Monday, July 26, 2021

Car Financing Market Outlook to 2026: Emerging Trends and Will Generate New Growth Opportunities Status

Global Car Financing Market: Overview

The global car financing market is primarily driven by the rising consumer aspiration for car ownership. The emergence of non-banking financial companies that offer lucrative zero down payment financing schemes and low interest EMIs have lured the young population to own car despite less capital at disposal.

The report on the global car financing market is appropriately segmented on the basis of service provider, vehicle, sales network, tenure, and region. Passenger vehicles segment is anticipated to rise at a healthy clip over the forecast period through 2026.

The report compiled by seasoned analysts provides a brilliant assessment of the car financing market by examining demand drivers, restraints, trends, opportunities, competitive dashboard, and other important aspects.

Global Car Financing Market: Trends and Opportunities

Improving macroeconomics coupled with increasing number of first time car buyers are some key trends that have come to the fore in emerging economies. To serve this, several financial institutions as well as non-banking financial companies are offering car financing as a key business activity. Non-banking financial companies offer car financing at less stringent loan eligibility criteria and flexible repayment tenure which lures consumers for car ownership.

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Apart from this, rising trend of digital underwriting and adoption of effective risk management strategies by car financiers are fuelling the car financing market. In addition, aggressive sales strategies adopted by car financiers to stay in business is serving to provide further boost to this market. Furthermore, differentiated product offerings and subvention based schemes to be favorable for customers is likely to bode well for car financing market.

Meanwhile, car financiers can vie to reap growth from opportunities arising via dealer channels and walk-ins. Affordable financing options, flexible repayment, and high loan-to-value ratio are some favorable facets of the car financing market.

Increasing practices of switch to newer models that boosts car sales and consumer preference for a lower vehicle cycle opens avenues for car financiers. Buyback options offered by car dealers and OEM warranty schemes that may require refinancing will provide new opportunities to the car financing market.

On the flip side, unavailability of complete consumer credit history and risk of loan default are challenges for the car financing market.

Global Car Financing Market: Competitive Analysis

Key companies operating in the global car financing market include Toyota Financial Services, VTB Bank OJSC, General Motor Financial Company, Ford Motor Credit, HDFC Bank, Hitachi Capital Asia Pacific, Volkswagen Financial Services, Bank of America, and Citibank.

Global Car Financing Market, by Service Provider

  • Banking Institutions
  • Non-banking Financial Companies

Global Car Financing Market, by Sales Network

  • Dealership Walk In’s
  • Direct Finance Approach

Global Car Financing Market, by Vehicle

  • Passenger Vehicles
  • Commercial Vehicles

Global Car Financing Market, by Region

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East & Africa

This report gives access to decisive data, such as:

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