly opting for car financing.
- The huge demand for new car models and branded cars around the world is one of the industry's main growth drivers.
- Customers are being forced to switch from direct sales to auto or car finance in the industry due to the rapid rise in vehicle prices.
Key Participants like Ford Motor Credit, Toyota Financial Services, Ally Financial, BNP Paribas, Capital One, HSBC, Hitachi Capital Asia Pacific, Standard Bank, Ally Financial, Bank of America.
For this report, Introspective Market Research have segmented the Car Finance market on the basis of Region:
Regional Outlook (Revenue in USD Million; Volume in Units, 2019-2026)
- North America
- 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