Automotive Financing Market: Current Analysis and Forecast (2022-2028)


Emphasis on Condition of Vehicle (New and used vehicles); Source Type (OEMs, Banks, Credit Unions, Financial Institutions); Vehicle type (Passenger Cars and commercial vehicles); and Region/Country

Detailed Analysis of COVID-19 Impact on the Automotive Financing Market







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Report Description
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Research Methodology

Report Description

Automotive Financing Market
Automotive Financing Market


Global Automotive Financing Market is expected to grow at a significant rate of around 6.5% during the forecast period. The global automotive financing market is projected to grow at CAGR~ 6.5 % (2021 -2028) The Covid 19 impacted the market and slowed growth but there was recovery due to sudden increase in demand for vehicles in the market owing to global advancement in technologies like online payments,  blockchains, and  100% financing. Individuals at the global level are switching towards new technology-driven vehicles and opting for electric vehicles. Rise of demand for financing will rise in countries like China, India, and Mexico due to their increasing population and change in lifestyle.

Insights Presented in the Report

“Amongst vehicle type, commercial vehicles to witness higher CAGR during the forecast period”

Commercial vehicles are costly and bigger in size as compared to passenger vehicles, so they require more financing. Customers of commercial vehicles require better insurance & upgradation as they are subjected to rough and continuous running conditions. Customers have to replace it with newer vehicles after a short duration so repeated purchasing happens earlier in commercial vehicles.

“Amongst source type, OEM to hold a significant CAGR in the market in 2020”

Amongst all other types, OEMs is the fastest when compared with other types in the source segment of the automotive financing market. OEMs have subsidiaries such as captive finances which are separate and run independently to provide loan and lease funds to buyers. Lower interest rates and buyback are some offers provided to gain customers.

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“Asia Pacific to hold a significant share in the market”

In Asia Pacific Region, the automotive financing market has grown up to the phase where it is mature enough to sustain longer and is expected further growth in upcoming years. Growth of overall global automotive financing will depend on the Asia pacific growth. Amongst all other regions, Asia Pacific is the fastest-growing region. In 2021 various government initiatives are being launched in various countries of the Asia pacific region such as China, India, and Japan. India’s government has launched FAME-II, PLI SCHEME, and Battery Swapping Policy, Special Electric Mobility Zone, and Tax Reduction on EVs.

Reasons to buy this report:

  • The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
  • The report presents a quick review of overall industry performance at one glance.
  • The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
  • Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
  • The study comprehensively covers the market across different segments.
  • Deep dive regional level analysis of the industry.

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1.1.Market Definitions
1.2.Main Objective
2.1.Research Process of the Automotive Financing Market
2.2.Research Methodology of the Automotive Financing market
2.3.Respondent Profile
6.1.Used vehicle
6.2.New vehicle
7.3.Credit unions
7.4.Financial institutions
8.1.Passenger Vehicle
8.2.Commercial Vehicle
9.1.North America   
 9.1.1.  U.S. 
 9.1.2.  Canada 
 9.1.3.  Rest of North America
 9.2.1.  Germany
 9.2.2.  U.K. 
 9.2.3.  France 
 9.2.4.  Italy 
 9.2.5.  Spain 
 9.2.6.  Rest of Europe
 9.3.1.  China 
 9.3.2.  Japan 
 9.3.3.  India 
 9.3.4.  Rest of Asia-Pacific
9.4.Rest of World  
10.1.Market Drivers
10.2.Market Challenges
10.3.Impact Analysis
13.1.Demand Side Analysis
13.2.Supply Side Analysis
15.1.Competitive Landscape
 15.1.1.Porters Fiver Forces Analysis
16.1.Ally Financial
16.2.Bank of America Corporation
16.3.Capital One
16.4.JPMorgan Chase & Co
16.5.Daimler Financial Service India Private Ltd
16.6.Ford Motor Company
16.7.General Motors Financial Company, Inc
16.8.Novuna 2022
16.9.Volkswagen Finance Private Limited
16.10.Toyota Kirloskar Motor

Research Methodology

Research Methodology for the Automotive Financing Market Analysis (2022-2028)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global automotive financing market were the three major steps undertaken to create and analyze the adoption of automotive financings in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global automotive financing market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:


Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Automotive Financing market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the automotive financing market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as condition of vehicle, source type, and vehicle type, Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the automotive financing market. Further, we conducted factor analysis using dependent and independent variables such as condition of vehicle, source type, and vehicle type. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the automotive financing market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global automotive financing market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

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Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of revenue (USD) and the adoption rate of the automotive financing market across the major markets domestically
  • All percentage shares, splits, and breakdowns of market segments and sub-segments
  • Key players in the global automotive financing market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Source type in Different Regions

Automotive Financing Market
Automotive Financing Market

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global automotive financing market. Data was split into several segments & sub-segments post studying various parameters and trends in the condition of type, source type, and vehicle type in the global automotive financing market.

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The main objective of the Global Automotive Financing Market Study

The current & future market trends of the global automotive financing market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and forecast market size of the automotive financing market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
  • Segments in the study include areas of as condition of vehicle, source type, and vehicle type.
  • Define and analysis of the regulatory framework for the automotive financing
  • Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
  • Analyze the current and forecast market size of the automotive financing market for the major region.
  • Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World.
  • Company profiles of the automotive financing market and the growth strategies adopted by the market players to sustain in the fast-growing market

Deep dive regional level analysis of the industry

You can also purchase parts of this report. Do you want to check out a section wise
price list?