Consumer Automotive Financial Services in Mexico investigates the market for
automotive financial services linked to sales of new and used passenger cars
in Mexico. In addition to analysing the market for finance and leasing
services, the study also covers creditor insurance, motor insurance and road
assistance, and demonstrates the extent to which a market exists for extended
warranties and GAP insurance. Using survey results for average take-up rates
for finance and leasing propositions at the point of sale, data for the size
and growth of the automotive finance and leasing market for consumers in
Mexico is provided in terms of gross advances and assets leased for 2007 to
2011 with splits between finance for new and used cars and between finance
organised through dealerships at the point of sale and directly with banks or
other lending institutions. Moreover, also by means of data for average
take-up rates, the markets for creditor insurance, motor insurance, road
assistance, extended warranties and GAP insurance are sized in terms of gross
written premiums and other revenues sold through the automotive trade (i.e.
Via dealers and manufacturers) in 2011. These are broken down between new and
used cars and between new contracts sold during 2011 and in-force business
sold in previous years but still being renewed in 2011. The report draws on
a survey of 80 leading car dealerships as well as an analysis of the approach
to consumer automotive financial services of over 30 automotive brands in
Mexico. The PartnerBASE™ database that accompanies the report details
each of the marketing initiatives for consumer automotive financial services
traced by Finaccord for both dealers and manufacturers. Together, the report
and database will provide you with the definitive guide to current and future
opportunities in consumer automotive financial services in Mexico.
Table of Contents
Table of Contents
0.0 EXECUTIVE SUMMARY
1.0 INTRODUCTION
What is this report about?
The focus of the report is on financial services related to the sale of
passenger cars to individuals
Rationale
The provision of financial services is essential to support both car sales
and profitability
... with huge diversity in these services between countries and products...
... which have yet to be explored in detail
Methodology
Survey of dealers and manufacturers
Market data
Computation of market data is based on a complex set of assumptions and
variables...
...in order to provide market segmentations in unrivalled detail
Definitions
Finance and leasing products
Insurance, warranty and assistance products
Captive, internal and tied providers
Abbreviations
PartnerBASE™
Finaccord
2.0 MARKET ANALYSIS
Introduction
Passenger vehicle data
New car sales show a steep decline from which they have not yet recovered
while used car sales through dealers are only just showing signs of life
after a calamitous decade...
...as legal and illegal 'chocolate' cars imported from the US continue to
have a dramatic effect on sales
Nissan continues to hold the top position among individual brands...
...while US-based manufacturers continue to struggle
Market shares overall remain fairly steady against declining sales
Consumer automotive finance and leasing market
Market size and growth
Some type of financing is found in one third of private automotive sales
...while all types of financing have shown modest growth or slow decline
since 2007
Point-of-sale finance, especially for new vehicles, remains the core of
the market...
...while direct lenders are especially important for used cars
Types of finance and leasing product
The vast majority of finance involves simple loans...
...with only limited markets for finance or operating leases
Consumer automotive insurance, warranty and assistance markets
Market sizes
Motor insurance accounts for the lion's share of the combined market value
with other forms of insurance and assistance combining to form only 15% of
the market
Types of creditor insurance policy
Almost all creditor insurance includes cover for unemployment, disability
or both
Types of motor insurance policy
A lack of federal requirements for insurance means limited coverage for
the national parc
Automotive dealer survey
Provision of consumer automotive financial services
All dealers surveyed offer finance, motor insurance and road assistance
Number and nature of schemes
Manufacturers' policies dominate warranties and assistance market, but not
motor insurance
Consumer uptake of automotive financial services
Take-up rates for new vehicles substantially outstrip those for used
vehicles
Competitor dynamics: dealer partnerships
Finance and leasing: BBVA Bancomer is the largest external lender by a
significant margin
Creditor insurance: packaged with finance, this has a 100% take-up rate
where offered
Motor insurance: this is purchased from dealers with almost 60% of new cars
Extended warranties: only one in ten new car owners buys this cover at the
point of sale
Road assistance: free government aid impacts the sale of assistance
packages
Automotive manufacturer brand survey
Provision of consumer automotive financial services
Finance, motor insurance and road assistance are provided by all
manufacturers surveyed
Finance and leasing: over half of manufacturers use external finance
providers...
...while captive NR Finance is the single largest finance provider by
weighted share
Creditor insurance: one quarter of manufacturers use external partners
Motor insurance: the top three insurers hold 50% of the weighted
partnerships...
...with Inbursa potentially poised to make substantial inroads
Extended warranties: almost all manufacturers provide these themselves
Road assistance: again, manufacturers tend to organise this themselves
LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY 1
Key market data for consumer automotive financial services in Mexico, 2011
2
1.0 INTRODUCTION 3
Dealers contacted by Finaccord, segmented by manufacturer group
affiliation 4
2.0 MARKET ANALYSIS 6
Passenger car parc and new / used passenger car sales in Mexico, 2007 to
2011 8
Passenger car parc and new / used passenger car sales in Mexico, 2007 to
2011 (data) 8
New car registrations in Mexico, segmented by manufacturer brand, 2010 10
New / used passenger car finance market in Mexico, segmented by
distribution channel: volumes, 2007 to 2011 12
New / used passenger car finance market in Mexico, segmented by
distribution channel: values, 2007 to 2011 13
New / used passenger car finance market in Mexico, segmented by
distribution channel: values and volumes, 2007 to 2011 (data) 14
% split between the different types of finance and leasing contract sold
at the point of sale in Mexico, 2011 16
Total revenues from consumer automotive insurance, warranty and assistance
markets in Mexico, 2011 17
Total revenues from consumer automotive insurance, warranty and assistance
contracts in Mexico, 2011 (data) 19
% split between the different types of creditor insurance policy sold at
the point of sale in Mexico, 2011 20
% split between the different types of motor insurance policy sold at the
point of sale in Mexico, 2011 21
% of dealers in Mexico offering each type of automotive financial service,
2011 22
Average number of tied and non-tied schemes offered by dealers in Mexico
for each type of automotive financial service, 2011 24
Average number of tied and non-tied schemes offered by dealers in Mexico
for each type of automotive financial service, 2011 (data) 24
% of new and used car purchasers in Mexico acquiring each type of
automotive financial service at the point of sale, 2011 26
Provision of finance and leasing by dealers in Mexico, 2011: provision
rate, product sources and provider share of non-tied partnerships 28
Provision of motor insurance by dealers in Mexico, 2011: provision rate,
product sources and provider share of non-tied partnerships 30
Provision of extended warranties by dealers in Mexico, 2011: provision
rate, product sources and provider share of non-tied partnerships 32
Provision of road assistance by dealers in Mexico, 2011: provision rate,
product sources and provider share of non-tied partnerships 34
Comparison of the provision of each type of automotive financial service
by manufacturer brands and dealers in Mexico, 2011 36
Provision of finance and leasing by manufacturer brands in Mexico, 2011:
provision rate, operating models and weighted provider share of partnerships
38
Provision of creditor insurance by manufacturer brands in Mexico, 2011:
provision rate, operating models and weighted provider share of partnerships
40
Provision of motor insurance by manufacturer brands in Mexico, 2011:
provision rate, operating models and weighted provider share of partnerships
42
Provision of extended warranties by manufacturer brands in Mexico, 2011:
provision rate, operating models and weighted provider share of partnerships
44
Provision of road assistance by manufacturer brands in Mexico, 2011:
provision rate, operating models and weighted provider share of partnerships
46
Consumer Automotive Financial Services in Mexico published by Finaccord Ltd. in February 1, 2012. This report consists of 54 pages and the price starts from US $ 982.
