Car finance is conveyed by financing companies or specialist car producers. It comprises various financial products such as loans & leases, which allows consumers to obtain a car. Moreover, car finance products & services are commonly distributed through the original equipment manufacturers (OEMs), banks, credit unions, brokers, and several other financial institutions. Furthermore, car or auto financing are services enables borrowers to buy vehicles without having to make the entire payment in cash.
Car Finance Industry Research Reports of Ken Research states that the Car Finance Market in Indonesia observed steady growth during the period of 2013-2018, owing to an augment in utilized Car vehicle sales over the same duration. The market is registered by multi finance corporates that are backed by several Multinational banks catering majorly to the middle-class populace. There is around 200 multi finance corporate around Indonesia (OJK Bank Report).
The global car financing market is principally driven by the increasing consumer aspiration for car ownership. The appearance of non-banking financial companies that offer lucrative zero down payment financing schemes and low interest have EMIs lured the young populace to own car despite less capital at disposal. The Car Finance Market Research Reports on the global car financing market is properly segmented on the basis of service provider, vehicle, sales network, tenure, and region. Passenger vehicles segment is projected to rise at a healthy clip over the review period through 2026.
Although, the effective growth in consumer trends & preferences toward car purchases have augmented tremendously and massive requirement for model & branded cars worldwide has become one of the foremost growth aspects in the market. In addition, augment in international auto manufacturers such as BMW, Toyota, Volkswagen, and Mercedes are meeting consumer demands worldwide, which propels growth of the car finance market. However, augment of car owners that provide rideshare services to consumers as an alternative solution to travel by car limits the market growth.
The Car Finance Market Research Reports aims on growth prospects, restraints, and trends of the car finance market analysis. The study propels Porter’s five forces analysis to understand the impact of several factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of alternatives, and bargaining power of the buyers on the car finance market.
Developing macro economics coupled with augmenting number of first-time car buyers are some foremost trends that have come to the fore in developing economies. To serve this, numerous financial institutions as well as non-banking financial corporates are offering car financing as a foremost business activity. Non-banking financial corporates offer car financing at less stringent loan eligibility criteria and flexible repayment tenure which lures customers for car ownership.
Apart from this, increasing trend of digital underwriting and adoption of operative risk management strategies by car financiers are propelling the car financing market. In addition, aggressive sales strategies implemented by car financiers to stay in business are serving to deliver further boost to this market. Furthermore, differentiated product offerings and subvention-based schemes to be favourable for customers is probable to bode well for car financing market.
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Ankur Gupta, Head Marketing & Communications