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

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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:-

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.

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

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