rise in cab service financing is driving the Automotive Financing Market in Europe
Technavio analyzes that the Automotive Financing Market in Europe is expected to grow at a CAGR of 4.43% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 6.14 billion.There are various factors that contribute to the growth of the market. The European automotive financing market is experiencing a significant surge in financing for cab services. This trend is driven by the increasing popularity of ride-hailing services and the growing demand for flexible and convenient mobility solutions. As a result, financial institutions are offering specialized financing options to cater to this sector, enabling cab operators to expand their fleets and improve their businesses. This financing boom is set to revolutionize the European transportation landscape.
The European automotive financing market is witnessing a shift towards the used vehicle segment, driven by customers' preference for cost-effective alternatives. This trend is influenced by the declining annual registration fees in certain European countries, which significantly reduce expenses for vehicles that are 3-5 years old. Additionally, the emergence of digital tools, financing options, telematics, digital payment systems, mobile banking, car-sharing, and ride-hailing services further enhances the appeal of used vehicles for price-sensitive consumers. These factors collectively contribute to the growth of the used vehicle financing segment in Europe.
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Automotive Financing Market in Europe Segmentation
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The European automotive financing market is undergoing significant transformation with the rise of electric vehicles and the integration of technology such as captive finance, personalized finance options, cryptocurrency, blockchain, and AI technology. Banks and financial institutions offer digital payment systems, mobile banking, and subscription-based models for new and used passenger cars. Digital Automotive Finance includes loan services, safety systems, leasing suppliers, and car-sharing, ride-hailing, and car rental. OEM warranty programs and car finance are also part of this landscape. Traditional car dealerships are being replaced by virtual dealerships, and car dealership buyback is gaining popularity. Interest rates and digitalization are key factors influencing this market. Credit underwriting and automotive refinancing are also areas of focus.
The European automotive financing market is a segment of the global diversified financial services industry, encompassing companies that offer a range of financial services, including banking, insurance, and capital markets, with a focus on captive automotive finance and personalized finance options for electric vehicles. Technavio's market analysis identifies the key growth drivers for the global diversified financial services market, including the digital transformation that has led to the adoption of advanced technologies such as AI, blockchain, and cryptocurrency in credit underwriting and customer experience enhancement. These innovations are revolutionizing the automotive financing sector, enabling more efficient and customized financing solutions for consumers.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
Technavio Research
Jesse Maida
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