Showing posts with label US Auto Finance Industry. Show all posts
Showing posts with label US Auto Finance Industry. Show all posts

Friday, October 11, 2019

US Vehicle Finance Market Research Report And Market Forecast: Ken Research

Competitive Landscape in the US Auto Finance Market
The Competition in the US vehicle finance market is extremely fragmented. The Major lending institution types in the market are Banks, Captives, Private Finance Companies and Credit Unions. Banks hold a majority share in the lending space for New Vehicles, and Captives dominate the Used Vehicle segment.  Some of the leading banking institutions include Ally Financial, Capital One, Bank of America, Wells Fargo and Chase Auto Finance. Stiff competition was observed in the case of Captives including Toyota Motor Credit Corporation, GM Financial, American Honda Finance Corporation, Nissan Motor Acceptance Corporation and Ford Motor Credit Corporation. Credit Unions such as Pentagon Federal Credit Union have been seen to register double digit growth, representing the trend of the rapid growth of credit union. Parameters on the basis of which companies compete in the market include interest rate, digitalization, and ease of transaction, distribution network, service portfolio and others.

Snapshot on Digitization of US Auto Finance
The Digital based Vehicle Finance model looks to increase convenience and reduce the number of stakeholders in the market to provide a streamlined lending experience for the borrower. It relies on the delimiting resource of internet to increase awareness among the end users in the market, which are the consumers. The process today, begins on a web browser window, when the borrower researches potential vehicles, dealers providing the preferred vehicle, financing options and financing outlets. Then Lead Generation kicks in, and allows the dealership to directly contact the customer. Or the borrower can sort out financing of the vehicle before deciding about the purchase, by applying for preapproval online at a lender’s website. All this is done before contacting the dealership or the lender. Once the borrower is in contact with the dealership, the process follows a similar path to the traditional model and ends when the vehicle is delivered. But with the ever increasing level of technology, important aspects such as CRM, Marketing, and Payments are prevalently being integrated digitally. The scope of incorporating digitalization into the vehicle financing process knows no bounds.

The complication of the loan process, by way of the ‘decision fatigue’ caused by increasingly long negotiations at the dealerships and lengthy paperwork, mandated the introduction of digital auto lending Dealerships have an option of either generating their own leads through expanding their marketing capabilities, or reaching out to specialized Lead Generation Companies. Many Auto Lead Generation sites are coming forward to establish connections between prospective customers and automotive dealers.

These lead generation sites operate on the behalf of different auto dealers and gather auto leads qualifying to their specific dealership conditions and get paid either on the basis of total sales conversions made or the total number of leads they generate or a combination of both. By using proven marketing methods, the auto lead generation companies not just generate leads but also maintain them in a database for inquiry purposes. They allow the lead to fill up an online form covering information on the loan amount, desirable car model or making and contact details. This form is then supplied to approaching dealers, in exchange for a lead generation fee. As soon as the automotive lead is bought out from the lead generators, the lenders create a proposal for the borrower based on his or her queries and specifications given in the form.

US Auto Finance market Future Outlook and Projections
The US Vehicle Finance market is expected to be positive if there is a continuous need for motor vehicle among the population. Multiple fin-tech startups have also come up in the country’s financial sector which poses a threat to conventional finance companies and banks. These start ups have developed products to augment the digitalization of the banking sector. This includes digital payments, online lending, online aggregation and remote banking facilities which made customer lending process uncomplicated and simple further facilitating the car finance market in the country. Banks and Captives are expected to continue their leading position in the market due to their vast networks and range of products. In addition to that, the US Vehicle market is likely to witness a decline in auto sales which threatens the growth of number of loans issued in the future.

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
Pentagon Federal Credit Union

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

Thursday, September 19, 2019

US Vehicle Finance Market Research Report And Market Future Outlook: Ken Research


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
Pentagon Federal Credit Union

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

Friday, September 13, 2019

Growth in the US Vehicle Finance Market is driven by the growing urban population of US, rise in the number of vehicles registered, price rise and high penetration rate of new and used vehicles in the country: Ken Research


“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
Pentagon Federal Credit Union

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