What is the Historical Analysis of the Automotive Finance Market Size?
The automotive finance market has seen considerable growth due to a variety of factors.
• In recent times, the size of the automotive finance market has seen robust growth. The market is expected to expand from its 2024 size of $290.06 billion to $314.36 billion in 2025, reflecting a compound annual growth rate (CAGR) of 8.4%. Factors such as customer requirements, modifications in loan practices, the conception of leasing, low interest rates, and economic conditions have contributed to the growth experienced in the historical timeframe.
What Does Future Hold for The Automotive Finance Market Size?
The Automotive Finance market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, it's anticipated that the automotive finance market will witness substantial growth, reaching $440.55 billion by 2029 with a compound annual growth rate (CAGR) of 8.8%.
This predicted growth during the forecast period can be credited to factors such as flexible financing options, strategies for risk management, customer-oriented experiences, tailored financing solutions, and subscription-based models. The expected major trends during this period involve an improved customer experience, partnerships with dealerships, advancements in credit accessibility, elongated loan terms, and changes in regulations.
What Are The Primary Growth Drivers In The Automotive Finance Market?
The rise in the cost of vehicles is predicted to stimulate the expansion of the automobile financing market in the future. The price of a vehicle refers to the sum that a car producer is willing to ask for the creation, manufacture, and introduction of a vehicle into the market. Car financing is the process of buying a car, which is typically more costly than would otherwise be possible. As an illustration, data provided by Kelly Blue Book, a vehicle valuation and information source firm based in the US and owned by Cox Automotive, revealed that average transaction prices for new vehicles have increased by 13.5% from year to year, escalating from $41,534 in May 2021 to $47,148 in May 2022. Trucks observed the most significant gain ($888), reaching an ATP of $56,216. Vans also saw an increase of $726 in May, making their ATP $48,671, while SUVs witnessed a rise of $526, thus their ATP reached $46,073. Consequently, the surge in vehicle prices is fueling the expansion of the car financing market.
What Is The Segmentation Of The Global Automotive Finance Market?
The automotive finance market covered in this report is segmented –
1) By Provider Type: Banks, OEMs, Other Provider Types
2) By Finance Type: Direct Finance, Indirect Finance
3) By Vehicle Type: Passenger Vehicles, Commercial Vehicles, Other Vehicle Types
Subsegments:
1) By Banks: Traditional Banks, Credit Unions, Online Banks
2) By OEMs (Original Equipment Manufacturers): Manufacturer Financing Services, Captive Finance Companies
3) By Other Provider Types: Independent Finance Companies, Peer-To-Peer Lending Platforms, Leasing Companies
Pre-Book The Automotive Finance Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Emerging Trends Are Shaping The Automotive Finance Market Landscape?
Advancements in technology are rapidly becoming a predominant trend in the automotive finance industry. Major industry players are focusing on technological innovation to maintain their competitive edge. For example, Kuwy, the first automotive fintech startup in India and a Volkswagen Finance subsidiary, introduced KUWY-LaaS in September 2022. This is an AI and blockchain-powered platform for online auto sales. The new technology not only renders online auto transactions straightforward and fully transparent but also provides comprehensive information assisting the seller, buyer, and lender in making optimal decisions. Using this technology, customers can select financing options, choose a lender, and get swift approval in an entirely paperless process.
Who Are the Key Players In The Automotive Finance Market?
Major companies operating in the automotive finance market include:
• Ally Financial Inc.
• The Bank of America Corporation
• Capital One Financial Corporation
• Chase Auto Finance
• Daimler Financial Services India Private Limited
• Ford Motor Credit Company
• General Motors Financial Company Inc.
• Hitachi Capital Corporation
• Toyota Financial Services
• Volkswagen Financial Services
• BNP Paribas
• HDFC Bank Limited
• Standard Bank Group Ltd.
• Banco Bradesco SA
• Wells Fargo & Co.
• HSBC Holdings PLC
• Oodle Car Finance Services Limited
• Lendbuzz Inc.
• OTO Capital
• Bajaj Finance Limited
• Three Wheels United
• Moneybarn Limited
• Yixin Group Limited
• Caribou Financial Inc.
• Euler Motors
• Nissan Infiniti Finance
• Honda Motor Co. Ltd.
• American Express Company
• MX Technologies Inc.
What Are The Regional Insights Into The Automotive Finance Market?
Europe was the largest region in the automotive finance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
