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
Region:North America
Author(s):Akshit Goel
Product Code:KR879
September 2019
168
About the Report
US Vehicle Finance Market Overview and Size
US Vehicle Finance Market Segmentation
By Lender Type: The primary lending institutions in the US Vehicle Finance market include Banks, Captive Finance Companies, Credit Unions and Private Finance Companies. Banks hold a majority share in the market owing to their reliable lending reputation and digital lending platforms. In Used Vehicle Finance, Banks have captured a major chunk of the market when measured by Auto Loans Outstanding. However when it comes to New Vehicle Finance, their dominance is second to Captives. Captives have huge dealership networks and their high penetration rates enable them to target a major chunk of the New Vehicle Finance Market.
By Type of Vehicle (Passenger Cars and Light Trucks): Light Trucks accounted for a major share in the number of vehicles financed in the market, while the share of passenger cars was lower than that of light trucks. This was due to the high level of sales registered by Light Trucks.
By Time Period of Loan (Less than 3 years, 3, 4, 5, 6 and more years) Between New and Used Vehicles: Vehicles are financed for different tenures in the market, with the share of loans lasting for 6 years the highest. The overall trend in the market is the lengthening of loan terms with car buyers preferring to make payments over a longer period of time to distribute their financial burden evenly over a longer period. Borrowers provide raised interest rates for longer period loans with lower monthly payments. The trend towards longer loan terms is evident both in New and Used Vehicle finance with borrowers opting for loan terms in excess of 5 years.
By Risk Category: Prime loans form a major chunk of the Vehicle Finance Market in US when measured by Auto Loans Outstanding holding a dominant market share. Prime loans dominate in both New Vehicle and Used Vehicle Finance. Nonprime and Subprime loans have shown a rising trend owing to the relaxing of credit requirements and underwriting standards over the period of 2013-2018 but these loans have also tarnished the credit portfolio of lenders, registering massive defaults and delinquency rates on these loans.
Compeititive Landscape in the US Vehicle Finance Market
US Vehicle Finance Market Future Outlook and Projections
Key Topics Covered in the Report
- Executive Summary
- Research Methodology
- US Vehicle Finance Market Evolution
- US Vehicle Finance Market Overview and Genesis
- US Vehicle Finance Market Ecosystem, 2018
- US Vehicle Finance Market Value Chain Analysis
- US Vehicle Finance Market Size, 2013-2018
- US Vehicle Finance Market Segmentation, 2013-2018
- Major Trends and Development in US Vehicle Finance Market
- Regulatory Framework in the US Vehicle Finance Market
- Snapshot on Digitization of Vehicle Finance in US
- Customer Perspective in US Vehicle Finance Market
- Competitive Landscape containing Company and Product Profiles in the US Vehicle Finance Market
- US Vehicle Finance Market Future Outlook and Projections, 2018-2023
- Analyst Recommendations for the US Vehicle Finance Market
Products
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
Companies
Key Segments Covered
- New Vehicle
- Used Vehicle
- Passenger Cars
- Light Trucks
- Banks
- Captives and BHPH
- Credit Unions
- Private Finance Companies
- Super Prime
- Prime
- Non-prime
- Sub-prime
- Deep Sub-rime
- Less than 3 Years
- Three Years
- Four Years
- Five Years
- Six Years
- Seven Years or more
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
- Pentagon Federal Credit Union
Table of Contents
1. Executive Summary
Market Overview and Size
Market Segmentation
Future Analysis and Projections
2. Research Methodology
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size and Modeling
General Approach – Market Sizing
Market Sizing – US Vehicle finance market
Variables (Dependent and Independent)
Multi Factor Based Sensitivity Model
Regression Matrix
Limitations
Final Conclusion
3. Operating Model Analysis for US Vehicle Finance Market
3.1. Direct Lending
3.2. Indirect Lending
4. US Vehicle Finance Market Genesis And Overview
4.1. Market Overview, Genesis and Milestones
4.2. Competitive Timeline
5. US Vehicle Finance Market Competitive Ecosystem
6. US Vehicle Finance Market Size, 2013-2018
7. US Vehicle Finance Market Segmentation, 2013-2018
7.1. By New and Used Vehicle, 2013-2018
7.2. By Type of Vehicle, 2013-2018
7.3. By Finance Source (Banks, Captives, Credit Unions and Private Finance Companies), 2013-
2018
7.4. By Risk Category, Super Prime, Prime, Nonprime, Subprime and Deep-Subprime 2015-2018
By Risk Category for New Vehicles, 2013-2018
By Risk Category for Used Vehicles, 2013-2018
7.5. By Loan Tenure – New and Used Vehicles, 2013-2018
8. Government Regulations in US Vehicle Finance Market
8.1. Vehicle Financing
8.2. Applicable Laws/ Regulations
8.3. Regulation by Government Bodies
8.4. Regulatory Costs for Dealers
9. Customer Perspective for US Vehicle Finance Market
9.1. Customer Journey Involved in US Vehicle Finance Market
9.2. Pain Points for the Consumer Involved in US Vehicle Financing Process
10. Business Environment Analysis In US Vehicle Finance Market
PESTEL Analysis
11. Snapshot on Digitization of Vehicle Finance
11.1. Operating Model Transition
Traditional Vehicle Finance Model
Digital vehicle Finance Model
11.2. Operating Models in Digital Lending Ecosystem
11.3. Online Auto Lending Market Ecosystem
11.4. Online Auto Lead Generation
11.5. Major Company Profiles of Auto Loan Aggregators and Marketplaces
LendingTree
DealerTrack
Finance Express
Credit Union Direct Lending
RouteOne
11.6. Major Company Profiles of Auto Lead generation Companies
BlueSky
CyberLead
Auto Credit Express
12. Trends and Developments in US Vehicle Finance Market
Simplifying the Auto loan Process
Technology Driven Lending
Longer Loan Terms
Vehicle Protection
Rising Vehicle Sales
Online Marketplace
Shift from Lending to Leasing
Lenders Widening Risk Portfolio
13. Issues And Challenges in US Vehicle Finance Market
Protectionism and Souring Trade Relations
Higher Delinquencies and Non-Performing Loans
Disruption by Electric Vehicles and Hybrids
Regulatory Pressure
14. Competitive Landscape in US Vehicle Finance Market
14.1. Competition Overview
14.2. Market Share of Major Players in US Auto Finance Market, 2018
15. Product Profile of Major Players in US Vehicle Finance Market
15.1. Banks
Bank Of America
Wells Fargo
Capital One
Chase Auto Finance
Ally Financial Services
15.2. Captives
Ford Motor Credit Company
Honda Financial Services
Nissan Motor Acceptance Corporation
GM Financial
15.3. Private Finance Companies
Credit Acceptance Corporation
15.4. Credit Unions
Pentagon Federal Credit union
16. Company Profiling of Major Players in US Vehicle Finance Market
16.1. Banks
Ally Financial Services
Company Financial Analysis, 2013-2018
Capital One
Company Financial Analysis, 2013-2018
Wells Fargo
Chase Auto Finance
Bank of America
16.2. Captives
Toyota Motor Credit Corporation
American Honda Finance Corporation
Ford Motor Credit Corporation
16.3. Private Finance Companies
Santander Consumer USA
Credit Acceptance Corporation
16.4. Other Players
17. US Vehicle Finance Market Future Outlook and Projections, 2019-2023
17.1. Future Market Size, 2019-2023
17.2. Future Market Segmentation, 2019-2023
By Type of Vehicle Financed, 2019-2023
By Finance Source, 2018-2023
By Loan Tenure
18. Analyst Recommendations
Disclaimer
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