Commercial Vehicles to Dominate the United States Automotive Loan Market During the Forecast Period
The rise in demand for non-banking financial
companies (NBFCs), increasing price of vehicles, and increased usage of
web-based platforms and technologies are the leading factors driving the United
States automotive loan market during the
projected period.
According to TechSci Research
report, “United States Automotive Loan Market–By Region,
Competition, Forecast & Opportunities 2028F” United States automotive loan market is
expected to grow faster during the forecast period with the increasing sales of
vehicle. The sales will begin to rise when offices reopen, and business
activity will increase throughout the country in 2022. The country's increased
automobile sales are a result of the individual's better financial conditions.
More individuals could now afford new cars due to favorable economic conditions
and increased consumer purchasing power, which fueled the country's auto
market's growth. Sales of automobiles and auto financing have fueled mainly the
United States economy is one of the significant factors driving auto sales.
Financial
institutions have been encouraged to use digital technology in their business
models for better revenue generation due to the growth in digitalization in the
automobile industry. Online services are provided to provide fast services and
improve customer experience. These services include credit approval, car
search, and selection, pricing, contracting, and communicating directly with
financiers. Additionally, the market for the automotive loan is expanding as
more green vehicles are being adopted. The penetration of electric passenger
vehicles has increased due to increased demand for fuel-efficient cars, rising
manufacturing volumes, and stricter regulatory regulations. Many auto lenders
have collaborated with governments to provide consumers with enticing programs
for purchasing electric vehicles.
In 2021,
President Biden signed an executive order which outlined that by 2030, 50% of
all new cars sold in the United States must be electric. Therefore, many
financial institutions are offering green auto loans, a financing option for
consumers purchasing zero- or low-emission vehicles, and these environmentally
friendly automobiles are primarily hybrid or electric. Various manufacturers,
including Ford, Nissan, and Tesla, produce them. Green auto loan offers
individual lower interest rates and several other benefits. For instance, while
purchasing the Bolt EV, Chevrolet provides a 3.49% APR for 60-month financing.
Similarly, Ford provides a 3.9% APR on the funding for its Mustang Mach-E for
up to 72 months. These prices are significantly lower than the current average
interest rates for new car loans, which in 2022 ranged from 5.4% to 5.28%.
Moreover, there
are various benefits of automotive loan to customers, which includes the
affordability to purchase a vehicle, in many cases, a higher value vehicle, protection,
insurance, and other services like maintenance and product servicing, low
initial payment/deposit, and moderate recurring payments that can be customized
to each customer's cash flow needs, additional advantages from financial
initiatives, including reduced interest rates and other incentives, etc. are
making people to avail automotive loan due to the benefits provided by
financial institutions.
Browse over XX market
data Figures spread through XX pages and an in-depth TOC on "United
States Automotive Loan Market"
The automotive loan
market is segmented based on vehicle type, provider type, percentage of amount
sanctioned, tenure, regional
distribution and competitive landscape. The market is divided into two-wheeler,
passenger cars, and commercial vehicles based on vehicle type. Based on the
provider type, the market is segmented into banks, NBFCs (non-banking financial
services, OEM (original equipment manufacturers), and others (fintech
companies). Based percentage of the amount sanctioned, the market is segmented
into less than 25%, 25-50%, 51-75%, and more than 75%. By tenure, the market is
segmented into less than 3 years, 3-5 years, and more than 5 years.
Key market players in the United
States automotive loan market include:
- Ally Financial Inc.
- Bank of American Corporation
- Toyota Financial Services
- Capital One Financial Corporation
- Ford Motor Credit Company
- General Motors Financial Company, Inc.
- JPMorgan Chase & Co.
- U.S. Bancorp
- WELLS FARGO & CO.
- Midland States Bancorp, Inc.
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“The market for
automotive loans in the US is expected to expand due to the rising demand for
passenger cars, the increasing use of alternative fuel vehicles, and proactive
government initiatives to encourage electric cars. Due to rising disposable
income of low economy people, shifting consumer lifestyles, expanding
automotive production volume, and growing demand for fuel-efficient vehicles,
there is expected to be a rise in the market for automotive loans for passenger
and commercial vehicles.” said Mr. Karan Chechi, Research Director with TechSci
Research, a research-based global management consulting firm.
“United States Automotive Loan
Market By Vehicle Type [Two-Wheeler,
Passenger Car, Commercial Vehicle], By Provider Type [Banks, NBFCs (Non-Banking
Financial Services, OEM (Original Equipment Manufacturer), Others (Fintech
Companies)], By Percentage of Amount Sanctioned [Less than 25%,
25-50%, 51-75%, More than 75%], By Tenure [ Less than 3 Years, 3-5 Years, More
than 5 Years], By Region, Competition Forecast & Opportunities, 2018-2028F,” has
evaluated the future growth potential of automotive loan market in the United
States and provides statistics and
information on market structure, size, share, and future growth. The report is
intended to provide cutting-edge market intelligence and help decision makers
take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities present in the United States automotive loan market.
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