Automotive Financing Market Size to grow by USD 17.6 billion between 2024-2028
According to a research report “ Automotive Financing Market” by Application (Used vehicle, New vehicle) Type (Passenger vehicle, Commercial vehicle) Geography (APAC, Europe, North America, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 17.6 billion, at a CAGR of 3.52% during the forecast period. The burgeoning demand for taxi services has led to an influx of tech-platforms offering global cab solutions. However, for drivers, the challenge lies in securing the necessary transportation means, often hindered by financial constraints or inadequate credit. To address this issue, some cab service providers have instituted financing programs, featuring flexible leases, weekly rentals, and substantial discounts on new car purchases, enabling potential drivers to overcome financial barriers and seize lucrative opportunities in the cab industry..
Browse market data tables, figures, and in-depth TOC on “Automotive Financing Market” by Application (Used vehicle, New vehicle) Type (Passenger vehicle, Commercial vehicle) Geography (APAC, Europe, North America, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Application, the Used vehicle segment is projected to dominate the market size in 2024
The automotive financing market is a significant sector in the financial services industry, providing consumers with various financing options to purchase or lease vehicles. This market caters to both retail and commercial clients, offering flexible payment plans, competitive interest rates, and customized financing solutions. Key players in this market include banks, captive finance companies, and non-bank financial institutions, who leverage advanced technologies and innovative financing models to cater to evolving customer needs. The market's growth is driven by factors such as increasing vehicle sales, rising disposable income, and government initiatives to promote automobile financing.
By Type, Passenger vehicle segment is expected to hold the largest market size for the year 2024
The automotive financing market is a significant sector within the broader financial services industry. It caters to the credit needs of consumers seeking to purchase or lease new or used vehicles. This market is driven by various factors, including consumer demand, economic conditions, and regulatory environment. Lenders offer various financing options, such as secured and unsecured loans, leases, and balloon payments, to cater to diverse customer requirements. The market is highly competitive, with numerous players vying for market share. Successful players prioritize customer service, flexible financing solutions, and competitive pricing to differentiate themselves.
APAC is forecasted to hold the largest market size by region in 2024
The automotive financing market is a significant sector in the financial services industry, providing loans and leases to enable consumers' vehicle purchases. This market's growth is driven by increasing vehicle sales, consumer creditworthiness, and competitive financing offers. Key players offer various financing solutions, including secured and unsecured loans, leases, and innovative financing structures, catering to diverse customer needs. The market's future prospects are promising, with advancements in digital technologies and regulatory changes shaping its evolution.
The Automotive Financing Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
.
For insights on company offerings- Request a sample report!
Research Analysis Overview
The automotive financing sector is experiencing significant technological advancements, with online and mobile banking, digital payments systems, and blockchain technology leading the charge. These innovations are transforming the way consumers access and manage their funds for auto finance services. The demand for automotive financing continues to grow year-on-year, with commercial vehicles and leasing being popular choices. Credit unions and banks are embracing digital transformation, offering seamless loan applications and approvals through artificial intelligence technology. Upstart, Cion Digital, Car Now, and other fintech companies are disrupting traditional auto finance services with their innovative solutions. The rise of blockchain and cryptocurrency is also making waves in the automotive financing sector, with Eulers Hiload EV leading the way in blockchain-enabled car financing. The integration of these technologies is expected to streamline sales activities, making the process more efficient and accessible for both new and used vehicle buyers. Moreover, the advent of autonomous vehicles is expected to bring about new financing models, such as subscription services and pay-per-mile plans. With technological advancements continuing to shape the automotive financing landscape, it's an exciting time for consumers and industry players alike. Loan-to-value ratios, captive automotive financing, and credit unions are other important aspects of the automotive financing sector that continue to evolve with technological advancements. Stay tuned for more updates on this dynamic industry.
Market Research Overview
The automotive financing market is experiencing significant changes as automotive companies adapt to technological advancements and shifting consumer preferences. Subscription-based models, such as those offered by car rental companies, ride-hailing services like Uber, and car-sharing aggregators, are gaining popularity. Geographical presence is also a key factor, with automotive financing sector's growth influenced by the global automotive industry's expansion. New vehicle segment and used vehicle segment financing are two primary categories. Connected cars and autonomous vehicles require specialized financing processes, while insurance, vehicle maintenance, and lenders play crucial roles in the transaction. Captive finance companies and private counterparts offer trust and transparent financing processes, with interest rates and competition driving the market. Financial institutions, captives, and online sales portals are major players, with mobile/web-based platforms and online loan services offering business opportunities. The adoption of technological advancements like telematics, leasing, and loan services is driving year-on-year growth in the automotive finance sector. The lockdown's impact on sales has led to a demand shock, with vehicle prices and loan-to-value ratios affecting consumer preference. Light commercial vehicles, Pickup trucks, and electric vehicles are emerging categories. Mergers & acquisitions, such as those involving Cion Digital, Car Now, Upstart, and Eulers Hiload EV, are shaping the market. Cryptocurrency and artificial intelligence technology are also influencing the automotive financing sector. Monthly loan payments, passenger vehicles, car financiers, and consumer preference are essential factors to consider. The future of automotive financing is digital, with online/mobile banking, digital payments systems, blockchain, and subscription business models leading the way.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
Safe and Secure SSL Encrypted
One user only.
Quick & easy download option
Unlimited user access (Within your organization).
Complimentary Customization Included
*For Enterprise license, go to checkout page
Get the report (PDF) sent to your email within minutes.
