Lower down payment requirements, growth of Fintech companies, increased sale of new and used cars have aided the demand for car finance in Indonesia.
The report titled “Indonesia Car Finance Market by Type (New and Used Passenger and Commercial Cars), by Tenure of Loan, by Banks, Captive and Non Captive Institutions – Outlook to 2021” by Ken Research suggested a robust CAGR of 7.8% in credit disbursement of the Indonesia car finance market by 2021 with growing new and used car sales and increasing car finance penetration rate driving the loan disbursement in the future.
Indonesia car finance market is in the growing stage. It is dominated by the unorganized players as they offer simpler documentation and convenient car finance options. The market has witnessed increasing use of technology such as simulation tools, online application and payment methods and others. In order to stimulate the economic growth of the country, Otoritas Jasa Keuangan (OJK) reduced the down payment requirements in effect increased the Loan to value ratio in 2015. Indonesian consumers who use credit to purchase a passenger car need to pay a minimum down payment limit of 25% from 30% in 2014.
Recovery of Indonesian economy, lower financing rates and improved business environment has positively impacted the consumer confidence index of Indonesia. This has resulted in increasing number of cars financed by banks and other non financial institutions. Easing inflation rates and increasing purchasing power has further supported the consumer confidence index. With the success of new car models by major players in the Indonesia automotive industry, the number of new cars sold increased by 4.8% in 2016 from 1,013,291 in 2015 to 1,061,859 in 2016. The major players which include Toyota, Honda and Daihatsu have accounted for 83.6% of the passenger car sales market in 2016. The low cost green car has witnessed the fastest growth during 2016 which accounted for 20.7% of the total manufactured cars. Furthermore, Indonesia’s premium gasoline and diesel fuel prices declined by IDR 500 per liter which is a lagged effect of on sliding international crude oil prices that occurred in Q4-2015.
Recent times have witnessed rising internet penetration and the use of online portals such as Carmudi, OLX and Mobil88 for selling used cars which have streamlined this market. There is more transparency in the market and buyers have a wide variety of brands and models to choose from the convenience of their home. The used car market sale has increased by 4% during 2016 from 960,000 in 2015 to 1,000,000 in 2016. This has further augmented the amount of car loan disbursed in the economy.
Key Topics Covered in the Report:
Used Car Sales in Indonesia
Top Indonesia Car Loans Banks
Indonesia Average Loan Rate
Auto loan Industry in Indonesia
Used Car Financing in Indonesia
Interest Rate Car Loan in Indonesia
Compare Auto Loans in Indonesia
Used Car Sales in the Indonesia
Vehicle Financing in Indonesia
New Car Sales in Indonesia
For further reading click on the link below:
Related Reports by Ken Research
Ankur Gupta, Head Marketing & Communications
Tags: Applying Car Loan in Indonesia, Auto and Car Loans in Indonesia, Auto Classified Portals in Indonesia, Auto Finance Opportunities in Indonesia, Auto loan Industry in Indonesia, Auto Loans Market in Indonesia, Auto Loans Terms and Conditions in Indonesia, Captive Market Share Auto Finance, Car Finance Dealers in Indonesia, Car Financing Option in Indonesia, Car Loan Market Competition Indonesia, Car Loans Indonesia Bank Share, Car Loans Indonesia Top 5 Banks, Car Loans Industry in Indonesia, Car Payment or Car Loan Decision Indonesia, Compare Auto Loans in Indonesia, Competition Indonesia Car Loan, Finance the Car in Indonesia Process, Financing a Used car in Indonesia, Financing Schemes Car Loans Indonesia, Future Strategies Indonesia Car Loan, Growth Trend Car Loan Indonesia, Indonesia Auto Loan Disbursal, Indonesia Auto Loan Industry, Indonesia Auto Loan Market, Indonesia Average Loan Rate, Indonesia Car Credit Market Future, Indonesia Car Financing Market, Indonesia Car Loan Industry, Interest Rate Car Loan in Indonesia, Islamic Banks Indonesia Car Loan Market, Loan Disbursed Cars in Indonesia, Market Share Car Finance Indonesia, New and Used Car Financing in Indonesia, New Car Loan Market Indonesia, New Car Sales in Indonesia, Passenger and Commercial Vehicles Sales in Indonesia, Top Indonesia Car Loans Banks, Used Car Financing in Indonesia, Used Car Sales in Indonesia, Used Car Sales in the Indonesia, Vehicle Financing in Indonesia