The global automotive finance market size is expected to reach USD 394.06 billion by 2028. It is expected to expand at a CAGR of 7.0% from 2021 to 2028.
Numerous customers across the globe are checking lending rates and auto prices online to find the financing firms that offer the best deals. This, as a result, the market is aggressively competitive and an ultra-transparent in nature.
Customers who are looking out for a new car seek lenders who have transparent financing practices and user-friendly websites. Auto loan providers are focusing on offering streamlined and simple online financing environments to their customers. These providers are widely adopting Loan Origination Software (LOS) and online systems for effectively structuring loans for their customers.
Numerous automotive finance businesses are upgrading their LOS systems to efficiently support automated decisions. Using LOS systems, lenders benefit from faster response and processing times. Moreover, loan structuring and automated decision enable them to deny or approve online applications within minutes.
Automotive finance businesses are focusing on using machine learning and artificial intelligence tools to structure used and new auto loans more accurately. Furthermore, lenders can easily leverage these innovative technologies in the cloud with the help of LOS vendors. Machine learning and artificial intelligence enable auto lenders to calculate risk and identify perfect borrowers with more accuracy.
Automotive Finance Market Report Highlights
- The banks' segment is expected to witness significant growth over the forecast period as banks offer secure financing to their customers. Banks also offer customers with the facility to apply for preapproval. This facility helps customers in comparing estimated loan offers
- Numerous customers across the globe prefer direct auto loans as they can easily access and get loans from credit unions, banks, and other loan lending companies
- Customers are focusing on adopting the leasing model as it is a more flexible model in comparison to others for new, shared, and used vehicles that could comprise services such as insurance
- The number of passenger vehicles that include pickup trucks and crossovers on the road continues to rise across the globe, thereby creating growth opportunities for the passenger vehicles segment over the forecast period
- The presence of many prominent automotive finance providers in the European region and the adoption of innovative tools, such as biometrics, e-contracts, and machine learning, is expected to drive the regional market growth over the forecast period
- Ally Financial
- Bank of America
- Capital One
- Chase Auto Finance
- Daimler Financial Services
- Ford Motor Credit Company
- GM Financial Inc.
- Hitachi Capital
- Toyota Financial Services
- Volkswagen Financial Services
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