“The stature of primary lending institution for vehicle finance in US is shifting from Banks to non-bank lenders such as Captives and Credit Unions.”
Analysts at Ken Research in their latest publication “US Vehicle Finance Market Outlook to 2023 –By Banks and Non Bank Entities including Captives and Credit Unions and Finance Companies (Auto Loan Portfolio), By New and Used Vehicles, By Type of Vehicle Financed (Passenger Cars and Light Trucks), By Loan Time Period and By Risk Category” believe that the US Vehicle Finance market demand is likely to follow a stable trend in the near future due to a forthcoming decline in light vehicle sales and a shift towards newer models of mobility such as car sharing and leasing. Some positive factors expected to impact the market, are the influx of digitization based lending models, the spread of customized loan products and a further rise in the penetration rate of vehicle finance. The market is anticipated to register a positive CAGR of ~4% in terms of AUM during the forecasted period 2018-2023.
Market on Brink of Maturity: The US Vehicle Finance Market is one of the most highly developed and advanced vehicle finance market in the world and is slowly reaching its point of maturity after a period of sustained and continued growth. The country has one of the highest motorization rate of around 831 vehicles per 1,000 people, and this number has constantly contributed to the growth of vehicle finance in US.
Simplification of Lending Process: With Indirect Lending gaining precedence over Direct Lending, the loan process doesn’t involve communication between the Credit Institution and the Consumer for discussing loan terms and payments. With flexible payment options being introduced, the spotlight has shifted from affordability to convenience. Borrowers are now looking for flexibility in loan terms as well as refinancing options if the need arises. Lenders have been introducing customized products, to cater to needs of different consumer profiles and Online Lending Models have simplified and improved the ease with which borrowers can compare and avail financing for their vehicle.
Protectionist Measures might pose a Threat to Growth: President Trump imposed a number of tariffs on steel and aluminum, two major components of the automobile industry, thus threatening the sales of automobiles. The major brunt of this has been born by foreign OEMs who now face increased production costs and declining margin. Auto lenders are also faced with the problem of reducing margins and rising costs per customer acquisition, and hence are forced to pass on the final burden to the consumer.
Key Segments Covered:-
By New and Used Vehicle
New Vehicle
Used Vehicle
By Type Vehicle
Passenger Cars
Light Trucks
By Lender Category
Banks
Captives and BHPH
Credit Unions
Private Finance Companies
By Risk Category between New and Used Vehicles
Super Prime
Prime
Non-prime
Sub-prime
Deep Sub-rime
By Loan Tenure between New and Pre-Owned Motor Vehicles
Less than 3 Years
Three Years
Four Years
Five Years
Six Years
Seven Years or more
Key Target Audience:-
Existing Auto Finance Companies
Banks
Captive Finance Companies
Credit Unions
Private Finance Companies
New Market Entrants
Government Organizations
Investors
Automobile Associations
Automobile OEMs
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2018-2023
Key Companies Covered:-
Banks
Ally Financial
Wells Fargo
Bank of America
Chase Auto Finance
Capital One
Captives, Credit Unions and Finance Companies
Toyota Motor Credit Corporation
Ford Motor Credit
Nissan Motor Acceptance Corporation
GM Financial
American Honda Motor Corporation
Credit Acceptance
Santander Consumer USA
Key Topics Covered in the Report:-
US Vehicle Finance Industry
US Vehicle Finance Market Revenue
US Car Finance Market
US Auto Finance Market
Used Vehicle Finance Market US
Online Auto Lending Market US
Number of Cars Financed In US
US Vehicle Finance Competition
Passenger Cars Loan US
RouteOne Auto Loan Aggregators US
Average Car Loan Amount In US
Auto Loan Outstanding US
Sales of Light Vehicle in Million US
Auto Leasing Market US
Captive Finance Companies US
For more information on the research report, refer to below link:-
Related Reports:-
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Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
