Europe Automotive Finance Market Size (2024 - 2029)

Europe Automotive Finance Market Analysis

The Europe Automotive Finance Market size is estimated at USD 31.14 billion in 2024, and is expected to reach USD 43.13 billion by 2029, growing at a CAGR of 6.73% during the forecast period (2024-2029).

Over the long term, as European consumers increasingly opt for private transportation, buoyed by rising disposable incomes and enticed by financial institutions' attractive programs like car buybacks and OEM warranties, the automotive finance market in Europe is poised for significant growth.

• According to the International Organization of Motor Vehicle Manufacturers (OICA), new passenger car sales in Europe touched 14.9 million units in 2023 compared to 12.63 million units in 2022, representing a Y-o-Y growth of 16.4% between 2022 and 2023.

Moreover, the burgeoning used car market and a growing preference for customizable loan options are stoking the demand for automotive financing in Europe. Instead of upfront payments, consumers are increasingly turning to equated monthly installments for their used vehicle purchases. Additionally, as governments push for transportation decarbonization and consumers lean toward eco-friendly transportation methods, the stage is set for a surge in European electric vehicle financing opportunities.

Key market players have bolstered their brand presence by offering competitive interest rates and forging lasting partnerships with automakers. Notably, companies like Geely are teaming up with banks, which integrates them into the vehicle financing industry and boosts their overall business profitability. The market is primed for growth, fueled by the rising prices of new vehicles, prompting consumers to seek out flexible financing options across Europe.

Europe Automotive Finance Industry Segmentation

Automotive financing, commonly referred to as car finance, encompasses a range of financial products that facilitate the purchase of vehicles, whether new or used, through methods other than a one-time, full-cash payment.

The European automotive financing market is segmented by type, source type, vehicle type, and country. By type, the market is segmented into new vehicles and used vehicles. By source type, the market is segmented into original equipment manufacturers (OEMs), banks, credit institutions, and non-banking financial institutions. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By country, the market is segmented into Germany, the United Kingdom, Italy, France, Spain, Netherlands, Belgium, and the Rest of Europe.

The report offers market size and forecasts for automotive financing in value (USD) for all the above segments.