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
By Type Vehicle
By Lender Category
Captives and BHPH
Private Finance Companies
By Risk Category between New and Used Vehicles
By Loan Tenure between New and Pre-Owned Motor Vehicles
Less than 3 Years
Seven Years or more
Key Target Audience:-
Existing Auto Finance Companies
Captive Finance Companies
Private Finance Companies
New Market Entrants
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2018-2023
Key Companies Covered:-
Bank of America
Chase Auto Finance
Captives, Credit Unions and Finance Companies
Toyota Motor Credit Corporation
Ford Motor Credit
Nissan Motor Acceptance Corporation
American Honda Motor Corporation
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:-
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.
Ankur Gupta, Head Marketing & Communications