How Is The Global Car Finance Market Defined?
Car finance refers to methods and options for funding the purchase or lease of a vehicle, including auto loans, leasing, and dealer financing. It encompasses various arrangements such as personal loans, hire purchase, and secured loans, each with distinct terms and conditions.
Car Finance Global Market Report 2024 provides data on the global car finance market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The car finance market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Car Finance Market Size Expected To Expand, And At What Annual Growth Rate?
The car finance sector has grown steadily, with the market expanding from $276.55 billion in 2023 to $298.38 billion in 2024 at a CAGR of 7.9%. Growth has been driven by regulatory changes, shifting economic conditions, vehicle affordability, changing consumer preferences, and urbanization. The market is projected to grow to $406.25 billion by 2028 at a CAGR of 8%. Factors such as consumer preferences, environmental regulations, demographic trends, global economic conditions, and electric vehicle adoption will support this growth. Key trends include digital transformation, AI and machine learning integration, personalized financing options, and advancements in digital platforms.
What Are The Key Drivers Fueling Growth In The Car Finance Market?
The rising vehicle prices are expected to drive the growth of the car finance market. Vehicle prices are rising due to higher costs of raw materials such as steel and aluminum, as well as general inflation affecting automotive manufacturing and logistics. Car finance solutions, such as loans and leases, enable consumers to manage the increased cost of vehicles by spreading payments over time. In January 2023, JP Morgan reported that US consumers spent an average of $46,437 on a new vehicle, representing a 4.2% increase from the previous year. As vehicle prices continue to rise, the demand for car finance options will grow.
Get Your Free Sample of the Global Car Finance Market Report
What Are The Principal Market Segments In The Global Car Finance Industry?
The car finance market covered in this report is segmented –
1) By Type: Loans, Leases, Other Types
2) By Vehicle Age: New Vehicle, Used Vehicle
3) By Distribution Channel: Banks, Original Equipment Manufacturer (OEMs), Credit Unions, Other Distribution Channels
4) By Application: Personal, Commercial
Which Emerging Market Trends Are Altering The Car Finance Market?
The car finance market is shifting towards digital platforms to streamline the loan application process, offering convenience and transparency for customers. Online car finance platforms allow users to manage loans or leases through a digital interface. For instance, in March 2022, MG Motor India partnered with several banks to launch MG e-Pay, an online car finance platform. Customers can select vehicles, complete booking forms, and secure pre-approved loans from home, enabling seamless financing and vehicle delivery.
What Is The Leading Region In The Car Finance Market?
North America was the largest region in the car finance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the car finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
