Status : Published Published On : Apr, 2024 Report Code : VRAT4072 Industry : Automotive & Transportation Available Format : Page : 166

Global Automotive Financing Market – Analysis and Forecast (2025-2030)

Industry Insights by Provider Type (OEMs, Banks, Other Financial Institutions), by Purpose Type (Leasing, Loan, Others), by Finance Type (Indirect, Direct), by Vehicle Type (Passenger Vehicle, Commercial Vehicle)

Industry Overview

The Global Automotive Financing Market was valued at USD 0.48 billion in 2023 and is expected to reach USD 5.8 billion by 2030, growing at a CAGR of 7.4% during the forecast period.

The growth of the global automotive financing market is primarily attributed to the rising need among users for high-quality products in the car and upgraded features and technologies. This has raised the demand for technologically upgraded cars and electric vehicles. As a result, there is a significant increase in the customer base at a high rate.

Moreover, the rise in investments in autonomous vehicles has also contributed to the growth of the global automotive financing market just as the prompt service and favorable finance schemes offered by banks, credit unions, and several other financial organizations have.

Over the years, users will invest more in research and development work in the automotive sector to ensure that the newer models come with enhanced features for convenience and safety. To make such investments, once again the role played by banks and other financial institutions is crucial, which pushes the global automotive financing market to grow.

Automotive Financing Market

Market Segmentation

Insight by Provider Type

According to the type, the global automotive financing market is segregated into banks, OEMs, banks, and other financial institutions. Among these segments, the banks play a significant role and therefore this specific segment is expected to contribute more to the market in terms of revenue in the forecast period. The lending process will be simplified further requiring fewer documents and steady procedures to avail finance.

Insight by Purpose Type

Depending on the purpose type, the global automotive financing market is divided into loans, leases, and others. Out of these segments, the leasing segment is expected to grow at a higher CAGR than others during the forecast period. This is because the millennial generation considers leasing as a much more viable option than purchasing a product.

Insight by Vehicle Type

Based on the vehicle type, the global automotive financing market is segmented into passenger vehicles and commercial vehicles. Out of them, the commercial vehicles segment is expected to contribute more to the market during the forecast period due to their high cost as well as the easy access offered to the clients to avail of different financial schemes.

Insight by Finance Type

On the basis of finance type offered, the global automotive financing market is bifurcated into the direct segment and the indirect segment. Out of these two the direct finance segment typically contributes higher revenue to the market because consumers who fulfill the requirements prefer taking direct loans from banks and financial unions. These funding sources are far more secure for them since they have better control over the lending process.

However, the indirect finance segment will grow at a higher rate during the forecast period because independent financial experts offer instant guidance to the consumers who can take the best advantage of it. Consumers can search for several loans at once and compare them to decide on the best way to finance their vehicle.

Global Automotive Financing Market Report Coverage

Report Metric


Historical Period

2018 - 2023

Base Year Considered


Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  USD 0.48 billion Billion

Revenue Forecast in 2030

U.S.D.  USD 5.8 billion Billion

Growth Rate


Segments Covered in the Report

By Provider Type, By Purpose Type, and By Vehicle Type

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Industry Dynamics

Industry Trends

One of the most significant trends observed in the global automotive financing market is the notable digitalization progressions in blockchain technology. In addition, the availability of a wide range of online services along with extensive use of superior telematics are also noticed in this market. Higher car financing penetration and the rising prices of cars and interest rates are also some notable trends that will urge people to go for monthly loan payment schemes. All these emerging trends are helping to grow the customer base, and thereby the growth of the global automotive financing market.

Growth Drivers

There is a widespread demand for electric vehicles among consumers today, which is the prime factor for the growth of the global automotive financing market. Another significant reason for the market growth is the growing investments in autonomous vehicles these days. The wide range of benefits offered by electric vehicles apart from being environmentally friendly is the main reason behind their widespread popularity and rise in sales figures. The high cost of electric vehicles in comparison to traditional vehicles also encourages people to avail of different finance schemes, which, in turn, pushes the market growth. The rates of interest for loaning are much lower which encourages users to avail auto loans and push the global automotive financing market upward. Moreover, a large variety of options is offered along with longer loan terms that reduce monthly payments also increase the demand for such loans. Thanks to the technological developments, the automobile industry will expand significantly in the following years and therefore the global automotive financing market will also grow in parallel due to rising demand for auto loans among consumers. Higher disposable income among people, rapid urbanization that needs better, faster, and safer transportation for daily commuting, lucrative promotional offers and incentives by the manufacturers and financial institutions, rising ownership preference among people, favorable government policies, and subsidies, and lower downpayment requirements are a few other significant factors that drive the growth of the global automotive financing market.


There are a large number of competitors in the market and the growing competition among them during the forecast period will hinder the growth of the global automotive financing market to some extent. However, technological advancements and marketing efforts are creating more opportunities for the market to grow.

Geographic Overview

Europe is the largest contributor to the global automotive financing market and its growth is attributed to the growing number of finance service providers in the region. These service providers offer a wide range of services such as insurance, maintenance, and fleet services. Moreover, the growing awareness among people regarding the diverse range of finance schemes is also a factor that contributes to the growth of the automotive financing market in this region.

However, the Asia-Pacific region is expected to grow at a high CAGR during the forecast period due to the rise in consumer interest by different efforts made by the governments of countries like India, China, and Japan. Moreover, there is an increase in the number of automobile showrooms along with used car outlets are also pushing the global automotive financing market northward.

Competitive Insight

Key players in the automotive financing market are catering to the demand for these devices by investing in technologically advanced products in their product portfolios across the globe. They are availing their service via online channels and are attributing their efforts towards availing special loan packages to the customers. Furthermore, the companies are making coalitions with car rental companies and transportation companies to extend their market base.

Some of the major players operating in the global automotive financing market are Bank of China, Mercedes-Benz Financial Services,  Toyota Financial Services, Hitachi Capital Asia Pacific, Bank of America, Volkswagen Finance, Banquo Bradesco Financiamentos, BNP Paribas,   Ally Financial, Wells Fargo,  Industrial and Commercial Bank of India, HSBC, Capital One, and HDFC Bank.

Recent Developments by Key Players

The financing arm of auto maker Volkswagen Group is planning to return to the German Schuldschein debt market, which has both loan and bond features. Volkswagen Financial Services AG has assigned HSBC to help arrange the financing, according to people familiar with the matter, who asked not to be identified because the information is private.

Bank of America has introduced new digital capabilities to support consumers in their car shopping and financing. Bank of America clients shall get prequalified for auto financing to understand how much they may be able to borrow and estimate their terms, all with no impact to their credit scores. 

Forecast Parameters

  • Identifying variables and establishing market impact.
  • Establishing market trends regionally.
  • Analyzing opportunities and market penetration rates by understanding product commercialization, and regional expansion.
  • Analyzing demand and supply trends and changes in industry dynamics to establish future growth.
  • Analyzing sustainability strategies adhered to by market participants in an attempt to determine the future course of the market.
  • Analyzing historical market trends and super-imposing them on the current and future variables to determine year-on-year trends.
  • Understanding adoption, production, export, import, and regulatory framework.

Data Validation

  • Estimated and forecasted data was validated through industry experts.
  • Apart from industry experts, data triangulation methods were used for validation.
  • The bottom-up and top-down approaches have been used for the estimation and forecast of market data, whereas the top-down approach was used for validation.
  • Demand, as well as supply-side surveys, were conducted to understand the industry dynamics and data validation.

Primary Research

VynZ Research conducts extensive primary research to understand the market dynamics, validate market data, and have key opinions from industry experts. The key profiles approached within the industry include, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end user surveys comprising of consumers are also conducted to understand consumer behavior.

The Automotive Financing Market report offers a comprehensive market segmentation analysis and estimates for the forecast period 2025–2030.

Segments Covered in the Report

  • Provider Type
    • OEMs
    • Banks
    • Other Financial Institutions
  • Purpose Type
    • Leasing
    • Loan
    • Others
  • Finance Type
    • Indirect
    • Direct
  • Vehicle Type
    • Passenger Vehicle
    • Commercial Vehicle

Geographical Segmentation

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Rest of the World (RoW)
    • Brazil
    • Saudi Arabia
    • South Africa
    • U.A.E.
    • Other Countries

Automotive Financing Market Size

Source: VynZ Research

Automotive Financing Market Analysis

Source: VynZ Research

Frequently Asked Questions

Based on vehicle type, commercial vehicles are anticipated to generate larger revenue by 2030.
On the basis of provider type, banks segment is expected to generate largest revenue by 2030.
Europe was the largest automotive financing market in 2023.
Excessive competition observed between the key players in this market is the key factor that is anticipated to hinder the growth of global automotive financing market.
Extensive trend of digitalization progressions in blockchain technology along with excessive use of superior telematics and online services are the key trends observed in the global automotive financing market.

Place an order

Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle


Key Takeaways