According to Stratistics MRC, the “Global Automotive Finance Market” is accounted for $204.06 billion in 2018 and is expected to reach $404.53 billion by 2027 growing at a CAGR of 7.9% during the forecast period. Some of the key factors propelling the market growth include increasing investments in autonomous vehicles prompt financing from credit unions, dealers, and banks, increase in the use of online services, advancements in blockchain technology, and growing innovation in e-commerce. However, the dependence of vehicle buying on the future outlook of the economy and the practical consumer buying confidence are restraining the market growth.
Request for sample here: “Global Automotive Finance Market”
Automotive financing or auto financing are services that offer financial products and support to further allow people to purchase vehicles without having to make the complete payment in cash. The automotive financing market has already matured in industrialized nations. Such an arrangement includes the borrowing of money from financial institutions such as banks, credit unions, and dealers or other informal money lenders. Auto financing is widely used by both members of the public and businesses, and there are several financial aid services available through them. It is the financial services provider (OEMs, Banks, and Financing Institutions) that allows customers to own a vehicle without paying a lump sum payment to the dealership. However, the customer can borrow the money from a financial service provider and then pay it o in installments. Customer and a financial services provider enter into a contract where customers buy a vehicle, agree to pay the amount financed, plus an interest charge over some time. Financial services provider is either a part of banks or amalgamated with an automobile company.
Opportunity: Increasing investments in autonomous vehicles would provide ample opportunities for the market growth.
The growing investments in autonomous vehicles are positively impacting the global automotive financing market. Autonomous vehicles provide convenience and safety to the driver, which encourages several end-users to invest in R&D activities. The investments in autonomous vehicles require financing from banks, credit unions, and dealers, which in turn, increases the demand for automotive financing as well. Main vehicle manufacturers and tier-1 suppliers across the world are increasing efforts to commercialize autonomous vehicles. The increasing popularity of autonomous vehicles is attracting significant investments even from non-automotive companies such as Apple and Google.
Request for customization here: “Global Automotive Finance Market”
Governments in developed countries such as the US are funding agencies to demeanor research in self-driving cars. With the enlargement of the autonomous car market, the demand for automotive financing investments will increase during the forecast period. Autonomous vehicles enable independent mobility for non-drivers as well as people suffering from certain disabilities. They allow travelers to travel with more comfort and flexibility to read, rest or even work while traveling, thereby increasing their efficiency. They can also reduce the paid driver cost for commercial vehicles and taxis.
Driver: Rise in cab service financing is driving the market growth.
The increase in cab service financing is driving the global automotive financing market. The objective of cab service financing is to create a financing program that offers flexible leases, weekly rentals, and discounts for the purchase of new cars to potential drivers. The increase in cab service financing is leading to the growth of automotive financing, hence driving the global market. Cab service providers are collaborating with financiers and car dealers to offer flexible leases and discounts to potential drivers for the purchase of new cars. For instance, Uber’s vehicle solutions curriculum helps buyers get up to 90% financing for their new car. The program also allows drivers to lease a car of their choice with lease terms up to three years. In both cases, the payments will be automatically deducted from the driver’s earnings. The presence of such financial programs is certainly influencing the growth of the global automotive financing market.
Depending on the vehicle type, passenger vehicles segment is expected to emerge as the significant-growing vehicle type over the forecast period. The growth of the passenger vehicles segment can be attributed to the changing consumer mindset regarding leveraging vehicles and their willingness to opt for loans and vehicle leases in their early working years. Moreover, the rise in the number of new passenger car registrations, the growing number of females driving vehicles, and the emergence of new generation riders are the factors driving the segment growth. The availability of varied repayment options in passenger vehicle loans is expected to create growth opportunities for the segment.
For more information fill in the Inquiry form at: “Global Automotive Finance Market”
By geography, Asia Pacific is expected to witness significant growth during the forecast period, owing to various initiatives undertaken by their respective governments of countries such as China and India towards the development of the automotive industry and an increase in the availability of services to its consumers. Moreover, the automotive financing market in Asia Pacific has become highly competitive with an augment in the number of used-car outlets and vehicle showrooms. In addition, a decline in automotive loan rates in the region is further expected to propel the regional growth.
Some of the key players in automotive finance market include Bank of America Corporation, Ford Credit, Ally Financial Inc, Honda Financial Services, Hitachi Capital Asia Pacific Pte. Ltd., BMW Financial, HSBC Holdings plc, Maruti Finance, HDFC Bank Limited, TATA Motor Finance., ICBC (Industrial and Commercial Bank of India), Volkswagen AG, Bank of China, BNP Paribas SA, Capital One Financial Corporation, Standard Bank Group Ltd, Wells Fargo & Co, Mercedes-Benz Financial Services (Daimler AG), Toyota Financial Services, and Banco Bradesco SA.
Maruti Finance: In Mar, 2020, with an objective to facilitate easy financing for customers, Maruti Suzuki India Limited (MSIL) has partnered with HDB Financial Services Limited (HDBFS), a leading Non-Banking Financial Company (NBFC), to provide customized and attractive car loans for customers. The partnership will enable customized offerings across India including deep geographies. The tie up will facilitate loans for both new and used cars. Maruti Suzuki has a vast network of 3,066 new car retail outlets across 1,953 cities and towns. Maruti Suzuki also has 569 outlets of pre-owned car retail channel True Value in over 280 locations. With this MoU in place, Maruti Suzuki has a retail finance tie-up with 26 banks, 7 NBFCs and 8 Regional rural banks.
Capital One Financial Corporation: In Feb, 2019, Capital One® has launched Business CreditWise(SM), an easy-to-use tool providing unlimited, free access to a company's credit profile. Business CreditWise is available to any U.S. business (not just Capital One customers), and can be accessed at any time without impacting business credit. Business credit is a critical component of a company's ability to secure financing, yet our research shows less than half of business owners have ever viewed their business credit reports. With Business CreditWise, business owners can quickly and easily access their credit, correct mistakes and understand what is impacting their overall credit report, free of charge.
About Stratistics MRC:
Stratistics MRC Pvt Ltd. is a market research firm serving the fortune 500 companies across the world with market intelligence. We offer a wide spectrum of research and consulting services with in-depth knowledge of different industries. We are known for customized research services, consulting services and Full-Time Equivalent (FTE) services in the research world. We explore market trends and draw our insights with valid assessments and analytical views. We use advanced techniques and tools among the quantitative and qualitative methodologies to identify the market trends. Our research reports and publications are routed to help our clients to design their business models and enhance their business growth in the competitive market scenario. We have a strong team with hand-picked consultants including project managers, implementers, industry experts, researchers, research evaluators and analysts with years of experience in delivering the complex projects.
We have a core research team with research analysts across the industry verticals to serve our varied customers such as technology suppliers, manufacturers, distributors, end-users, consulting companies, investment firms and research institutes. We ensure that our research reports, white papers, policy briefs provide result-oriented findings and recommendations. Our research reports help you to make better decisions in building the organization present in a global scenario. Our consultancy services offer you with the highly qualified professional research team to match your research needs. We are in the process of addressing the challenges of our clients and able to deliver the quality outputs to meet their business objectives and goals in a potential way. We invest more in building our teams and enhance our client relationships across the geographies where we work.
Contact:
James Lamb
United States Direct:+1-301-202-5929
Email: sales@strategymrc.com
Corporate Sales Specialist
