Europe to Dominate the Car Loan Market During the Forecast Period
Increasing consumer
aspirations for acquiring a car, inception of non-banking financial companies
that provide appealing zero down payment financing plans and low-interest EMIs
as well as emergence of digitalization are the leading factors driving the Car
Loan Market during the projected period.
According to TechSci Research report, “Car Loan Market–Global Industry
Size, Share, Trends, Competition, Opportunity, and Forecast, 2018-2028F,” the global car loan market is expected to
grow faster during the forecast period. The market is driven by rising consumer
preferences, and trends for buying cars. Moreover, there is now a huge global
demand for specific brands and models of cars, which is one of the key growth
factors in the market. Additionally, a boost in car manufacturers like BMW,
Toyota, Volkswagen, and Mercedes is satisfying consumer needs, which supports
the expansion of the car loan market. Moreover, the market's main growth drivers
are the advanced benefits from online applications for car loans and the
availability of a variety of vehicle purchasing options. Additionally, the
increase in consumer disposable income causes a huge demand for car sales.
Additionally, due to a growth in the availability of
long-duration repayment alternatives by 12 months to 3.5 to 4 years, countries
like China, India, Japan, and Australia have a high demand for car loans. As a
result, the market is also boosted by the rise in advantages from car
loans and is anticipated to offer the market tremendous prospects in the
upcoming years.
The average price of cars has risen globally in accordance
with rising car demand. As a result, the enormous increase in car prices is
pushing consumers to use car loans instead of making direct purchases. For
instance, according to the Bureau of Labor Statistics in the United States, the
average price of a new car increased upto USD 48,904 in 2022, from USD 37,876
in 2021 for light commercial vehicles.
The banks are the
leading segment of the car loan market and are anticipated to continue to
dominate during the forecast period. This is accounted for by the
fact that banks retain brand loyalty for their product offerings in the market
and allow simpler accessibility of car loan services. Additionally, the emergence of non-banking financial
companies offering young people appealing zero down payment loan options
and low interest rate EMIs have enticed them to acquire cars despite
having limited financial resources.
Based on the region, Europe
dominates the car loan market with the largest share. This emerges from the
dominance of companies offering financing services for cars. Additionally, the
region's strong advertising sector has raised people's awareness of car loan
plans, which has increased demand for car loans in the region.
Browse over XX market
data Figures spread through XX pages and an in-depth TOC on "Car Loan Market"
The car loan market is
segmented based on car type, provider type, percentage of amount sanctioned,
tenure, region, and competitive landscape. Based on car type, the market is
divided into hatchback,
sedan, SUV (sports utility car), MPV (multi-purpose vehicle), others (racing cars, specialty cars, etc.). Based on the provider
type, the market is segmented into banks, NBFCs (non-banking financial
services, OEM (original equipment manufacturer), others (fintech companies).
Based percentage of amount sanctioned the market is segmented into less than
25%, 25-50%, 51-75%, more than 75%. By tenure the market is segmented into less
than 3 years, 3-5 years, more than 5 years.
Key market players in the global car
loan market include:
- Ally Financial Inc.
- Bank of American Corporation
- Daimler Financial Services
- Capital One Financial Corporation
- Ford Motor Credit Company
- GM Financial Inc.
- Mitsubishi HC Capital UK PLC
- General Motors Financial Company, Inc.
- Toyota Financial Services
- JPMorgan Chase & Co.
Various International and
domestic companies are trying to enhance their market reach by increasing their
mergers and acquisitions. For instance, in 2021 JP Morgen announced that majority
ownership of Volkswagen payments business will be acquired by J.P. Morgan, as
well as J.P. Morgan and Volkswagen Financial Services will keep developing
specialized payment solutions for the whole Volkswagen Group in Europe and
broaden their reach globally.
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“The popularity of global car
loan market is rising with the rising trend of ownership of cars among consumers as well as rising preference towards massive models and branded cars. The
relaxation of EMIs and tenure provided by the financier will allow the customer
to adopt car loan which will drive the global car loan market. Moreover, the
emergence of digitalization is offering customers experience which is making
hassle free process of loan and boost the car loan market across the globe.” said
Mr. Karan Chechi, Research Director with TechSci Research, a research-based
global management consulting firm.
“Car Loan Market - Global Industry Size,
Share, Trends, Opportunity, and Forecast, 2018-2028F Segmented By Car Type
[Hatchback, Sedan, SUV (Sports Utility Car), MPV (Multi-Purpose Vehicle),
Others (Racing Cars, Specialty Cars, Etc.)], By Provider Type [Banks, NBFCs
(Non-Banking Financial Services, OEM (Original Equipment Manufacturer), Others
(Fintech Companies)], By Percentage of Amount Sanctioned [Less than 25%,
25-50%, 51-75%, More than 75%], By Tenure [ Less than 3 Years, 3-5 Years, More
than 5 Years], By Region,”,
has evaluated the future growth potential of the global car loan market and provides statistics and information
on market structure, size, share, and future growth. The report is intended to
provide cutting-edge market intelligence and help decision makers take sound
investment decisions. Besides, the report also identifies and analyzes the emerging
trends along with essential drivers, challenges, and opportunities present in
the global car loan market.
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