A new study by Report Ocean states that the global car finance market is likely to register a high rise in the years to come. The study is titled “Car Finance Market by Distribution Channel (Banks, OEMs, Credit Unions, and Others), Vehicle Age (New Vehicles and Used Vehicles), Application (Personal and Commercial), and Purpose (Loans and Lease): Global Opportunity Analysis and Industry Forecast, 2020–2027.”
According to the research report, the increasing number of options for vehicle purchase and advanced benefits from online car financing application systems are the key factor behind the growth of the global car finance market. The demand for branded cars continues to surge as the trends and preferences for car purchases have increased tremendously, fueling the market’s growth. However, the rise in debts from borrowers, uncertainty in financial terms, and the increase in alternative solutions to travel by car may limit the market over the next few years.
On the other hand, the rising knowledge about technologies implemented and value added services offered by car finance providers to their customers are likely to boost their demand and, eventually, add to their growth over the forthcoming years, states the research report.
Impact of Covid 19 on Global Car Finance Market
The economic slowdown, caused by the Coronavirus pandemic, has severely impacted the global car financing market. With less money left in their pockets, people are hesitating in purchasing vehicles, which is reflected on the demand for car finance across the world. The decline in the automotive industry is also influencing the market negatively.
Consumers Prefer Banks for Car Finance
In this research report, the car finance market has been analyzed on the basis of the distribution channel, vehicles age, application, purpose, and the region. In terms of the distribution channel, the market has been classified into banks, OEMs, credit unions, and others. Banks have been the preferred choice among consumers for car finance. On the basis of the vehicle age, it has been segmented into new vehicles and used vehicles. Car finance finds more demand in the new vehicle segment than the used vehicle segment.
By the application, it has been segmented into personal vehicles and commercial vehicles. Based on the purpose, it has been bifurcated into loans and lease. Region wise, the report has analyzed the market across North America, Europe, Asia Pacific, and LAMEA.
The key players in the car finance market, profiled in this report, Ally Financial Inc., Bank of America Corporation, Capital One, Daimler AG, Ford Motor Company, General Motors Financial Company, Inc., Hitachi Capital Corporation, JPMorgan Chase & Co., Toyota Financial Services, and Volkswagen Finance Private Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
- Banks have been the preferred choice among consumers for car finance.
- Car finance finds more demand in the new vehicle segment.
The global car finance market is segmented into:
By Distribution Channel
- Credit Unions
By Vehicle Age
- New Vehicles
- Used Vehicles
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Middle East
Companies Mentioned in the Report
- Ally Financial Inc.
- Bank of America Corporation
- Capital One
- Daimler AG
- Ford Motor Company
- General Motors Financial Company, Inc.
- Hitachi Capital Corporation
- JPMorgan Chase & Co.
- Toyota Financial Services
- Volkswagen Finance Private Limited
Company Name: Report Ocean
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