Focus on changing consumer preferences, preferred car models, lowered GDP growth rate, reasonable rate of interest and loan tenure in the market are major factors contributing towards development of Car Financing in Australia.
COVID-19 impact analysis: The car finance industry has recorded continuous investments for its developments and has become a massive contributor to the economic growth. However, this industry has been largely affected, owing to the outbreak of the COVID-19 pandemic leading to economic instability. In addition, owing to increase in unemployment & uncertainty in income results in lower demand and postponement of new car purchases or lease during the pandemic situation. Moreover, shortage in supply of raw materials and logistics has tremendously disrupted the supply chain of automotive new product launches, which, in turn, has led to the disruption in the market growth.
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Competitive vehicle financing solutions: The motor vehicle finance industry by no means relies solely on car sales. Ancillary services, which include things like sale of spare parts, after-sale services (such as ongoing servicing) and the sale of insurance make up a large portion of the industry’s profitability. As does vehicle financing. According to ASIC, car dealers have two main sources of finance-related income from a sale. Firstly, financial benefits from lenders, including commissions for individual loans, volume bonuses and ‘soft dollar benefits’ – benefits received other than a basic cash commission or direct client fee and charging the consumer a dealer origination fee for assisting in the provision of finance.
Increasing demand for Used & New Cars in Australia: In Australia, changing consumer preferences and ease of owning a pre-owned car at a much more affordable price have provided significant traction to the market. Australia is an emerging economy with lowered GDP growth rate, people have low purchasing power. Used vehicle financing helps people to own a personal vehicle at the much-lowered price at affordable EMI installments. This reduces the burden of one-time payments just with a 30% initial down payment. Used vehicle dealers and OEMs now offer with better maintenance plans, longer life services and effective discounts which has helped key OEM to engage the consumers attention. OEM, financier thus offer reasonable rate of interest and loan tenure which has helped people to reduce financial burden.
Analysts at Ken Research in their latest publication “Australia Car Finance Market Outlook to 2028F- By Category of Vehicles (Passenger Vehicles, Commercial Vehicles), By Ownership of Vehicles (New Vehicles, Used Vehicles), By Category of Lenders (NBFCs, Universal and Commercial Banks, Captives), By Loan Tenure (12-24 Months, 25-48 Months.” by Ken Research observed that Australia Car Finance Market is in the growing phase. Enhancing Service Offerings, collaborations with partners, expand pipeline with predictive analysis and getting in front of prospects through AI are some of the factors that will contributed to the Australia Car Finance market growth over the period of 2021-2026F. It is expected that Australia Car Finance Market will grow at a CAGR of ~% for the above forecasted period.
Key Segments Covered in the report
Australia Car Finance Market
- By Category of Vehicles
- Passenger Vehicles
- Commercial Vehicles
- By Ownership of Vehicles
- New Vehicles
- Used Vehicles
- By Category of Lenders
- NBFCs
- Universal and Commercial Banks
- Captives
- By Loan Tenure
- 12-24 Months
- 25-48 Months
- 49-60 Months
Key Target Audience
- Existing Auto Finance Companies
- Banks
- OEM Dealerships
- Captive Finance Companies
- Credit Unions
- Private Finance Companies
- New Market Entrants
- Government Organizations
- Investors
- Auto mobile Associations
- Auto mobile OEMs
Time Period Captured in the Report:
- Historical Period: 2018-2023P
- Base Period: 2023P
- Forecast Period: 2023P– 2028F
Companies Covered:
- Car Finance Australia
- National Australia Bank Limited
- The Australia and New Zealand Banking Group Limited
- Toyota Finance Australia Limited
- Auto Finance Australia
- LifeX Finance
- Car Clarity
- Simply Finance
- Journey Finance
- Car Loans.com.au
- C1 Car Loans
- Stratton Finance Melbourne
- Driva
- Zoom Car Loans
- Fingo Finance
Banks
- ANZ
- Commonwealth Bank CBA
- NAB
- Westpec
Key Topics Covered in the Report
- Australia Automotive Market Overview
- Ecosystem of Australia Car Finance Market
- Australia Car Finance Market Evolution and Business Cycle
- Australia Car Finance Value Chain Analysis
- Australia Car Finance Market by Credit Disbursed
- Australia Car Finance Market Segmentation, 2023P
- SWOT Analysis of Australia Car Finance Industry
- Infrastructure Development Overview of Australia
- Trends and Developments in Australia Car finance industry
- Decision Making Parameters for Selecting Car Loan Vendor
- Operational Strategies for Australia Car Finance Services Market
- Issues and Challenges in Australia Car Finance Industry
- Government policies affecting the Australia Car finance Industry
- Government Initiatives for Automotive Industry
- Growth Drivers of Australia Car Finance Market
- COVID Impact on the Australia Car Finance Industry
- Australia Car Finance Market Competition Overview
- Cross Comparison of Major Players in Australia Car Finance Market
- Strengths and Weakness of Major Players in Australia Car finance market
- Future Outlook and Market Projections, 2028F
- Best Practices for Building a Successful Car finance company
- Analyst Recommendations
- Industry Speaks
- Research Methodology
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