Auto Finance Market will reach USD 821.42 billion in 2032. -Ford, Volkswagen, JPMorgan, Daimler, BMW, General Motors, Toyota, Nissan, WFC, Citi, Bank of America, ICBC

The global automotive finance market size was valued at USD 252.39 billion in 2021 and is expected to register a compound annual growth rate (CAGR) of 13.2% from 2022 to 2032. This market will reach USD 821.42 billion in 2032. The increasing global demand for electric vehicles is one of the major factors, expected to drive market growth. According to the Experian's State of the Automotive Finance report, electric vehicles comprised 4.56% of new vehicle financing in Q4 2021, up from 2.25% in Q4 2020 and 1.34% in Q4 2019 in the U.S. According to this report, consumers in the U.S. are more likely to purchase new electric vehicles rather than lease them.

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The growing global demand for automotive refinancing is also one of the major factors, creating new opportunities for market growth. The demand for refinancing is growing due to its benefits, such as lower monthly car payments, reduced interest rates, and shortened loan terms. According to the statistics provided by Rate Genius, a fintech company, 16.0% more additional Americans applied to refinance their automotive loans in 2020 as compared to 2019. As compared to 2019, as many as 17.0% of additional borrowers refinanced their car loans successfully in 2020, as compared to 2019.

COVID-19 Impact Analysis
The outbreak of COVID-19 is anticipated to have an adverse impact on the market. The economic uncertainty has forced car buyers to postpone their purchase of a new vehicle. Despite the slowdown in car sales, auto lenders will have to accommodate an upsurge in servicing activity, such as refinancing and extensions. Auto lenders are adopting digital tools to expedite the service processes, remotely.

The market was studied across External Auto Finance and Internal Auto Finance based on Category. Report provides a basic overview of the industry including definitions, classifications, applications and Auto Finance industry chain structure. Top Companies in this report are: Ford, Volkswagen, JPMorgan, Daimler, BMW, General Motors, Toyota, Nissan, WFC, Citi, Bank of America, ICBC

Purpose Type Insights
The loan segment led the market and accounted for more than 59.0% share of the global revenue in 2021. Loans have been a standard process of purchasing an automobile by most of the global population. As the credit environment started to advance, leasing and finance companies had extra funding sources to make accessible to the consumers. Moreover, banks and credit unions are targeting customers with low-interest rate loans. The automotive loan companies offer customers services such as a wide network of dealerships, dedicated customers support, and 24/7 access to loan accounts. These offered services enable the lending companies to enhance their customer's experience.

The leasing segment is anticipated to register the highest growth over the forecast period. The segment growth can be attributed to the increasing number of leasing providers in emerging economies, such as India, China, and Japan. The leasing services are offered for both new as well as used cars. The growing trend of digitization is making a massive impact in the automotive leasing industry. Moreover, companies in automobile leasing are enhancing consumer experience and leveraging their profit margins by heavily investing in digitization technologies, such as blockchain.

Vehicle Type Insights
The passenger vehicles segment led the market and accounted for more than 62.0% share of the global revenue, in 2021. The segment growth can be attributed to the increasing need for mobility due to the increased distances between work, home, education, leisure, and shopping facilities. The automotive industry is growing due to the constant change in customer needs. The need for innovations in safety systems, infotainment systems, advanced driver-assistance systems, telematics, autonomous vehicles, and in-dash controls is increasing, especially in passenger vehicles.

Key Companies & Market Share Insights
The market is fragmented in nature. The market is in the growth stage, and also the competition is anticipated to intensify over the forecast period. Prominent players are adopting various strategies, such as partnerships, strategic joint ventures, mergers & acquisitions, and geographical expansion, to cement their foothold in the market. The emerging subscription business is altering the market dynamics.

Industry players are focusing on exploring this subscription business model, as consumer interest is very high in purchasing vehicles. The appeal of subscriptions is fueling higher growth rates in the market. The COVID-19 pandemic has augmented the growth of online and digital channels for business-to-consumer purchases. In reply to these trends, OEMs and industry players have started to virtualize their dealerships or agreements and operate remotely. Some of the prominent players in the global automotive finance market include:

Ally Financial

Bank of America

Capital One

Chase Auto Finance

Daimler Financial Services

Ford Motor Credit Company

GM Financial Inc.

Hitachi Capital

Toyota Financial Services

Volkswagen Financial Services

Segmentation

The report offers an in-depth assessment of the Auto Finance market strategies, geographic and business segments of the key players in the market, also provides insights on current and future market trends, prominent regional market analysis and industry chain analysis of the global and regional Auto Finance markets.

Auto Finance Market Segmentation by Type:

OEMs, Banks, Financing Institutions, Other.

Auto Finance Market Segmentation by Application:

Personal Vehicles, Commercial Vehicles

Automotive Finance Market Report Highlights
The banks' segment is expected to witness significant growth over the forecast period as banks offer secure financing to their customers. Banks also offer customers with the facility to apply for preapproval. This facility helps customers in comparing estimated loan offers
Numerous customers across the globe prefer direct auto loans as they can easily access and get loans from credit unions, banks, and other loan lending companies
Customers are focusing on adopting the leasing model as it is a more flexible model in comparison to others for new, shared, and used vehicles that could comprise services such as insurance
The number of passenger vehicles that include pickup trucks and crossovers on the road continues to rise across the globe, thereby creating growth opportunities for the passenger vehicles segment over the forecast period
The presence of many prominent automotive finance providers in the European region and the adoption of innovative tools, such as biometrics, e-contracts, and machine learning, is expected to drive the regional market growth over the forecast period

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Cumulative Impact of COVID-19 on Auto Finance report:

Our ongoing Auto Finance report research amplifies our research framework to ensure the inclusion of underlying COVID-19 issues and potential paths forward. In addition, the updated study provides insights, analysis, estimations, and forecasts, considering the COVID-19 impact on the Auto Finance market.

The Porter Matrix evaluates and categorizes the Auto Finance vendors in the market based on Business Strategy (Industry Coverage, Business Growth, Financial Viability, and Channel Support) and Auto Finance Product Satisfaction (Ease of Use, Product Features, Value for Money, and Customer Support) that aids businesses in better decision making and understanding the competitive landscape.

Auto Finance Market Share Analysis: Knowing Auto Finance's market share offers an idea of the size and competitiveness of the vendors for the base year. It reveals the Auto Finance market characteristics in accumulation, dominance, fragmentation, and amalgamation traits.

The report answers questions such as:

What is the Auto Finance market size and forecast of the Global Market?
What are the inhibiting factors and impact of COVID-19 shaping the Global Auto Finance Market during the forecast period?
Which products/segments/applications/areas to invest in over the forecast period in the Global Auto Finance Market?
What modes and strategic moves are suitable for entering the Global Auto Finance Market?

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