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

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Summary

Report Description

Forecast Period

2024-2028

Market Size (2022)

USD160.51 Billion

CAGR (2023-2028)

6.30%

Fastest Growing Segment

OEM

Largest Market

South Region


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 services, 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.

Surging Prices of Cars Fuels the Market Growth

As the prices of cars are increasing, consumers are pushing towards borrowing a loan to make a purchase. Even though the Federal Reserve has been trying to moderate the economy by raising interest rates, new vehicle costs in the US have been growing higher than the rate of current inflation of the year. Due to semiconductor supply chain constraints and other problems, automakers claim they are still unable to keep up with demand. For instance, according to Experian, loan data for 2022 demonstrate that as new vehicle prices rise, more buyers choose used cars and trucks. During the second quarter, used automobiles accounted for 61.8% of total vehicle loans, up from 58.5% the previous year. 60% of the cars financed were sport utility vehicles. Therefore, it is observed that rising prices of vehicles are making people take loans or buy used vehicles, even the used vehicles loan is more than the new vehicles loan which is driving the automotive loan market in the United States.

Propelling Demand for Pickup Truck Fueling the Market Growth

The demand for pickup trucks is increasing due to the high-value proportion used for freight and passenger transit. The pickup trucks have lifted axles, fitted wheels, and alloy wheels to help them handle rocky, wet, and muddy terrain. They are excellent for both off-road and on-road driving. For instance, according to Experian Automotive, pickup truck makes up around 26.91% of all vehicles in Texas. As a result, Texas has the most significant percentage of pickup trucks in the country as the cost of a new pickup truck in the United States is high, due to which people prefer loans over cash-down methods. For availing loan for lorries, the distinction is made between commercial or personal use while the financier is reviewing the application. Thus, considering advantages, customers prefer pickup trucks over passenger cars, anticipating people to take a loan to buy pickup trucks that offer them durability and different uses.

Expansion of Electric Vehicles Boost the Market Growth

With the growing concern for the environment, there is an increase in the use of electric vehicles in the United States. Passenger cars, electric delivery vans, trucks, e-bikes, etc., are available in the United States market. Thus, consumers are buying electric vehicles due to their several benefits, but the price of electric cars is much higher than gasoline-powered vehicles. So, most consumers are taking a loan to buy electric cars. Additionally, consumers are offered certain federal and state tax credits or incentives benefits while buying through the automotive loan. For instance, various lenders are providing a ‘Green Auto Loan,’ used to purchase eco-friendly vehicles by offering multiple discount rates, extended repayment terms, and other benefits. Therefore, with the rise in electric cars and the benefits of electric vehicle loans, the demand for automotive loans is also growing in the United States.


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Market Segmentation

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.

Company Profiles

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. are among the major market players in the United States automotive loan market.

Attribute

Details

Base Year

2022

Historical Years

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Billion and CAGR for 2018-2022 and 2023-2028

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Vehicle Type

Provider Type

Percentage of Amount Sanctioned

Tenure

Region

Regional Scope

South, West, Mid-West, North-East

Key Companies Profiled

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.

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail of customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

 Report Scope:

In this report, the United States automotive loan market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • 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 Services
    • 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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United States automotive loan market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

It is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary      

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis (B2C Model Analysis)

4.1.  Brand Awareness

4.2.  Factors Influencing Loan Availing Decision

4.3.  Sources of Information

4.4.  Challenges Faced After Purchase

5.    United States Automotive Loan Market Outlook

5.1.  Market Size & Forecast

5.1.1.    By Value

5.2.  Market Share & Forecast

5.2.1.    By Vehicle Type Market Share Analysis [Two-Wheeler, Passenger Car, Commercial Vehicle]

5.2.2.    By Provider Type Market Share Analysis [Banks, NBFCs (Non-Banking Financial Companies, OEM (Original Equipment Manufacturer), Others (Fintech Companies)]

5.2.3.    By Percentage of Amount Sanctioned Market Share Analysis [Less than 25%, 25-50%, 51-75%, More than 75%]

5.2.4.    By Tenure Market Share Analysis [Less than 3 Years, 3-5 Years, More than 5 Years

5.2.5.    By Regional Market Share Analysis

5.2.5.1.        South Market Share Analysis

5.2.5.2.        West Market Share Analysis

5.2.5.3.        Mid-West Market Share Analysis

5.2.5.4.        North-East Market Share Analysis

5.2.6.    By Top 5 Companies Market Share Analysis, Others (2022)

5.3.  United States Automotive Loan Market Mapping & Opportunity Assessment

5.3.1.    By Vehicle Type Market Mapping & Opportunity Assessment

5.3.2.    By Provider Type Market Mapping & Opportunity Assessment

5.3.3.    By Percentage of Amount Sanctioned Market Mapping & Opportunity Assessment

5.3.4.    By Tenure Market Mapping & Opportunity Assessment

5.3.5.    By Region Market Mapping & Opportunity Assessment

6.    United States Two-Wheeler Automotive Loan Market Outlook

6.1.  Market Size & Forecast        

6.1.1.    By Value

6.2.  Market Share & Forecast

6.2.1.    By Provider Type Market Share Analysis

6.2.2.    By Percentage of Amount Sanctioned Market Share Analysis

6.2.3.    By Tenure Market Share Analysis

7.    United States Passenger Car Automotive Loan Market Outlook

7.1.  Market Size & Forecast        

7.1.1.    By Value

7.2.  Market Share & Forecast

7.2.1.    By Provider Type Market Share Analysis

7.2.2.    By Percentage of Amount Sanctioned Market Share Analysis

7.2.3.    By Tenure Market Share Analysis

8.    United States Commercial Vehicle Automotive Loan Market Outlook

8.1.  Market Size & Forecast        

8.1.1.    By Value

8.2.  Market Share & Forecast

8.2.1.    By Provider Type Market Share Analysis

8.2.2.    By Percentage of Amount Sanctioned Market Share Analysis

8.2.3.    By Tenure Market Share Analysis

9.    Market Dynamics

9.1.  Drivers

9.1.1.    Easy Loan Process

9.1.2.    Surging Prices of Cars

9.1.3.    Propelling Demand of Pickup Truck

9.2.  Challenges

9.2.1.    High Competition and Market Saturation

9.2.2.    Rising Prices of Automotives

10.  Impact of COVID-19 on Global Automotive Loan Market

10.1.             Impact Assessment Model    

10.1.1. Key Segments Impacted

10.1.2. Key Regions Impacted

10.1.3. Key Provider Type Impacted

11.  Market Trends & Developments

11.1.             Growing Demand for Automotive Refinancing

11.2.             Expansion of Electric Vehicles

11.3.             Rising Digitalization of Loan Services

11.4.             Growing Captive Finance Companies

12.  SWOT Analysis

12.1.             Strengths

12.2.             Weaknesses

12.3.             Opportunities

12.4.             Threats

13.  Policy & Regulatory Landscape

14.  China Economic Profile

15.  Competitive Landscape

15.1.             Company Profiles

15.1.1. Ally Financial Inc.

15.1.1.1.     Company Details

15.1.1.2.     Product & Services

15.1.1.3.     Financials (As Reported)

15.1.1.4.     Key Market Focus & Geographical Presence

15.1.1.5.     Recent Developments

15.1.1.6.     Key Management Personnel

15.1.2. Bank of American Corporation

15.1.2.1.     Company Details

15.1.2.2.     Product & Services

15.1.2.3.     Financials (As Reported)

15.1.2.4.     Key Market Focus & Geographical Presence

15.1.2.5.     Recent Developments

15.1.2.6.     Key Management Personnel

15.1.3. Toyota Financial Services

15.1.3.1.     Company Details

15.1.3.2.     Product & Services

15.1.3.3.     Financials (As Reported)

15.1.3.4.     Key Market Focus & Geographical Presence

15.1.3.5.     Recent Developments

15.1.3.6.     Key Management Personnel

15.1.4. Capital One Financial Corporation

15.1.4.1.     Company Details

15.1.4.2.     Product & Services

15.1.4.3.     Financials (As Reported)

15.1.4.4.     Key Market Focus & Geographical Presence

15.1.4.5.     Recent Developments

15.1.4.6.     Key Management Personnel

15.1.5. Ford Motor Credit Company

15.1.5.1.     Company Details

15.1.5.2.     Product & Services

15.1.5.3.     Financials (As Reported)

15.1.5.4.     Key Market Focus & Geographical Presence

15.1.5.5.     Recent Developments

15.1.5.6.     Key Management Personnel

15.1.6. General Motors Financial Company

15.1.6.1.     Company Details

15.1.6.2.     Product & Services

15.1.6.3.     Financials (As Reported)

15.1.6.4.     Key Market Focus & Geographical Presence

15.1.6.5.     Recent Developments

15.1.6.6.     Key Management Personnel

15.1.7. JPMorgan Chase & Co.

15.1.7.1.     Company Details

15.1.7.2.     Product & Services

15.1.7.3.     Financials (As Reported)

15.1.7.4.     Key Market Focus & Geographical Presence

15.1.7.5.     Recent Developments

15.1.7.6.     Key Management Personnel

15.1.8. U.S. Bancorp

15.1.8.1.     Company Details

15.1.8.2.     Product & Services

15.1.8.3.     Financials (As Reported)

15.1.8.4.     Key Market Focus & Geographical Presence

15.1.8.5.     Recent Developments

15.1.8.6.     Key Management Personnel

15.1.9.   WELLS FARGO & CO

15.1.9.1.     Company Details

15.1.9.2.     Product & Services

15.1.9.3.     Financials (As Reported)

15.1.9.4.     Key Market Focus & Geographical Presence

15.1.9.5.     Recent Developments

15.1.9.6.     Key Management Personnel

15.1.10.               Midland States Bancorp, Inc.

15.1.10.1.   Company Details

15.1.10.2.   Product & Services

15.1.10.3.   Financials (As Reported)

15.1.10.4.   Key Market Focus & Geographical Presence

15.1.10.5.   Recent Developments

15.1.10.6.   Key Management Personnel

16.  Strategic Recommendations/Action Plan

16.1.             Key Focus Areas

16.2.             Target Vehicle Type

16.3.             Target Provider Type

17.  About Us & Disclaimer

(Note: The companies list can be customized based on the client requirements.)

Figures and Tables

Frequently asked questions

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Key factors driving the growth of the United States automotive loan market include the rise in web-based platforms, increased demand for commercial vehicles, increasing vehicle prices, etc.

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Significant factors considered for taking a loan are credit score, car loan term length, annual percentage rate, income, car loan down payment, early payment penalty, types of lenders, etc.

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The benefit of the automotive loan is that repayment of the loan can be made in easy equated monthly installments (EMIs), which vary according to the customer, based on repayment tenure, and the interest rate charged by the lender.

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Some key players operating in the US 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. etc.

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