The Car finance is a sum of money borrowed by customers to purchase a car that provides an option to buy the vehicles upfront and pay later, in equated the monthly installments. It is provided by specialist car manufacturers or financing companies. In addition, car finance depends on various factors including credit score, income, and credit history of the borrower. Original equipment manufacturers (captive finance), Banks, financial institution, and credit unions are some major distribution channel that provides car finance solutions.
Based on type, market is segmented as used car and new car. Based on source type, market is segmented as banks, Original Equipment Manufacturer (OEM), financial institutions and credit unions. Based on purpose type, market is segmented as lease and loan. In addition, based on vehicle type, market is segmented as commercial vehicles and passenger cars.
The increase in multiple options for vehicle purchases and gaining advanced benefits from the online car financing application systems are few of the major growth factors in the market. In addition, huge demand for model and branded cars are continue to increase as customer trends & preferences toward the car purchases have increased massively, which fuels the growth of this market. However, instability in financial terms, rise in debts from borrowers and increase in alternative solutions to travel by car are some factors that hamper the market growth.
The Car Finance Industry Research Reports covers the analysis of key stakeholders of the market. Key players profiled in the report include Bank of America Corporation, Ford Motor Company, Ally Financial Inc., Hitachi Capital Corporation, Capital One, Volkswagen Finance Private Limited, Daimler AG, JPMorgan Chase & Co., General Motors Financial Company, Inc. and Toyota Financial Services.
The Future Analysis Car Finance Industry report provides regional analysis of this market. Based on geography, market is segmented as North-America, Asia-Pacific, Europe and rest of the world. North-America is a leading region across the globe in terms of market share owing to low-income households opts for car finance and car buyers in this region. Due to advancement in technologies and emergence of the Fin-tech startups, the U.S. market will become more efficient and competitive. Moreover, growth in developments in financial technology has allowed various improvements for instance quick retrieval of documents, quicker transactions & customized services based on the consumer’s preferences. The Asia Pacific is projected to witness considerable growth due to increase in number of favorable government initiatives, especially in China, India, and Japan for maintain the consumer interest and promote the growth in automotive industry. Moreover, the automotive financing market in this region has become highly competitive with surge in the number of used-car outlets as well as vehicle showrooms. Furthermore, decline in the automotive loan rates in the region is further anticipated to propel regional growth. It is expected that financing towards the new vehicles when expressed by the credit disbursed would maintain to lead the market share during the forecast period whereas; the pre-owned car financing shall enhance due to rise in government initiatives towards the segment.
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Ankur Gupta, Head Marketing & Communications