UK Auto Loan Market Share, Trends, Revenue, Growth Drivers, Demand, Scope, Challenges and Future Investment Opportunities Till 2033

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UK Auto Loan Market Share, Trends, Revenue, Growth Drivers, Demand, Scope, Challenges and Future Investment Opportunities Till 2033: SPER Market Research


 Category : BFSI

 Published: Jul-2024
 Author: SPER Analyst


United Kingdom Auto Loan Market is projected to be worth USD 135.02 billion by 2033 and is anticipated to surge at a CAGR of 4.7%.

Automobile loans are a type of financing offered by banks and government agencies that let customers buy a car without having to pay the entire amount at the moment of ownership transfer. Instead, buyers pay the vehicle's principal and interest rate in equal monthly payments, and they eventually become the vehicle's owners when the price is paid in full. Auto loans are secured loans where the vehicle is pledged as security. Lenders for new, used, and commercial automobiles provide it. Banks, credit unions, and internet lenders all provide auto loans, which need the vehicle to be used as security.

United Kingdom Auto Loan Market Driving Factors and Challenges

Driving Factors-
Increasing Auto Loan Digitization to Spur Market Growth
Digitization of auto financing is unavoidable as digital touchpoints become more prevalent in the client purchasing process. The digital transformation movement is sweeping across many businesses, including the car loan market. As a result of the shift to digital services, buyers across all auto categories prefer a hassle-free vehicle buying experience. The rise of online automotive finance applications, combined with rising vehicle prices, is propelling the worldwide auto loan business forward. Furthermore, the adoption of digital technologies for vehicle financing has a beneficial impact on the growth of the auto finance business. Automotive lenders all over the world are digitising the consumer experience with technology such as e-signature, biometrics, and identity document verification.

Challenges-
Economic Uncertainty
Economic unpredictability, shifting interest rates, and potential credit concerns all pose issues for the car loan business. Regulatory developments, environmental concerns, and movements to shared mobility could all have an impact on the industry by changing customer choices and the traditional ownership paradigm.


Impact of COVID-19 on United Kingdom Auto Loan Market
The early stages of the COVID-19 pandemic, particularly in Q1 2020, had a significant impact on the automobile sector, with new vehicle demand falling by 3-4% and used cars falling by 1-2% compared to 2019. However, following June 2020, sales soared as global lockdown measures relaxed. Accenture reported a 3.2% increase in new loan demand in Q2 2020 compared to the same period in 2019. Pickup trucks and light commercial vehicles accounted for the majority of loan applications in 2020. Automotive finance companies responded by offering tempting repayment options to assist customers during the pandemic, such as Ford's 90-day payment postponement for new car loans, which was also adopted by Nissan and Hyundai.

United Kingdom Auto Loan Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as Blue Motor Finance, Northridge Car Finance, Lloyds Bank, Nationwide Building Society, Royal Bank of Scotland, Close Brothers Motor Finance, Black Horse Finance, MotoNovo Finance, Moneybarn, Zopa.


United Kingdom Auto Loan Market Segmentation:

By Vehicle Type: Based on the Vehicle Type, United Kingdom Auto Loan Market is segmented as; Passenger Vehicle, Commercial Vehicle.

By Ownership: Based on the Ownership, United Kingdom Auto Loan Market is segmented as; New Vehicles, Used Vehicles.

By Provider Type: Based on the Provider Type, United Kingdom Auto Loan Market is segmented as; Banks, Original Equipment Manufacturers, Non-Banking Financial Companies, Credit Unions, Other Provider Types.

By Tenure: Based on the Tenure, United Kingdom Auto Loan Market is segmented as; Less than Three Years, 3-5 Years, More Than 5 Years.

By Region: This research also includes data for London, Scotland, East Midlands, East Anglia, Southwest, Southeast,  Yorkshire, Humberside.

This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.

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