How
US Vehicle Finance Market is Positioned?
US
Vehicle Finance Market has been identified as in its late growth
stage. During the last 5 years, the auto finance market has risen as demand and
supply for automotives was growing at a decent rate year on year. Lenders
(supply side entities), in this period have evolved to provide a range of
innovative products and services to further improve attraction and penetration
of the market. Auto finance gained dominance as people started accepting loans
as a way of buying their cars majorly because of interest rates decline,
innovative finance products by lending institutions and ease of getting a loan.
The majority of the expansion in auto finance sales in these years came from
financial institutes such as banks and credit unions. Online Lending entities
such as Lead Generation Companies, Online Lenders and Aggregators also started
gaining prominence.
The vehicle finance market has increased to approximately USD ~
billion in 2018 from USD ~ billion in 2013 registering a CAGR of ~% during the
same period. The credit disbursed in the US Vehicle Finance Market has
increased from USD ~ billion in 2013 to USD ~ billion in 2018. The outstanding
auto loan increased from USD ~ billion in 2013 to USD ~ billion in 2018. The
number of vehicles financed increased from ~ in 2013 to ~ in 2018. There have
been various factors responsible for the growth. One of the major factors has
been the growing level of sales of light vehicles in US along with a vast array
of financing options being offered by lenders. Moreover, convenience in lending
is being improved as online lending ecosystems contribute to the rising total
addressable market in vehicle finance and lenders offer highly customized
products catered to the borrower’s needs.
US Auto Finance Market
Segmentation
By New and
Used Vehicle: In US, auto loan is disbursed for both new and
used vehicles. Credit Disbursed for New Vehicle finance was observed to
dominate the market during 2018. New Vehicle Finance enjoy a majority share in
the market owing to the advantages that come handy with the new vehicles
that includes higher resale value and better financing schemes. Used vehicles
capture a comparatively lower share in the market.
By Type of Vehicle (Passenger
Cars and Light Trucks): Loan financing provided for Light Trucks established
itself as the market leader in the US vehicle finance market during the year
2018, owing to the high sales volume of light trucks and the preference of
consumers towards owning spacious vehicles.
By Lender Category (Banks,
Captives, Credit unions and Finance Companies): Banks and Captives dominate
the majority of the vehicle lending in the market owing to their huge network
as well as financial resources that allow them to charge subsidized interest
rates. Credit Unions are rapidly growing to establish a niche and major
presence in the market.
By Risk
Category (Super-prime, Prime, Nonprime, Subprime and Deep-Subprime between New
and Used Vehicles): The risk category of borrowers is
determined by their credit history and past borrowings. Subprime loans were
increasing at a decent pace owing to the lowering of credit requirements by
lenders and lax underwriting standards.
By Loan
Tenure (Less than 3 years, 3, 4, 5, 6, and 7 or more years) Between New and Used Vehicles: The
loan tenure selected by the customer depends on factors such as the price of
the car, income level of the customer, flexible scheme options and other social
factors such as family size and life style of the individual. The maximum
tenure allotted for a car loan by both banks and private finance companies is eight
years for new vehicle. It has been observed that, people opting for six year
loan tenure dominated the US vehicle finance market in 2018.
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 Analysis
US
Vehicle Finance Market Shares
US
Vehicle Finance Market Growth
US
Car Finance Market
US
Auto Finance Market
US
Auto Finance Industry
Used
Vehicle Finance Market US
Online
Auto Lending Market US
US
Auto Loan Market Size
Number
of Cars Financed In US
Auto
Loan Disbursed US
Passenger
Cars Loan US
Auto
Leasing Market 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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