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
- Slides: 80
- January 2023
- Total Views:1441
- Region : Asia
- Ken Research
- On-Demand Report
About the Report
About the Report
The report provides a comprehensive analysis of the potential of Australia car finance market. The report covers an overview and genesis of the industry, market size in terms of number of products sold and revenue generated.
Its market segmentations include by Category of Vehicles, By Ownership of Vehicles, By Category of Lenders, By Loan Tenure; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.
According to Ken Research estimates, the Australian car finance market – which grew from approximately ~% in 2018 to approximately ~% in 2023P – is forecasted to grow further into ~% opportunity by 2028F. The Australian car finance market contributed to a global growth rate of ~%. With changing consumer preferences and preferred car models offered by companies, consumers are shifting towards car financing models to maintain their financial stability and own a car that can be easily financed over longer and shorter term EMI.
- Changing consumer preferences and ease of owning a pre-owned car at a much more affordable price have provided significant traction to the market.
- 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.
- In February 2022, The Australian Government announced its investment of $ 6.1 Mn to accelerate the JET Charge's roll-out of electric vehicle charging infrastructure which has been a key challenge hindering electric vehicle adoption in the region.
Key Trends by Market Segment:
By Ownership of Vehicles: 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.
By Category of Vehicles: With changing passenger vehicle landscape in Australia, in August 2022 Bank Australia shall stop giving the loans for IC engine model cars from 2025. The banks in Australia will only finance the hybrid and electric vehicles in order to take the country towards green economy. Considering these factors and developments, demand for passenger sales financing is expected to witness high growth rate during the forecast period.
In Australia Car Finance Market there are about ~ players operating in the overall market, and top players accounted ~% share in the market in terms of revenue. Australia Car Finance market is fragmented in nature. The major parameters on which these players complete includes loan tenure, rate of interest, ease of loan procurement and affordable down payments. Key major players include Toyota Finance Australia Limited, National Australia Bank Limited, Australia and New Zealand Banking Group Limited, Commonwealth Bank, Car Clarity etc.
During the forecast period of 2023-2028, it is anticipated that the car finance market in Australia will grow at a CAGR of ~%, leading to consumption of ~ tons by 2028F. Major players account for a considerable percentage of online sales in the region and actively participate in providing easy loans and reducing customer hassle to gain more market share in future. Car finance loans are continuing to rise in Australia post covid. Moreover, this has triggered the demand for financing a car based on down payments and paying rest amounts in the form of monthly EMI.
Scope Of The Report
Scope of the Report
By Category of Vehicles
By Ownership of Vehicles
By Category of Lenders
By Loan Tenure
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report
- Existing Auto Finance Companies
- OEM Dealerships
- Captive Finance Companies
- Credit Unions
- Private Finance Companies
- New Market Entrants
- Government Organizations
- Auto mobile Associations
- Auto mobile OEMs
Time Period Captured in the Report
- Historical Year: 2018-2023P
- Base Year: 2023P
- Forecast Period: 2023P– 2028F
Major Players Mentioned in the Report
- 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
- Zoom Car Loans
- Fingo Finance
- Commonwealth Bank CBA
Table of Contents
Table of Contents
1. Executive Summary
1.1 Executive Summary – Australia Auto Finance Market
1.2 Australia Auto Finance Industry Market Flow Chart
2. Country Overview
2.1 Executive Summary (Country Demographics, Major Industries, Trade Scenario, GDP, Geographical Location)
2.2 Demographic Analysis of Car Buyers in Australia
3. Australia Automotive Industry
3.1 Australia Automotive Market Overview
3.2 Australia Automotive Market Future Projections
3.3 Australia Automotive Market Import and Export Scenario
3.4 Australia Automotive Market Major OEM Players basis Passenger Car Sales
4. Australia Automotive Finance Industry
4.1 Australia Automotive Finance Ecosystem (Banks, Dealerships, NBFCs)
4.2 Australia Auto Finance Market Evolution
4.3 Australia Auto Finance Market Value Chain Analysis
4.4 Australia Auto Finance Industry Market Overview (Loan Outstanding)
4.5 Australia Auto Finance Industry Market Overview (Credit Disbursed)
4.6 Market Segmentation basis Type of Cars Financed (New car, Used Car)
4.7 Market Segmentation basis Type of Institution (Banks, Finance Companies and Others)
4.8 Issues and Challenges in the Industry
4.9 Trends and Developments in the Industry
4.10 SWOT Analysis of the Industry
4.11 Government Policies Affecting the Industry
4.12 Major Types of Car Loans Available in the Industry (New Car Loan, Used Car Loan, COE Financing, Direct Hire Purchase)
4.13 Decision Making Parameter for Selecting Car Loan Vendor
4.14 COVID Impact on the Australia Auto Finance Industry
5. Australia Automotive Finance Aggregator Market
5.1 Australia Automotive Finance Aggregator Market Overview
5.2 Impact of Aggregator Platforms on Various Financial Institutions
6. Australia Automotive Finance Competitive Analysis
6.1 Australia Automotive Finance Competition Overview
6.2 Australia Auto Finance Market Players Cross Comparison (Establishment year, Headquarters, Branches, Interest Rates, Service Offering, Partners, Number of Employees, Lone Tenure, Recent Trends and more)
7. Australia Auto Finance Major Players Company Profiles (Banks)
8. Australia Auto Finance Major Players Company Profiles (NBFCs)
9. Australia Automotive Finance Market Future Analysis
9.1 Australia Auto Finance Market Future Projections (Loan Outstanding)
9.2 Australia Auto Finance Market Future Projections (Credit Disbursed)
9.3 Market Segmentation Future Projections Basis Type of Cars Financed (New car, Used Car)
9.4 Market Segmentation Future Projections Basis Type of Institution (Banks, Finance Companies and Others)
10. Analyst Recommendations
10.1 Analyst Recommendations for Auto Finance Players
10.2 Analyst Recommendations for Car Buyers in Australia
11. Definitions & Research Methodology
11.1 Market Definitions and Assumptions
11.3 Market Sizing Approach
11.4 Consolidated Research Approach
11.5 Sample Size Inclusion
11.6 Limitation and Future Conclusion
Step 1: Identifying Key Variables: Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step 2: Market Building: Collating statistics on car finance market over the years, to compute the revenues generated by the online market. We also understood the price points of various services offered.
Step 3: Validating and Finalizing: Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.
Step 4: Research output: Our team will approach multiple finance providing channels and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from car finance providers.For any queries related to research methodology, click here to schedule a call with our analysts
Frequently Asked Questions
Frequently Asked Questions
What is the Study Period of this Market Report?
The Australia Car Finance Market is covered from 2018–2028F in this report, including a forecast for 2023P-2028F.
What is the Future Growth Rate of the Australia Car Finance Market?
The Market is expected to witness a CAGR of ~% over the next years.
What are the Key Factors Driving the Australian Car Finance Market?
A low interest rate, Low or no fees offering, and Repayment flexibility is driving the market.
Can Consumers refinance their car loan to a better rate in Australian Car Finance Market?
Yes, in many situations you will be able to refinance your car loan to another lender. However, you’ll have to weigh up whether it’s worthwhile. While you may be able to reduce your repayments by switching to a loan with a lower rate, you’ll need to factor in the costs of switching, including any exit or break fees with your existing lender or application fees with your new lender.
Who is the leading lender in the Australian Car Finance Market?
National Australia Bank Limited, The Australia and New Zealand Banking Group Limited, Toyota Finance Australia Limited etc. are the major lenders.
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