The car finance market has seen significant growth, rising from $276.55 billion in 2023 to $298.38 billion in 2024, reflecting a compound annual growth rate (CAGR) of 7.9%. This growth is driven by regulatory changes, economic conditions, increased vehicle affordability, shifts in preferences towards vehicle ownership, and growing urbanization. The market is anticipated to grow to $406.25 billion by 2028, at a CAGR of 8%. Future growth will be influenced by shifts in consumer preferences, environmental regulations, demographic trends, global economic conditions, and the adoption of electric vehicles. Major trends expected in the forecast period include digital transformation, the integration of artificial intelligence, the adoption of digital platforms, machine learning integration, and personalized financing solutions.
Global Car Finance Market Key Driver
An increase in vehicle prices is expected to drive the growth of the car finance market. Rising vehicle prices, influenced by raw material costs, inflation, and manufacturing expenses, are making it necessary for consumers to seek financial assistance to purchase vehicles. Car finance options, including loans and leases, allow consumers to spread vehicle costs over time. For instance, in January 2023, JP Morgan reported that the average expenditure on a new automobile in the U.S. was $46,437, representing a 4.2% annual increase. This rise in vehicle prices is expected to boost the car finance market.
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Global Car Finance Market Segments
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
By Geography:The regions covered in the car finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
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.
Major Car Finance Industry Players
Ford Motor Credit Company LLC, JPMorgan Chase Bank, Bank of America, Wells Fargo Auto, Volkswagen Financial Services AG, BNP Paribas S.A., Capital One Bank, PACCAR Financial Corp., The Bank of Nova Scotia (Scotiabank), General Motors Financial Company Inc., Ally Bank (Ally Financial), Fifth Third Bank, Citizens Financial Group Inc., Santander Consumer USA Holdings Inc., BBVA USA (BBVA), KeyBank National Association (KeyBank), Hyundai Motor Finance Company, Toyota Financial Services, American Honda Finance Corporation (Honda Financial Services), TD Auto Finance LLC, Chrysler Capital, Mercedes-Benz Financial Services USA LLC, Nissan Motor Acceptance Corporation (Nissan Motor Acceptance Company LLC), The Huntington National Bank (Huntington Financial), BMW Financial Services LLC
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Car Finance Market Overview
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 2023 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.
