Global

Details

  • Industry: Automotive
  • Type: Survey report
  • Date: 9/24/2012

Finance and leasing landscape: United States 

Finance and leasing landscape: US

The US is a mature and highly fragmented market, where the automotive market recovery will continue to drive financing growth. Captives dominate the new car market and banks own the largest share of the used car financing market. The greatest opportunities in this market lie in the development of new mobility services and the expansion of banking services through a full banking license.

Market structure and business environment in the US

Solid market potential

  • In general a positive outlook for automotive finance and leasing due to high financing mentality within the US
  • Highly fragmented market
  • The top 20 lenders account for seventy-five percent of the market
  • New car financing dominated by captives - used car financing dominated by banks

Well established regulatory rules and refinancing tools

  • Periodic renewal of license required
  • Federal Reserve Bank places general finance license
  • Securitization representing a substantial portion of funding mix

Moderate Risk potential

Risk potential - US


Business characteristics of US finance and leasing market

  • Very well established captives business model with a broad service portfolio
  • Very high customer acceptance
  • Private customers account for ninety percent of cars financed or leased with an increasing demand towards leasing
  • Company cars represent twenty-one percent and seventeen percent respectively of the finance and leasing contracts, almost equal, and are continuously developing

Key Findings: Evaluating future financing and leasing growth in the US

Traditional F & L services
Financing Services - Enlarge product portfolio to used cars
Leasing Services - Maintain current offerings
SERVICES
Additional vehicle services - Provide sophisticated products, expand fleet management
Green mobility - Invest in the green agenda
New mobility solutions - Invest in car-sharing
BANKING
Additional banking services - Introduce basic products to increase customer retention
Full banking activities – Obtain full banking license


High

 

Low

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automotive finance and leasing

About the study

Global automotive finance and leasing: The role of product diversification and emerging markets in future growth is based on desk research and in-depth interviews with senior executives representing key leasing and financing participants including banks, captives and independent auto leasing and financing organizations from China, France, Germany, India, Japan, Russia and the UK.

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