The
report titled “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”
provides a comprehensive analysis of the US vehicle finance market including
market evolution, market overview, market genesis, market size and market
segmentations. Extensive focus has been placed in quantifying the credit
disbursed and auto loans outstanding and number of vehicles financed. The
report covers aspects such as market segmentation (by loan tenure, risk tier, type
of vehicles, new and used vehicles and type of institutions), customer
perspective in the market and snapshot on online lending ecosystem in the US. Competitive
landscape of major lenders including Ally Financial, Bank of America, Capital
One, Wells Fargo, Chase Auto Finance, Toyota Motor Credit, Ford Motor Credit,
American Honda Finance Corporation, GM Financial, Nissan Motor Acceptance,
Credit Acceptance Corporation, Santander Consumer USA and Pentagon Federal
Credit Union. The report also covers future industry analysis (by credit
disbursed and auto loan outstanding), future market segmentation, PESTEL
Analysis, growth opportunities, up-coming business models, government
regulations and analyst recommendations.
US Vehicle
Finance Market Overview and Size
The Vehicle
Finance Market in US witnessed a steady growth during the period 2013-2018,
owing to an increase in new and used vehicle sales over the same period. The
Market is reaching its Maturity Stage with Vehicle sales beginning to follow a
normal growth trends after continued exponential growth over past couple of
years. Trends in the market were largely stimulated by low interest rates in
the economy as well as a rise in retail price of automotives in US. Some
challenges faced during the period in the market were the rising loan default
rates, instable vehicle sales and a pullback on loan issues lead by banks, in
the latter half of the research period.
US Vehicle
Finance Market Segmentation
By New and Used Vehicles: The Vehicle Finance Market in US is segmented into New and
Used Vehicle finance with New Vehicle finance holding a majority share of the
total Credit Disbursed in the market in 2018. The major drivers behind the
growth include rising sales of new and used vehicles as well as the rising
prices of retail models in the market.
By Lender Type: The
primary lending institutions in the US Vehicle Finance market include Banks,
Captive Finance Companies, Credit Unions and Private Finance Companies. Banks
hold a majority share in the market owing to their reliable lending reputation
and digital lending platforms. In Used Vehicle Finance, Banks have captured a
major chunk of the market when measured by Auto Loans Outstanding. However when
it comes to New Vehicle Finance, their dominance is second to Captives. Captives
have huge dealership networks and their high penetration rates enable them to
target a major chunk of the New Vehicle Finance Market.
By Type of Vehicle (Passenger Cars and Light Trucks): Light Trucks accounted for a major share in the number of
vehicles financed in the market, while the share of passenger cars was lower
than that of light trucks. This was due to the high level of sales registered
by Light Trucks.
By Time Period of Loan (Less than 3 years, 3, 4, 5, 6 and
more years) Between New and Used Vehicles: Vehicles are financed for different tenures in the market,
with the share of loans lasting for 6 years the highest. The overall trend in
the market is the lengthening of loan terms with car buyers preferring to make
payments over a longer period of time to distribute their financial burden
evenly over a longer period. Borrowers provide raised interest rates for longer
period loans with lower monthly payments. The trend towards longer loan terms
is evident both in New and Used Vehicle finance with borrowers opting for loan
terms in excess of 5 years.
By Risk Category: Prime loans form a major chunk of the Vehicle Finance Market
in US when measured by Auto Loans Outstanding holding a dominant market share.
Prime loans dominate in both New Vehicle and Used Vehicle Finance. Nonprime and
Subprime loans have shown a rising trend owing to the relaxing of credit
requirements and underwriting standards over the period of 2013-2018 but these
loans have also tarnished the credit portfolio of lenders, registering massive
defaults and delinquency rates on these loans.
Compeititive Landscape in the US Vehicle
Finance Market
The
Competition in the 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.
US Vehicle
Finance Market Future Outlook and Projections
The
US Vehicle Finance market is expected to be positive if there is continuous
need for motor vehicle among 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
Key Topics Covered in the Report:-
Executive
Summary
Research
Methodology
US
Vehicle Finance Market Evolution
US
Vehicle Finance Market Overview and Genesis
US
Vehicle Finance Market Ecosystem, 2018
US
Vehicle Finance Market Value Chain Analysis
US
Vehicle Finance Market Size, 2013-2018
US
Vehicle Finance Market Segmentation, 2013-2018
Major
Trends and Development in US Vehicle Finance Market
Regulatory
Framework in the US Vehicle Finance Market
Snapshot
on Digitization of Vehicle Finance in US
Customer
Perspective in US Vehicle Finance Market
Competitive
Landscape containing Company and Product Profiles in the US Vehicle Finance
Market
US
Vehicle Finance Market Future Outlook and Projections, 2018-2023
Analyst
Recommendations for the US Vehicle Finance Market
For more information on the research report, refer to below
link:-
Related
Reports:-
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