Automotive Finance Market Size, Share | Report 2023-2032
The global automotive finance market size was estimated at around USD 290.03 billion in 2022 and it is projected to hit around USD 521.36 billion by 2032, growing at a CAGR of 6.04% from 2023 to 2032.
Key Pointers
Report Scope of the Automotive Finance Market
| Report Coverage | Details |
| Market Size in 2022 | USD 290.03 billion |
| Revenue Forecast by 2032 | USD 521.36 billion |
| Growth rate from 2023 to 2032 | CAGR of 6.04% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
| Companies Covered | Ally Financial; Bank of America; Capital One; Chase Auto Finance; Daimler Financial Services; Ford Motor Credit Company; GM Financial Inc.; Hitachi Capital; Toyota Financial Services; Volkswagen Financial Services |
The increasing global demand for electric vehicles is one of the major factors, expected to drive market growth. According to the Experian’s State of the Automotive Finance report, electric vehicles comprised 4.56% of new vehicle financing in Q4 2021, up from 2.25% in Q4 2020 and 1.34% in Q4 2019 in the U.S. According to this report, consumers in the U.S. are more likely to purchase new electric vehicles rather than lease them.
The growing importance of captive automotive finance worldwide is creating new opportunities for market growth. Captive finance is a subsidiary of an automaker that provides loans and financial services to the company's customers. The benefits of starting a captive finance company include personalized finance options for the customers, and equipment rental programs, among others. The companies such as Honda Finance, Ford, Infiniti, and Nissan are seeing strong growth in captive finance.
The growing importance of cryptocurrency across the automotive finance industry is expected to drive market growth. Various automotive technology providers are adopting cryptocurrency-based payments to enhance their offerings. For instance, in March 2022, Car Now, an automotive industry’s digital retailing company, announced its partnership with Cion Digital, a blockchain orchestration platform. Through this partnership, Car Now will offer auto dealers compliant and fast crypto payment and lending solutions.
Artificial intelligence technology is increasingly being used in the automotive finance sector, in order to improve the credit underwriting process, analyze the data, accurately predict whether the applicant can turn delinquent, and thus enhance the approval process. Various automotive artificial intelligence technology providers are making efforts to develop AI-enabled lending platforms. For instance, in October 2021, Upstart, a leading AI lending platform, announced the launch of Upstart Auto Retail software. This software includes AI-enabled financing features which enable the lenders to improve their customer experience.
The growing global demand for automotive refinancing is also one of the major factors, creating new opportunities for market growth. The demand for refinancing is growing due to its benefits, such as lower monthly car payments, reduced interest rates, and shortened loan terms. According to the statistics provided by Rate Genius, a fintech company, 16.0% more additional Americans applied to refinance their automotive loans in 2020 as compared to 2019. As compared to 2019, as many as 17.0% of additional borrowers refinanced their car loans successfully in 2020, as compared to 2019.
The outbreak of COVID-19 is anticipated to have an adverse impact on the market. The economic uncertainty has forced car buyers to postpone their purchase of a new vehicle. Despite the slowdown in car sales, auto lenders will have to accommodate an upsurge in servicing activity, such as refinancing and extensions. Auto lenders are adopting digital tools to expedite the service processes, remotely.
Automotive Finance Market Segmentations:
| By Provider Type | By Finance Type | By Purpose Type | By Vehicle Type |
|
Banks OEMs Other Financial Institutions |
Direct Indirect |
Loan Leasing Others |
Commercial Vehicles Passenger Vehicles |
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Automotive Finance Market
5.1. COVID-19 Landscape: Automotive Finance Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Automotive Finance Market, By Provider Type
8.1. Automotive Finance Market, by Provider Type, 2023-2032
8.1.1. Banks
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. OEMs
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Other Financial Institutions
8.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Automotive Finance Market, By Finance Type
9.1. Automotive Finance Market, by Finance Type, 2023-2032
9.1.1. Direct
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Indirect
9.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Automotive Finance Market, By Purpose Type
10.1. Automotive Finance Market, by Purpose Type, 2023-2032
10.1.1. Loan
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Leasing
10.1.2.1. Market Revenue and Forecast (2020-2032)
10.1.3. Others
10.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Automotive Finance Market, By Vehicle Type
11.1. Automotive Finance Market, by Vehicle Type, 2023-2032
11.1.1. Commercial Vehicles
11.1.1.1. Market Revenue and Forecast (2020-2032)
11.1.2. Passenger Vehicles
11.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 12. Global Automotive Finance Market, Regional Estimates and Trend Forecast
12.1. North America
12.1.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.1.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.1.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.1.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.1.5. U.S.
12.1.5.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.1.5.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.1.5.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.1.5.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.1.6. Rest of North America
12.1.6.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.1.6.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.1.6.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.1.6.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.2. Europe
12.2.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.2.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.2.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.2.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.2.5. UK
12.2.5.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.2.5.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.2.5.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.2.5.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.2.6. Germany
12.2.6.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.2.6.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.2.6.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.2.6.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.2.7. France
12.2.7.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.2.7.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.2.7.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.2.7.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.2.8. Rest of Europe
12.2.8.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.2.8.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.2.8.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.2.8.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.3. APAC
12.3.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.3.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.3.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.3.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.3.5. India
12.3.5.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.3.5.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.3.5.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.3.5.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.3.6. China
12.3.6.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.3.6.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.3.6.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.3.6.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.3.7. Japan
12.3.7.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.3.7.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.3.7.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.3.7.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.3.8. Rest of APAC
12.3.8.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.3.8.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.3.8.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.3.8.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.4. MEA
12.4.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.4.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.4.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.4.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.4.5. GCC
12.4.5.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.4.5.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.4.5.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.4.5.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.4.6. North Africa
12.4.6.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.4.6.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.4.6.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.4.6.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.4.7. South Africa
12.4.7.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.4.7.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.4.7.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.4.7.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.4.8. Rest of MEA
12.4.8.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.4.8.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.4.8.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.4.8.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.5. Latin America
12.5.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.5.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.5.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.5.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.5.5. Brazil
12.5.5.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.5.5.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.5.5.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.5.5.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
12.5.6. Rest of LATAM
12.5.6.1. Market Revenue and Forecast, by Provider Type (2020-2032)
12.5.6.2. Market Revenue and Forecast, by Finance Type (2020-2032)
12.5.6.3. Market Revenue and Forecast, by Purpose Type (2020-2032)
12.5.6.4. Market Revenue and Forecast, by Vehicle Type (2020-2032)
Chapter 13. Company Profiles
13.1. Ally Financial
13.1.1. Company Overview
13.1.2. Product Offerings
13.1.3. Financial Performance
13.1.4. Recent Initiatives
13.2. Bank of America
13.2.1. Company Overview
13.2.2. Product Offerings
13.2.3. Financial Performance
13.2.4. Recent Initiatives
13.3. Capital One
13.3.1. Company Overview
13.3.2. Product Offerings
13.3.3. Financial Performance
13.3.4. Recent Initiatives
13.4. Chase Auto Finance
13.4.1. Company Overview
13.4.2. Product Offerings
13.4.3. Financial Performance
13.4.4. Recent Initiatives
13.5. Daimler Financial Services
13.5.1. Company Overview
13.5.2. Product Offerings
13.5.3. Financial Performance
13.5.4. Recent Initiatives
13.6. Ford Motor Credit Company
13.6.1. Company Overview
13.6.2. Product Offerings
13.6.3. Financial Performance
13.6.4. Recent Initiatives
13.7. GM Financial Inc.
13.7.1. Company Overview
13.7.2. Product Offerings
13.7.3. Financial Performance
13.7.4. Recent Initiatives
13.8. Hitachi Capital
13.8.1. Company Overview
13.8.2. Product Offerings
13.8.3. Financial Performance
13.8.4. Recent Initiatives
13.9. Toyota Financial Services
13.9.1. Company Overview
13.9.2. Product Offerings
13.9.3. Financial Performance
13.9.4. Recent Initiatives
13.10. Volkswagen Financial Services
13.10.1. Company Overview
13.10.2. Product Offerings
13.10.3. Financial Performance
13.10.4. Recent Initiatives
Chapter 14. Research Methodology
14.1. Primary Research
14.2. Secondary Research
14.3. Assumptions
Chapter 15. Appendix
15.1. About Us
15.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers