Increasing consumer aspirations for acquiring a car, inception of non-banking financial companies that provide appealing zero down payment financing plans and low-interest EMIs as well as emergence of digitalization are the leading factors driving the Car Loan Market during the projected period. According to the TechSci Research report, “Car Loan Market–Global Industry Size, Share, Trends, Competition, Opportunity, and Forecast, 2018-2028F,” the global car loan market is expected to grow faster during the forecast period.
The Important Factors of the Car Loan Market
The market is driven by rising consumer preferences, and trends for buying cars. Moreover, there is now a huge global demand for specific brands and models of cars, which is one of the key growth factors in the market. Additionally, a boost in car manufacturers like BMW, Toyota, Volkswagen, and Mercedes is satisfying consumer needs, which supports the expansion of the car loan market. Moreover, the market's main growth drivers are the advanced benefits from online applications for car loans and the availability of a variety of vehicle purchasing options. Additionally, the increase in consumer disposable income causes a huge demand for car sales.
Additionally, due to a growth in the availability of long-duration repayment alternatives by 12 months to 3.5 to 4 years, countries like China, India, Japan, and Australia have a high demand for car loans. As a result, the market is also boosted by the rise in the advantages of car loans and is anticipated to offer the market tremendous prospects in the upcoming years.
The average price of cars has risen globally in accordance with rising car demand. As a result, the enormous increase in car prices is pushing consumers to use car loans instead of making direct purchases. For instance, according to the Bureau of Labor Statistics in the United States, the average price of a new car increased up to USD 48,904 in 2022, from USD 37,876 in 2021 for light commercial vehicles.
The banks are the leading segment of the car loan market and are anticipated to continue to dominate during the forecast period. This is accounted for by the fact that banks retain brand loyalty for their product offerings in the market and allow simpler accessibility of car loan services. Additionally, the emergence of non-banking financial companies offering young people appealing zero down payment loan options and low-interest rate EMIs have enticed them to acquire cars despite having limited financial resources.
Based on the region, Europe dominates the car loan market with the largest share. This emerges from the dominance of companies offering financing services for cars. Additionally, the region's strong advertising sector has raised people's awareness of car loan plans, which has increased demand for car loans in the region.
Browse over XX market data Figures spread through XX pages and an in-depth TOC on the "Car Loan Market"
The car loan market is segmented based on car type, provider type, percentage of amount sanctioned, tenure, region, and competitive landscape. Based on car type, the market is divided into hatchbacks, sedans, SUVs (sports utility cars), MPV (multi-purpose vehicles), and others (racing cars, specialty cars, etc.). Based on the provider type, the market is segmented into banks, NBFCs (non-banking financial services, OEM (original equipment manufacturers), and others (fintech companies). Based percentage of the amount sanctioned the market is segmented into less than 25%, 25-50%, 51-75%, and more than 75%. By tenure, the market is segmented into less than 3 years, 3-5 years, and more than 5 years.
Key market players in the global car loan market include:
- Ally Financial Inc.
- Bank of American Corporation
- Daimler Financial Services
- Capital One Financial Corporation
- Ford Motor Credit Company
- GM Financial Inc.
- Mitsubishi HC Capital UK PLC
- General Motors Financial Company, Inc.
- Toyota Financial Services
- JPMorgan Chase & Co.
Various International and domestic companies are trying to enhance their market reach by increasing their mergers and acquisitions. For instance, in 2021 JP Morgen announced that majority ownership of the Volkswagen payments business will be acquired by J.P. Morgan, as well as J.P. Morgan and Volkswagen Financial Services will keep developing specialized payment solutions for the whole Volkswagen Group in Europe and broaden their reach globally.
Download Free Sample Report
Customers can also request 10% free customization on this report.
“The popularity of the global car loan market is rising with the rising trend of ownership of cars among consumers as well as rising preference towards massive models and branded cars. The relaxation of EMIs and tenure provided by the financier will allow the customer to adopt a car loan which will drive the global car loan market. Moreover, the emergence of digitalization is offering customers an experience which is making hassle-free process of loan and boosting the car loan market across the globe.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
“Car Loan Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F Segmented By Car Type [Hatchback, Sedan, SUV (Sports Utility Car), MPV (Multi-Purpose Vehicle), Others (Racing Cars, Specialty Cars, Etc.)], By Provider Type [Banks, NBFCs (Non-Banking Financial Services, OEM (Original Equipment Manufacturer), Others (Fintech Companies)], By Percentage of Amount Sanctioned [Less than 25%, 25-50%, 51-75%, More than 75%], By Tenure [ Less than 3 Years, 3-5 Years, More than 5 Years], By Region,”, has evaluated the future growth potential of the global car loan market and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities present in the global car loan market.
Mr. Ken Mathews
708 Third Avenue,
New York – 10017
Email: [email protected]
Showing 1 reaction
Sign in with