Global

Details

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

Finance and leasing landscape: Western Europe 

Finance and leasing landscape: Western Europe

Western Europe is a highly competitive and cluttered market where captives dominate. With cars sales expected to increase modestly, the growth in this market is expected to come from additional banking services, new mobility services and insurance offerings.

Market structure and business environment in Western Europe

Solid market potential

  • Car sales projected to increase slightly
  • Southern Europe is very instable
  • Development of the financial crisis/ Euro crisis will have a major impact on the further development
  • Captives hold a strong market position, e.g.
    • UK market share of captives seventy percent
    • German market share of captives sixty-eight percent
  • Highly competitive market with huge number of players

Well established regulatory rules and refinancing tools

  • Business friendly market with strong oversight and regulation of the licensing regime
  • Registration at the national banking of finance service authority necessary
  • Wholesale and unsecured debt, deposits, bonds as well as ABS transactions are very common sources for refinancing

Moderate Risk potential

Risk potential - Western Europe


Business characteristics of Western Europe finance and leasing market

  • Very well established captives business model with a broad service portfolio including sophisticated banking products
  • Very high customer acceptance
  • Private customers account for fifty to seventy percent of new cars and are financed or leased in most European countries
  • Fifty-five percent of company cars are leased with operational leasing arrangements dominating

Key Findings: Evaluating future financing and leasing growth in Western Europe

Traditional F & L services
Financing Services - Enlarge product portfolio to used cars
Leasing Services - Maintain current offerings
SERVICES
Additional vehicle services - Expand insurance business and leasing
Green mobility - Invest in the green agenda
New mobility solutions - Provide comprehensive mobility solutions
BANKING
Additional banking services - Increase cross selling and cross over opportunities
Full banking activities – Use banking activities for home financing


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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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