“The stature of primary lending institution for vehicle
finance in US is shifting from Banks to non-bank lenders such as Captives and
Credit Unions.”
Analysts
at Ken Research in their
latest publication “US Vehicle Finance Market Outlook to 2023 –By Banks
and Non Bank Entities including Captives and Credit Unions and Finance
Companies (Auto Loan Portfolio), By New and Used Vehicles, By Type of Vehicle
Financed (Passenger Cars and Light Trucks), By Loan Time Period and By Risk
Category”
believe that the US Vehicle Finance market demand is likely to follow a stable trend
in the near future due to a forthcoming decline in light vehicle sales and a
shift towards newer models of mobility such as car sharing and leasing. Some
positive factors expected to impact the market, are the influx of digitization
based lending models, the spread of customized loan products and a further rise
in the penetration rate of vehicle finance. The market is anticipated to register
a positive CAGR of ~4% in terms of AUM during the forecasted period 2018-2023.
Market on Brink of Maturity: The US Vehicle Finance Market is one of the most highly
developed and advanced vehicle finance market in the world and is slowly
reaching its point of maturity after a period of sustained and continued growth. The country has one of the highest motorization
rate of around 831 vehicles per 1,000 people, and this number has constantly
contributed to the growth of vehicle finance in US.
Simplification of Lending Process: With Indirect Lending gaining precedence over Direct Lending,
the loan process doesn’t involve communication between the Credit Institution
and the Consumer for discussing loan terms and payments. With flexible payment
options being introduced, the spotlight has shifted from affordability to
convenience. Borrowers are now looking for flexibility in loan terms as well as
refinancing options if the need arises. Lenders have been introducing
customized products, to cater to needs of different consumer profiles and
Online Lending Models have simplified and improved the ease with which
borrowers can compare and avail financing for their vehicle.
Protectionist Measures might pose a Threat to Growth: President Trump imposed a number of tariffs on steel and
aluminum, two major components of the automobile industry, thus threatening the
sales of automobiles. The major brunt of this has been born by foreign OEMs who
now face increased production costs and declining margin. Auto lenders are also
faced with the problem of reducing margins and rising costs per customer
acquisition, and hence are forced to pass on the final burden to the consumer.
Key Segments Covered:-
By New and Used Vehicle
New
Vehicle
Used
Vehicle
By Type Vehicle
Passenger
Cars
Light
Trucks
By Lender Category
Banks
Captives
and BHPH
Credit
Unions
Private
Finance Companies
By Risk Category between New and Used Vehicles
Super
Prime
Prime
Non-prime
Sub-prime
Deep
Sub-rime
By Loan Tenure between New and Pre-Owned Motor Vehicles
Less
than 3 Years
Three
Years
Four
Years
Five
Years
Six
Years
Seven
Years or more
Key Target Audience:-
Existing Auto Finance Companies
Banks
Captive Finance Companies
Credit Unions
Private Finance Companies
New Market Entrants
Government Organizations
Investors
Automobile Associations
Automobile OEMs
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2018-2023
Key Companies Covered:-
Banks
Ally
Financial
Wells
Fargo
Bank
of America
Chase
Auto Finance
Capital
One
Captives, Credit Unions
and Finance Companies
Toyota
Motor Credit Corporation
Ford
Motor Credit
Nissan
Motor Acceptance Corporation
GM
Financial
American
Honda Motor Corporation
Credit
Acceptance
Santander
Consumer USA
Key Topics Covered in the Report:-
US
Vehicle Finance Industry
US
Vehicle Finance Market Revenue
US
Car Finance Market
US
Auto Finance Market
Used
Vehicle Finance Market US
Online
Auto Lending Market US
Number
of Cars Financed In US
US
Vehicle Finance Competition
Passenger
Cars Loan US
RouteOne
Auto Loan Aggregators US
Average
Car Loan Amount In US
Auto
Loan Outstanding US
Sales
of Light Vehicle in Million US
Auto
Leasing Market US
Captive
Finance Companies US
For more information on the research report, refer to below
link:-
Related
Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
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