Ecosystem of Australia Car Finance Market
Australia Car Finance Market is at a growing stage and is a fragmented market. The Australia Car Finance market has seen emergence of more players over the past 5 years. Before Covid people prefer to buy cars at full cash payment in order to avoid long-term EMI payments disturbing individual budgets. Covid-19 has triggered the market for automotive financing. Few Major Car Finance Providers in Australia are Toyota Finance Australia Limited, National Australia Bank Limited, Australia and New Zealand Banking Group Limited, Commonwealth Bank, Car Clarity etc.
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Key Findings
- During covid people in Australia suffered economic losses and financial crisis which has helped them to realize the price and value of money. this has triggered the demand for financing a car based on down payments and paying rest amounts in the form of month EMI. This has helped consumer to manage their respective monthly expenditure and also helped people with lower disposable income.
- Used vehicle financing helps people to own a personal vehicle at the much-lowered price at affordable EMI installments. This reduces the burden of one-time payments just with a 30% initial down payment.
- With changing passenger vehicle landscape in Australia, in August 2022 Bank Australia shall stop giving the loans for IC engine model cars from 2025. The banks in Australia will only finance the hybrid and electric vehicles in order to take the country towards green economy.
Growth in global average price of vehicles: Rise in massive demand for new car models and branded cars worldwide has become one of the major growth factors in the market. As consumer trends and preferences toward car purchases have increased tremendously, demand for car financing & loans is expected to rise and is expected to maintain its dominance in the market. Therefore, with rise in demand for cars, global average price of vehicles has increased simultaneously. Thus, massive rise in vehicle prices urge consumers to switch from direct purchases to auto or car finances in the market.
Rise in Dealer penetration in Australia: At the beginning of 2021, there were over 1,500 new car dealers in Australia responsible for more than 2,500 outlets. In other words, around 1 new car outlet per 9000 people. Today, the network sits at around 3,000 outlets, or around 1 new car outlet per 8000 people approximately. This increase reflects consumers shifting to a different kind of focus and dealers meeting such demands.
Implementation of technologies in existing product lines: Car finance providers are focused to offer value added services to their customers, expanding existing product & service offerings by implementing technologies such as artificial intelligence, business analytics, and blockchain are anticipated to help improve quality of services and increase the level of customer satisfaction. Furthermore, these technologies allow companies to structure new and used auto loans more accurately. Therefore, expansion of existing products & services by implementation of new technologies is expected to provide lucrative opportunities for car finance providers in the upcoming years.
Analysts at Ken Research in their latest publication “Australia Car Finance Market Outlook to 2028F- By Category of Vehicles (Passenger Vehicles, Commercial Vehicles), By Ownership of Vehicles (New Vehicles, Used Vehicles), By Category of Lenders (NBFCs, Universal and Commercial Banks, Captives), By Loan Tenure (12-24 Months, 25-48 Months.” by Ken Research observed that Australia Car Finance Market is in the growing phase. Enhancing Service Offerings, collaborations with partners, expand pipeline with predictive analysis and getting in front of prospects through AI are some of the factors that will contributed to the Australia Car Finance market growth over the period of 2021-2026F. It is expected that Australia Car Finance Market will grow at a CAGR of ~% for the above forecasted period.
Key Segments Covered in the report
Australia Car Finance Market
- By Category of Vehicles
- Passenger Vehicles
- Commercial Vehicles
- By Ownership of Vehicles
- New Vehicles
- Used Vehicles
- By Category of Lenders
- NBFCs
- Universal and Commercial Banks
- Captives
- By Loan Tenure
- 12-24 Months
- 25-48 Months
- 49-60 Months
Key Target Audience
- Existing Auto Finance Companies
- Banks
- OEM Dealerships
- Captive Finance Companies
- Credit Unions
- Private Finance Companies
- New Market Entrants
- Government Organizations
- Investors
- Auto mobile Associations
- Auto mobile OEMs
Time Period Captured in the Report:
- Historical Period: 2018-2023P
- Base Period: 2023P
- Forecast Period: 2023P– 2028F
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Companies Covered:
- Car Finance Australia
- National Australia Bank Limited
- The Australia and New Zealand Banking Group Limited
- Toyota Finance Australia Limited
- Auto Finance Australia
- LifeX Finance
- Car Clarity
- Simply Finance
- Journey Finance
- Car Loans.com.au
- C1 Car Loans
- Stratton Finance Melbourne
- Driva
- Zoom Car Loans
- Fingo Finance
Banks
- ANZ
- Commonwealth Bank CBA
- NAB
- Westpec
Key Topics Covered in the Report
- Australia Automotive Market Overview
- Ecosystem of Australia Car Finance Market
- Australia Car Finance Market Evolution and Business Cycle
- Australia Car Finance Value Chain Analysis
- Australia Car Finance Market by Credit Disbursed
- Australia Car Finance Market Segmentation, 2023P
- SWOT Analysis of Australia Car Finance Industry
- Infrastructure Development Overview of Australia
- Trends and Developments in Australia Car finance industry
- Decision Making Parameters for Selecting Car Loan Vendor
- Operational Strategies for Australia Car Finance Services Market
- Issues and Challenges in Australia Car Finance Industry
- Government policies affecting the Australia Car finance Industry
- Government Initiatives for Automotive Industry
- Growth Drivers of Australia Car Finance Market
- COVID Impact on the Australia Car Finance Industry
- Australia Car Finance Market Competition Overview
- Cross Comparison of Major Players in Australia Car Finance Market
- Strengths and Weakness of Major Players in Australia Car finance market
- Future Outlook and Market Projections, 2028F
- Best Practices for Building a Successful Car finance company
- Analyst Recommendations
- Industry Speaks
- Research Methodology
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