Increased demand for passenger cars from the middle income customer segment, the rising demand for commercial cars from the car rental and leasing market coupled with the increasing demand for used cars have contributed to the growth of car finance market in Saudi Arabia.
The report titled “Saudi Arabia Car Finance Market Outlook to 2021– Rising Used Car Demand and Increasing Focus of Banks on Consumer Finance to Stabilize Growth” by Ken Research suggested a positive CAGR in terms of credit disbursed in car finance market in the next 5 years till 2021.
Middle East is the one of the most lucrative regions for automotive industry and Saudi Arabia is the largest importer of automotive parts in Middle East and is the largest automotive market for both new and used cars in GCC. In the recent past, the Kingdom’s automotive market have developed at a robust pace owing to the strength of the Saudi Arabian economy, favorable financing options, low gasoline prices, high private consumption levels and growing population. Though the use of cars has a great significance in the Kingdom, dependence on a financing option to fund the purchase of the car had gained less attraction among the public. Moreover, the financial institutions have given less stress on the car financing products. The Saudis always preferred buying a through self-financing instead of depending on an external financing option. The market is dominated by banks that held a share of more than half in 2016. The market has been displaying a growth trend until 2015 supported by factors increased demand for new passenger and commercial cars, enormous growth of car rental and leasing sector, demand for low priced cars from the middle income customer segment and other related factors. There was a sudden fall in the market in 2016 that resulted out of the oil shock faced by the Kingdom. The prices of new cars have increased, leading to a fall in the demand for new cars.
The banks and private finance companies in the Kingdom are in a continuous strive to deepen the penetration of car finance in the Kingdom in the coming years, through the introduction of various promotional activities, lowering interest rates, offers and packaged deals and other perks.
Key Topics Covered in the Report:
New and Used Car Financing in Saudi Arabia
Interest Rate Car Loan in Saudi Arabia
Future Strategies Saudi Arabia Car Loan
Car Loan Market Competition Saudi Arabia
Passenger and Commercial Vehicles Sales in Saudi Arabia
Car Loans industry in Saudi Arabia
Auto & Car Loans in Saudi Arabia
Vehicle Financing in Saudi Arabia
Used Car Financing in Saudi Arabia
Saudi Arabia Car Loan Brand New Market
Used Car Sales in Saudi Arabia
Car Loans Saudi Arabia Top 5 Banks
Car Financing Option in Saudi Arabia
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Ankur Gupta, Head Marketing & Communications