The Vehicle Finance Market in Qatar observed a slight decline during the period 2014-2018, due to decreasing new vehicle sales over the same duration. The market is in growth stage with vehicle sales beginning to follow a normal growth trend after continued exponential growth till 2014, followed by a speedy decline after that. Trends in the market were greatly stimulated by deduction in oil prices after 2014 and blockade led by Saudi & a few other neighboring gulf countries against Qatar. These trends led to decline of new vehicle sales in Qatar but spurred the growth of used vehicles, particularly in passenger cars segment across the country.
According to the report analysis, ‘Qatar Auto Finance Market Outlook to 2023 –By Banks, Non-Banking Financial Companies and Captives, By New and Used Vehicles Financed, By Type of Vehicle Financed (Motor Bikes, Cars and Light Commercial Vehicles) and By Loan Time Period’ states that the competition in the market is concentrated in nature. The key lending institution types in the market are Banks, Captives & Non-Banking Financial Companies. Banks control a majority share in the lending space for new vehicles whereas NBFCs & Captives are predicted to gain the used vehicle segment during the future. Foremost parameters basis which players compete are interest rate and down payment ratio, loan tenure, digitalization and ease of transaction, consumer reach or branch network, service portfolio and several others.
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By time period of loan for new and used vehicles, vehicles are financed for dissimilar tenures in the market, with the share of loans lasting for 3-4 years the highest. The complete trend in the market is the lengthening of loan terms with car buyers desiring to make payments over a longer period of time to allocate their financial burden evenly over a longer duration. Borrowers deliver raised interest rates for longer duration loans with lower monthly payments. The trend towards longer loan terms is evident both in New and Used Vehicle finance with borrowers choosing for longer loan terms years increasingly.
Over the forecast period, Qatar Auto Finance Market is predicted to rise at a positive rate with estimated grow in sales of new and used vehicles in the country due to emergence of new businesses, growing personal disposable income and projected increase in tourist inflow. Prevailing players are predicted to move towards digitalization with aim on streamlining the financing procedure for both Qataris and expats. Multiple fin-tech start-ups are also projected to enter the landscape which could pose a threat to conventional finance companies and banks. These start-ups would commonly work towards developing products to increase the digitalization of the banking sector. This involves the digital payments, online lending, online aggregation and remote banking facilities which will make customer lending procedure more simplified, further facilitating the car finance market in the country. Banks and Captives are projected to focus and develop their share in the used cars segment, also new NBFCs are projected to enter the competitive landscape to cater to the growing requirement of vehicle financing in the country.
For more information on the research report, refer to below link:
Qatar Auto Finance Market Outlook to 2023
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