US used car loan market to grow at double-digit CAGR through 2026: TechSci Research

According to the TechSci report on “The Used Car Loan Market in the United States by Vehicle Type (Hatchback, Sedans, SUV) by Financier (OEM, Banks, NBFC) by Percentage of Amount Sanctioned (up to 25% , 25-50%, 51- 75%, above 75%) by seniority (less than 3 years, 3 to 5 years) by region, competition forecasts and opportunities, 2026 “, the US car loan market Used car loan market has shown promising growth in the historic years through 2019 and is expected to continue growing over the next forecast years 2021 to 2026. The used car lending market in the United States owes its growth to factors such as increased demand from used car owners.In addition, increasing disposable income among the young population and changing lifestyle standards are expected to keep the market growing towards growth. constant in the years to come. In addition, the government is expanding aid and funding agencies are offering viable and affordable loan programs and plans that are easier to repay and at low interest rates, thus supporting the growth of the US used car loan market over the past five years. coming years.

Used car loans are the financial aid and support that finance organizations provide to future consumers on certain interest rates. These sanctioned loans are specifically for used cars, due to the fact that used cars have inferior durability, viability, and other related factors that are taken into account. The prices of used cars are lower than those of the original models and therefore are often charged at lower interest rates in comparison.

The US used car loan market is segmented by vehicle type, financiers, percentage of amount sanctioned, tenure, competitive landscape, and regional distribution. Based on the percentage of the amount sanctioned, the market is further segmented into up to 25%, 25 to 50%, 51 to 75%, above 75%. For used cars, finance agencies often provide loans based on the age of the car, the conditions and viability of the vehicle, etc. With these factors in mind, funders decide how much percentage of the prize can be loaned. to a consumer to buy the car. In most cases, getting up to 25% of the loans sanctioned for purchase is fairly easy. Therefore, based on a percentage of the sanctioned amount, up to 25% of the total amount is more viable and is expected to hold the largest market shares over the next five years. The 25-50% range also holds significant revenue shares of the market segment. However, obtaining a loan by paying more than 75% of the total cost is often impossible or requires very special cases. However, consumers such as government officials and the families of the country’s martyrs can avail themselves of these privileges.

Based on the type of vehicle, the market is further divided into hatchbacks, sedans and SUVs. Hatchbacks are expected to hold the largest revenue shares in the market and assert their dominance in the market over the next five years. The growth of the market can be attributed to the surge in demand for mid-size cars. In addition, the insurance costs and depreciation costs of hatchback cars are lower, and therefore the market segment experiences impressive growth over the next five years. SUVs are also expected to hold significant market segment shares due to the growing demand for luxury cars and their affordability as a used car.

Holding the largest shares of the used car loan market in the United States, a partial list of major market players includes ICICI Bank, Ally Financial Inc., The Bank of America Corporation, Capital One Financial Corporation, The Ford Motor Company, General Motors Financial Company, Inc., JPMorgan Chase & Co., American Honda Finance Corporation, Pentagon Federal Credit Union, Toyota Motor Credit Corporation, among others. The presence of several organized market players created a difficult market scenario for new market players. In addition, automakers offer their financing services, or they have certain links with banks, or NBFCs, to provide broader options to consumers. Although the NBFC used car loan sanctioning process is much more achievable for consumers than auto manufacturer financing solutions.

“The United States is the most penetrated market in the North American region. Due to the presence of the high number of market players in the country, the market players are very competitive and are constantly involved in the feasible and affordable loan programs for the consumers. With the growing number of cheap interest rates and better programs with delayed loan repayment terms, market players are satisfying consumers with the affordability of the car in their pocket. New market players can focus on the best schemes to establish themselves in the market over the next five years of the future market, ”said Mr. Karan Chechi, research director at TechSci Research, a global consulting firm. research-based management.

“Used car loan market in the United States by type of vehicle (hatchback, sedans, SUV) by financier (OEM, banks, NBFC) by percentage of amount sanctioned (up to 25%, 25-50%, 51-75%, above 75%) By seniority (less than 3 years, 3 to 5 years) by region, competition forecast and opportunities, 2026 ”assessed the future growth potential of the car loan market. opportunity in the United States and provides statistics and information on the size, structure and future market of the growth market. The report aims to provide cutting edge market insights and help policymakers make sound investment decisions. In addition, the report also identifies and analyzes emerging trends as well as key drivers, challenges and opportunities in the United States used car loan market.


Source link