DUBLIN, Dec. 13, 2023 /PRNewswire/ — The “United States Automotive Loan Market Competition Forecast & Opportunities, 2028” report has been added to ResearchAndMarkets.com’s offering.
The automotive loan market is witnessing robust growth due to different factors, such as dramatically rising prices of both new and used cars.
Government investment and development in online retail and logistics have produced a more robust demand for commercial vehicles. The auto loan industry is rising and experiencing significant expansion in the share of commercial vehicles. Thus, the United States automotive loan market will boost globally in the forecast period.
The automotive loan is provided by various financing companies, which allows one to buy a vehicle. When an individual gets approved for the loan, the lender will offer a certain amount of money which has to be paid back with interest and over an agreed period. Based on vehicle, there is a segment of two-wheeler loans that helps an individual buy a motorcycle and scooter and lay it later with EMIs.
Passenger car includes hatchback, sedan, SUV, and MPV. An individual takes a loan to buy passenger cars. A commercial vehicle loan gives borrowers money to purchase a vehicle for business use. Commercial vehicles include trucks. Light-duty, medium-duty, and heavy-duty vans and buses are also commercial vehicles.
Additionally, the automotive loan is primarily provided through banks, NBFCs (Non-Banking Financial Companies, OEM (original equipment manufacturer), and others (fintech companies) over a specified tenure and interest rate.
According to the report of NADA (National Automobile Dealers Association), 2022 from the previous year, light commercial vehicle sales in the US increased by 7.9% on a yearly average to 14.1 million units, with hatchback and pickup trucks accounting for over two-thirds of sales, Toyota, GM, Stellantis, and Ford dominated the market.
According to the MarkLines 2022, around 12.05 million commercial vehicles were sold in the United States, and 3.3 million passenger cars were sold. Therefore, sales from heavy trucks and passenger cars have been increasing, which, in turn, drives the growth of automotive loans during the forecast period.
Factors Fueling Market Growth:
- Surging car prices in the U.S. are leading consumers to seek loans for vehicle purchases.
- New vehicle costs in the U.S. are rising faster than the current inflation rate.
- Semiconductor supply chain issues are contributing to automakers’ inability to meet demand.
- Rising vehicle prices are driving more buyers to choose used cars and trucks.
- During the second quarter, used vehicles accounted for 61.8% of total vehicle loans.
- Demand for pickup trucks is increasing due to their versatility and performance.
- Pickup trucks are well-suited for both off-road and on-road driving.
- Texas has the highest percentage of pickup trucks in the country.
- Expansion of electric vehicles (EVs) is boosting the market, driven by environmental concerns.
- EVs offer several benefits, but their prices are higher than gasoline-powered vehicles.
- Consumers are taking loans to buy EVs, and they often receive federal and state tax credits and incentives.
- Lenders are offering “Green Auto Loans” for eco-friendly vehicle purchases, providing discounts and extended repayment terms.
- The demand for automotive loans is growing in the U.S. due to the rise in electric cars and associated benefits.
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the United States automotive loan market.
- Ally Financial Inc.
- Bank of American Corporation
- Toyota Financial Services
- Capital One Financial Corporation
- Ford Motor Credit Company
- General Motors Financial Company
- JPMorgan Chase & Co.
- U.S. Bancorp
- WELLS FARGO & CO
- Midland States Bancorp, Inc.
Market Dynamics
Drivers
- Easy Loan Process
- Surging Prices of Cars
- Propelling Demand of Pickup Truck
Market Trends & Developments
- Growing Demand for Automotive Refinancing
- Expansion of Electric Vehicles
- Rising Digitalization of Loan Services
- Growing Captive Finance Companies
Challenges
- High Competition and Market Saturation
- Rising Prices of Automotives
Voice of Customer Analysis (B2C Model Analysis)
- Brand Awareness
- Factors Influencing Loan Availing Decision
- Sources of Information
- Challenges Faced After Purchase
Report Scope:
United States Automotive Loan Market, By Vehicle Type:
- Two-Wheeler
- Passenger Car
- Commercial Vehicle
United States Automotive Loan Market, By Provider Type:
- Banks
- NBFCs (Non-Banking Financial Companies)
- OEM (Original Equipment Manufacturer)
- Others
United States Automotive Loan Market, By Percentage of Amount Sanctioned:
- Less than 25%
- 25-50%
- 51-75%
- More than 75%
United States Automotive Loan Market, By Tenure:
- Less than 3 Years
- 3-5 Years
- More than 5 Years
United States Automotive Loan Market, By Region:
- South
- West
- Mid-West
- North-East
For more information about this report visit https://www.researchandmarkets.com/r/w89ktn
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