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PUBLISHER: Blueweave Consulting & Research Private Limited | PRODUCT CODE: 1166205

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PUBLISHER: Blueweave Consulting & Research Private Limited | PRODUCT CODE: 1166205

United States Used Car Loan Market, By Vehicle Type ; Financier, Percentage of Amount Sanctioned, Tenure Trend Analysis, Competitive Market Share & Forecast, 2018-2028

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United States Used Car Loan Market to Grow at a CAGR of 10.0% during Forecast Period

United States Used Car Loan market is growing at a high CAGR because of the increasing cost of new car coupled with the start-ups entering the market. In addition, online platform advantages for customers to evaluate various models and pricing and technological advancement is driving the market.

A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the United States Used Car Loan market is projected to grow at a CAGR of 10.0%. The United States Used Car Loan market is booming because of the rising start-ups in the loan market coupled with the advantage of online platforms and, as well as the increased cost of a new car in the market. In addition, technological advancement is emerging as a significant driver of market expansion. However, consumers with long-term debts such as home loans have become a challenging factor for finance providers to execute loans may act as a restraining factor for the market growth.

Start-Ups in the Loan Market Coupled With the Advantage of Online Platforms and Increasing Cost of New Car Is Driving the Market

Start-ups entering the market to give customers more options have contributed to the continued growth of the used car market. Consumers are searching for more options when buying an automobile, which is one of the causes of this growth. From luxury to economy models, there are many various kinds of used cars available, and each has advantages and disadvantages of its own. Online platforms are one-way start-ups will profit from the used car market in 2022. These platforms make it simpler than ever for customers to evaluate various models and pricing while looking for the ideal car. Additionally, these platforms frequently provide financing alternatives that enable customers to purchase a car without having to go through a traditional dealer.

The rise in the cost of a new car in the market is an important factor in the increasing loan market growth of used cars in the United States. In addition, the rise in disposable income of consumers results in demand for car purchases. This, in turn, is anticipated to boost the growth of the used car loan market during the forecast period.

Technological Advancement Is Driving the Market

Used Car loan providers are concentrating on providing value-added services to their customers. By implementing technologies like artificial intelligence, business analytics, and blockchain, they are extending their current product & service offerings, which is expected to help improve service quality and raise customer satisfaction. Additionally, these technologies enable businesses to more precisely organize new and used auto loans. Therefore, it is anticipated that expanding current products & services through the application of new technologies would offer profitable chances for vehicle finance providers in the next years.

Consumers with Long-Term Debts Is Affecting the Market

Auto finance companies find it difficult to execute Used Car Loans when customers have long-term commitments, such as a home loan. As people who have long-term debt, it is quite possible they will not be able to repay the loan in the required time period. In addition, it was also seen that their loan has to turn into bad debt, which is a loss for the finance provider, be it a company or bank.

In this scenario, the finance provider faces a loss, and the consumer is unable to purchase the car, which limits the growth of the used car loan market in the United States.

Segmental Coverage by Tenure

The United States used car market is segmented by tenure into less than 3 years and 3-5 years. Most consumers prefer buying cars between 3-5 years old as, during this tenure, the car has validity and good conditions. As a result, 3-5 years of the used car hold a dominant position in the country. In addition to the fact that the older the car, the lesser the interest one has to pay is driving the market growth in the United States. However, less than 3 years used car also holds a substantial growth of the market.

Impact of COVID-19 on United States Used Car Loan Market

In the United States, the COVID-19 impact has large negative effects on auto lending, hurting both borrowers and lenders. The result will probably be a rise in existing loan defaults and a decrease in new loan issuance. Consumers in the United States rely extensively on auto financing, which has covered roughly three-fifths of their total vehicle purchase costs in recent years. According to the Federal Reserve Banks of Richmond, industry data show that the average loan amount is $20,446 for used vehicles, and the average loan term for used ones is 64.9 months. On average, a borrower makes $393 for used cars. However, the market is regaining from the pandemic and will see prominent growth during the forecast period.

Competitive Landscape

Key players operating in the United States Used Car Loan market are ICICI Bank, Ally Financial Inc., The Bank of America, The Ford Motor Company, Capital One Financial Corporation, American Honda Finance Corporation, General Motors Financial Company, Inc., JPMorgan Chase & Co., Pentagon Federal Credit Union, Toyota Motor Credit Corporation and other prominent players. In order to provide customers with more options, market players also provide their own financing options or have agreements with banks or non-bank financial companies (NBFCs) even though the procedure of sanctioning a used car loan from an NBFC is much more accessible for consumers than financing options from automakers.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the United States Used Car Loan market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the United States Used Car Loan market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

Product Code: BWC22555

Table of Contents

1. Research Framework

  • 1.1. Research Objective
  • 1.2. Product Overview
  • 1.3. Market Segmentation

2. Executive Summary

3. United States Used Car Loan Market Insights

  • 3.1. Industry Value Chain Analysis
  • 3.2. DROC Analysis
    • 3.2.1. Growth Drivers
      • 3.2.1.1. Surging Demand for Car Ownerships
      • 3.2.1.2. Increasing Government and Financing Bodies Aid
      • 3.2.1.3. Increasing Use of Online Platforms
    • 3.2.2. Restraints
      • 3.2.2.1. Financial Issues and High Competition
      • 3.2.2.2. Others
    • 3.2.3. Opportunities
      • 3.2.3.1. Technological advancements
    • 3.2.4. Challenges
      • 3.2.4.1. Increase in debts from various borrowers
  • 3.3. Technological Advancements/Recent Developments
  • 3.4. Regulatory Framework
  • 3.5. Porter's Five Forces Analysis
    • 3.5.1. Bargaining Power of Suppliers
    • 3.5.2. Bargaining Power of Buyers
    • 3.5.3. Threat of New Entrants
    • 3.5.4. Threat of Substitutes
    • 3.5.5. Intensity of Rivalry

4. United States Used Car Loan Market Overview

  • 4.1. Market Size & Forecast by Value, 2018-2028
    • 4.1.1. By Value (USD Million)
  • 4.2. Market Share & Forecast
    • 4.2.1. By Vehicle Type
      • 4.2.1.1. Hatchback
      • 4.2.1.2. Sedans
      • 4.2.1.3. SUVs
      • 4.2.1.4. Sports Utility Vehicles
      • 4.2.1.5. Multi-purpose Vehicles
    • 4.2.2. By Financier
      • 4.2.2.1. OEM
      • 4.2.2.2. Banks
      • 4.2.2.3. NBFCs
    • 4.2.3. By Percentage of Amount Sanctioned
      • 4.2.3.1. Up to 25%
      • 4.2.3.2. 25-50%
      • 4.2.3.3. 51-75%
      • 4.2.3.4. Above 75%
    • 4.2.4. By Tenure
      • 4.2.4.1. Less than 3 years
      • 4.2.4.2. 3-5 years

5. Competitive Landscape

  • 5.1. List of Key Players and Their Offerings
  • 5.2. Market Share Analysis, 2021
  • 5.3. Competitive Benchmarking, By Operating Parameters
  • 5.4. Key Strategic Development (Merger, Acquisition, Partnership.)

6. Impact of Covid-19 on United States Used Car Loan Industry

7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, SWOT, and Strategic Outlook) **

  • 7.1. ICICI Bank
  • 7.2. Ally Financial Inc.
  • 7.3. The Bank of America
  • 7.4. The Ford Motor Company
  • 7.5. Capital One Financial Corporation
  • 7.6. American Honda Finance Corporation
  • 7.7. General Motors Financial Company, Inc.
  • 7.8. JPMorgan Chase & Co.
  • 7.9. Pentagon Federal Credit Union
  • 7.10. Toyota Motor Credit Corporation
  • 7.11. Other prominent players

8. Key Strategic Recommendations

9. Research Methodology

  • 9.1. Qualitative Research
    • 9.1.1. Primary & Secondary Research
  • 9.2. Quantitative Research
  • 9.3. Market Breakdown & Data Triangulation
    • 9.3.1. Secondary Research
    • 9.3.2. Primary Research
  • 9.4. Breakdown of Primary Research Respondents, By Region
  • 9.5. Assumption & Limitation

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

Product Code: BWC22555

List of Figures

  • Figure 1 United States Used Car Loan Segmentation
  • Figure 2 United States Used Car Loan Market Value Chain Analysis
  • Figure 3 Company Market Share Analysis, 2021
  • Figure 4 United States Used Car Loan Market Size, By Value (USD Million), 2018-2028
  • Figure 5 United States Used Car Loan Market Share, By Vehicle Type, By Value, 2018-2028
  • Figure 6 United States Used Car Loan Market Share, By Financier, By Value, 2018-2028
  • Figure 7 United States Used Car Loan Market Share, By Percentage of Amount Sanctioned, By Value, 2018-2028
  • Figure 8 United States Used Car Loan Market Share, By Tenure, By Value, 2018-2028

List of Tables

  • Table 1 United States Used Car Loan Market Size, By Product Type, By Value, 2018-2028
  • Table 2 United States Used Car Loan Market Size, By Vehicle Type, By Value, 2018-2028
  • Table 3 United States Used Car Loan Market Size, By Financier, By Value, 2018-2028
  • Table 4 United States Used Car Loan Market Size, By Percentage of Amount Sanctioned, By Value, 2018-2028
  • Table 5 United States Used Car Loan Market Size, By Tenure, By Value, 2018-2028
  • Table 6 ICICI Bank Company Overview
  • Table 7 ICICI Bank Financial Overview
  • Table 8 Ally Financial Inc. Company Overview
  • Table 9 Ally Financial Inc. Financial Overview
  • Table 10 The Bank of America Company Overview
  • Table 11 The Bank of America Financial Overview
  • Table 12 The Ford Motor Company Company Overview
  • Table 13 The Ford Motor Company Financial Overview
  • Table 14 Capital One Financial Corporation Company Overview
  • Table 15 Capital One Financial Corporation Financial Overview
  • Table 16 American Honda Finance Corporation Company Overview
  • Table 17 American Honda Finance Corporation Financial Overview
  • Table 18 General Motors Financial Company, Inc. Company Overview
  • Table 19 General Motors Financial Company, Inc. Financial Overview
  • Table 20 JPMorgan Chase & Co. Company Overview
  • Table 21 JPMorgan Chase & Co. Financial Overview
  • Table 22 Pentagon Federal Credit Union Company Overview
  • Table 23 Pentagon Federal Credit Union Financial Overview
  • Table 24 Toyota Motor Credit Corporation Company Overview
  • Table 25 Toyota Motor Credit Corporation Financial Overview
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Christine Sirois

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