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

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“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.

US Vehicle Finance Industry

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:-

US Vehicle Finance Market

Related Reports:-

Vietnam Auto Finance Market Outlook to 2023 – by Loan Tenure, by Type of Institution (Commercial Banks and Non- Banking Financial Institutions) and by Type of Vehicle (Passenger and Commercial)

Thailand Auto Finance Market Outlook to 2023 – by Loan Tenure, By Commercial Banks, Non- Banking Financial Institutions, Auto OEMs Captives; By New and Used Passenger and Commercial Vehicles

Philippines Auto Finance Market Outlook To 2023 – By Banks And NBFCs Including Captive Units (Auto Loan Portfolio And Motor Cycle Loan Portfolio), By New And Used Motor Vehicles, By Motor Vehicle Financed (Passenger And Commercial Vehicles), By Loan Time Period.

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249

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