Automotive Finance Market (By Provider Type: Banks, OEMs, Others; By Finance Type: Direct, Indirect; By Purpose Type: Loan, Leasing, Others; By Vehicle Type: Commercial Vehicles, Passenger Vehicles) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global automotive finance market size was exhibited at USD 290.19 billion in 2022 and is projected to hit around USD 524.61 billion by 2032, growing at a CAGR of 6.1% during the forecast period 2023 to 2032.

Key Pointers:

• Europe dominated the market and captured more than 40.9% of the revenue share in 2022. 
• Asia Pacific is predicted to register the fastest rate between 2023 and 2032. 
• By provider type, the bank's segment dominated the market and captured a maximum global revenue share of around 57.56% in 2022. 
• By provider type, the OEM segment is predicted to record the largest growth from 2023 to 2032. 
• By finance type, the direct segment generated the maximum global revenue of over 56.9% in 2022.
• By finance type, the indirect segment is projected to record the largest growth between 2023 and 2032. 
• By purpose type, the loan segment generated a maximum revenue share of more than 60.2% in 2022.
• By purpose type, the leasing segment is projected to record the largest growth from 2023 to 2032. 
• By vehicle type, the passenger vehicles segment captured for more than 63.9% of revenue share in 2022.
• By vehicle type, the commercial vehicles segment is predicted to register a noteworthy CAGR from 2023 to 2032.

Automotive Finance Market Report Scope

The increasing global demand for electric vehicles is one of the major factors, expected to drive market growth. According to the Experian’s State of the Automotive Finance report, electric vehicles comprised 4.56% of new vehicle financing in Q4 2021, up from 2.29% in Q4 2020 and 1.39% in Q4 2019 in the U.S. According to this report, consumers in the U.S. are more likely to purchase new electric vehicles rather than lease them.

The growing importance of captive automotive finance worldwide is creating new opportunities for market growth. Captive finance is a subsidiary of an automaker that provides loans and financial services to the company's customers. The benefits of starting a captive finance company include personalized finance options for the customers, and equipment rental programs, among others. The companies such as Honda Finance, Ford, Infiniti, and Nissan are seeing strong growth in captive finance.

The growing importance of cryptocurrency across the automotive finance industry is expected to drive market growth. Various automotive technology providers are adopting cryptocurrency-based payments to enhance their offerings. For instance, in March 2022, Car Now, an automotive industry’s digital retailing company, announced its partnership with Cion Digital, a blockchain orchestration platform. Through this partnership, Car Now will offer auto dealers compliant and fast crypto payment and lending solutions.

Artificial intelligence technology is increasingly being used in the automotive finance sector, in order to improve the credit underwriting process, analyze the data, accurately predict whether the applicant can turn delinquent, and thus enhance the approval process. Various automotive artificial intelligence technology providers are making efforts to develop AI-enabled lending platforms. For instance, in October 2021, Upstart, a leading AI lending platform, announced the launch of Upstart Auto Retail software. This software includes AI-enabled financing features which enable the lenders to improve their customer experience.

The growing global demand for automotive refinancing is also one of the major factors, creating new opportunities for market growth. The demand for refinancing is growing due to its benefits, such as lower monthly car payments, reduced interest rates, and shortened loan terms. According to the statistics provided by Rate Genius, a fintech company, 16.0% more additional Americans applied to refinance their automotive loans in 2020 as compared to 2019. As compared to 2019, as many as 17.0% of additional borrowers refinanced their car loans successfully in 2020, as compared to 2019.

Some of the prominent players in the Automotive Finance Market include:

• Ford Motor Credit Company
• GM Financial Inc. 
• Hitachi Capital 
• Ally Financial 
• Bank of America 
• Capital One 
• Toyota Financial Services 
• Volkswagen Financial Services 
• Chase Auto Finance 
• Daimler Financial Services 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Automotive Finance market.

By Provider Type

• Banks
• OEMs
• Other Financial Institutions

By Finance Type

• Direct
• Indirect

By Purpose Type

• Loan
• Leasing
• Others

By Vehicle Type

• Commercial Vehicles
• Passenger Vehicles
• By Region
• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)