Global Automotive Financing Services Market by Type (Straightforward Car Loan, Hire Purchase, Personal Contract Hire (Car Leasing), Personal Contract Purchase), By Application (Passenger Vehicles, Commercial Vehicles) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast From 2022 To 2030

                                          

                                                                                       
Market Overview:

The global automotive financing services market is expected to grow at a CAGR of 7.5% during the forecast period from 2018 to 2030. The market growth can be attributed to the increasing demand for passenger vehicles and commercial vehicles, and the growing trend of leasing and renting cars instead of purchasing them. The global automotive financing services market is segmented on the basis of type, application, and region. On the basis of type, it is divided into straightforward car loans, hire purchase agreements, personal contract hire (car leasing), and personal contract purchase agreements (PCP). Of these segments, PCP is expected to grow at a higher CAGR during the forecast period owing to its benefits such as lower monthly payments and low initial deposits. On the basis of application, it is segmented into passenger vehicles and commercial vehicles. Passenger vehicle finance dominates this market owing to their high value in comparison with other types of vehicles such as trucks or vans.



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Product Definition:

Financing a car purchase refers to the process of borrowing money in order to buy a vehicle. automotive financing services are companies that provide this service. It is important because it allows people who may not have enough money saved up to buy a car to still be able to do so.

Straightforward Car Loan:

Straightforward car loan is a type of consumer automobile lending where the banks and other financial institutes lend you the money to buy a car with no security requirements or collateral. The main aim of this kind of lending is to make it easier for customers who do not have much credit history and cannot get approved for standard auto loans. Also, it helps in increasing customer engagement by simplifying the application process which eventually leads to faster approval and reduced time taken for processing applications.

Hire Purchase:

Hire purchase is a type of finance agreement between an equipment manufacturer and a financial institution. In this type of agreement, the customer purchases the equipment on credit and makes regular payments without any interest charged for the first year. The customer can make additional payments or buy out the loan at any time during the term.

Application Insights:

The passenger vehicles segment dominated the overall industry in terms of revenue share in 2017. The growth can be attributed to increasing demand for passenger vehicles due to rapid urbanization, which is resulting in an increased number of working class people. Moreover, easy availability of funding and low interest rates are further driving the demand for PCH within this segment.

The commercial vehicle financing services market is expected to witness significant growth over the forecast period owing to rising demand from construction sector across various regions globally. This trend has resulted in increased utilization of LCVs by companies operating within construction industries on a contract hire basis as they offer flexibility and cost-effectiveness along with ease of access to funds at favorable rates. These types also have higher residual values, which makes them suitable for long-term contracts with multiple hires per year, thereby boosting industry growth over the forecast period.

Regional Analysis:

Asia Pacific dominated the global market in 2017 and is expected to continue its dominance over the forecast period. The region has a large presence of local players offering auto finance solutions, which has resulted in high competition. This is also likely to impact the growth negatively during the forecast period as it makes it difficult for new entrants to gain traction in such a saturated market. Moreover, stringent regulations imposed by regulatory bodies such as Monetary Authority of Singapore (MAS) and Financial Conduct Authority (FCA) are also expected to hinder regional growth during the forecast period.

However, with growing awareness among consumers regarding various financial products available for purchase or lease of vehicles, demand from Asia Pacific is anticipated grow at a significant rate over the next eight years owing to increasing penetration rates of automobile loans and leases/finance agreements coupled with low interest rates offered by these services providers on personal loans or car purchases compared with other modes including bank financing or cash transactions.

Growth Factors:

Increasing demand for automobiles: The global automotive industry is expected to grow at a CAGR of 4.5% during the forecast period, owing to the increasing demand for passenger cars and commercial vehicles. This will result in an increase in the financing needs of automotive companies, thereby driving the growth of the automotive financing services market.
Rising disposable income: The rise in disposable income has led to an increase in consumer spending on luxury items such as automobiles. This is further contributing to the growth of the automotive financing services market.
Availability of credit facilities: Automotive financiers are offering easy credit facilities and competitive interest rates, which is encouraging consumers to opt for vehicle finance over outright purchase or leasing options offered by automakers themselves or other financial institutions such as banks and credit unions etcetera .This is boostingthe growthofautomotivefinancing servicesmarket .


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Scope Of The Report
Report Attributes
Report Details
Report Title
Automotive Financing Services Market Research Report
By Type
Straightforward Car Loan, Hire Purchase, Personal Contract Hire (Car Leasing), Personal Contract Purchase
By Application
Passenger Vehicles, Commercial Vehicles
By Companies
Volkswagen, GM, Ford, Toyota, BMW, Aston Martin, Daimler, Nissan, FCA, Citroen, Renault, Honda
Regions Covered
North America, Europe, APAC, Latin America, MEA
Base Year
2021
Historical Year
2019 to 2020 (Data from 2010 can be provided as per availability)
Forecast Year
2030
Number of Pages
232
Number of Tables & Figures
163
Customization Available
Yes, the report can be customized as per your need.

Global Automotive Financing Services Market Report Segments:
The global Automotive Financing Services market is segmented on the basis of:
Types
Straightforward Car Loan, Hire Purchase, Personal Contract Hire (Car Leasing), Personal Contract Purchase
The product segment provides information about the market share of each product and the respective CAGR during the forecast period. It lays out information about the product pricing parameters, trends, and profits that provides in-depth insights of the market. Furthermore, it discusses latest product developments & innovation in the market.
Applications
Passenger Vehicles, Commercial Vehicles
The application segment fragments various applications of the product and provides information on the market share and growth rate of each application segment. It discusses the potential future applications of the products and driving and restraining factors of each application segment.
Some of the companies that are profiled in this report are:
Volkswagen
GM
Ford
Toyota
BMW
Aston Martin
Daimler
Nissan
FCA
Citroen
Renault
Honda



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Highlights of The Automotive Financing Services Market Report:
The market structure and projections for the coming years.
Drivers, restraints, opportunities, and current trends of market.
Historical data and forecast.
Estimations for the forecast period 2030.
Developments and trends in the market.
By Type:
Straightforward Car Loan
Hire Purchase
Personal Contract Hire (Car Leasing)
Personal Contract Purchase
By Application:
Passenger Vehicles
Commercial Vehicles
Market scenario by region, sub-region, and country.
Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Automotive Financing Services Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2030.
Regional Analysis
North America
Europe
Asia Pacific
Middle East & Africa
Latin America
Note: A country of choice can be added in the report at no extra cost. If more than one country needs to be added, the research quote will vary accordingly.
The geographical analysis part of the report provides information about the product sales in terms of volume and revenue in regions. It lays out potential opportunities for the new entrants, emerging players, and major players in the region. The regional analysis is done after considering the socio-economic factors and government regulations of the countries in the regions.
How you may use our products:
Correctly Positioning New Products
Market Entry Strategies
Business Expansion Strategies
Consumer Insights
Understanding Competition Scenario
Product & Brand Management
Channel & Customer Management
Identifying Appropriate Advertising Appeals



8 Reasons to Buy This Report
Includes a Chapter on the Impact of COVID-19 Pandemic On the Market
Report Prepared After Conducting Interviews with Industry Experts & Top Designates of the Companies in the Market
Implemented Robust Methodology to Prepare the Report
Includes Graphs, Statistics, Flowcharts, and Infographics to Save Time
Industry Growth Insights Provides 24/5 Assistance Regarding the Doubts in the Report
Provides Information About the Top-winning Strategies Implemented by Industry Players.
In-depth Insights On the Market Drivers, Restraints, Opportunities, and Threats
Customization of the Report Available

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