Worldwide passenger vehicle registrations are expected to rise by more than 91 percent between 2011 and 2027, doubling hence in volume. This growth is mainly driven by a surging demand in rapidly growing markets, such as China and India.
Despite a positive global outlook it should not be noted that the current financial crisis, especially in Southern Europe, might also influence the finance and lease business.
Automotive and banking industry are influencing the finance and leasing business
| Automotive Industry key issues |
 |
Banking Industry key issues |
- Overcapacity is prominent everywhere
- Changing business model
- Unclear technology roadmap
- Vehicle design will get adapt to environment
- Emerging markets further accelerate
|
- Limited access to financial markets
- High interest rates
- Insecurity of customers
- High rate of credit default
- Squeeze of sub- and non prime market
|
The global auto finance and leasing market remains quite diverse. Nevertheless, in most parts of the world consumers can finance their car purchases in one of three ways:
- an OEM captive,
- a commercial bank,
- an independent finance company.
|
The global auto finance and leasing market is dominated by three main routes to market |
| OEM captive |
|
Vehicle finance and leasing for private and corporate customers and dealers |
|
| Financing units wholly owned and operated by automotive companies |
|
- Vehicle finance and leasing packages
- Service and insurance products
- Fleet management
|
- Floorplan and inventory financing for dealers
- Direct banking, credit cards, commercial papers (with full bank license)
|
| Commercial bank |
|
Common banking business – some banks have dedicated business units for vehicle financing |
|
| Standard commercial bank |
|
- New car financing
- Used car financing
|
- Direct banking, credit cards, commercial papers
|
| Independent finance company |
|
Consumer financing or vehicle finance and leasing |
|
| Independent consumer finance or specialized vehicle leasing company |
|
Independent leasing companies
- Vehicle finance and leasing
- Service and insurance products
- Fleet management
|
Consumer financing companies
- Car loans and dealer financing
|
Back to top