Market Size of Europe Used Car Financing Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 7.89 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Europe Used Car Financing Market Analysis
The European Used Car Financing Market is expected to register a CAGR of 7.89% during the forecast period.
The market is driven by several factors. The key factor remains the cost affordability offered by used cars over new cars. As the region has the presence of higher income groups, the demand for used cars has been propelled by used luxury cars. People are inclined toward using luxury car financing to buy cars. Cars, including SUVs and luxury sedans, are the key hotspot of consumers while going ahead with used car financing.
COVID-19 has deeply affected the market on both sides of the table. During this period, people realized the economic crisis and its adverse effects on individual lives. This has created sudden challenges for several individuals who lost their respective jobs during the period. Moreover, in the post-COVID-19 period, people have been shifting their preferences toward saving money. Thus, there is more inclination toward owning vehicles with distributed EMI options to avoid one-time payments.
Furthermore, market growth has also witnessed challenges in terms of prices offered by different vendors, lack of standardization, servicing costs incurred by used vehicles, and routine maintenance. This has marginally reduced the demand for used vehicles over the years, which may act as a key restrain for the market. A few notable trends, including a shift toward online buying, technological advancements, and reduced rates for car insurance premiums, have also been observed to help the market recovery during the forecast period.
Europe Used Car Financing Industry Segmentation
Used car financing is the service that offers used cars to consumers at much-lowered prices with affordable EMI installments. These installments are divided based on the loan amount and tenure, with some fixed rate of interest.
The European Used Car Financing Market is segmented by Car type (Hatchbacks, Sedans, Sports Utility Vehicle, and Multi-purpose Vehicle), by Financier (OEM, Banks, and Non-Banking Financing Companies), and by Country (Germany, United Kingdom, France, Italy, and Other Countries). For each segment, the market sizing and forecasts have been provided on the basis of value (in USD million) and volume (in metric tons).
| By Car Type | |
| Hachbacks | |
| Sedan | |
| Sports Utility vehicles (SUV) | |
| Multi-purpose Vehicle |
| By Financier | |
| OEM | |
| Banks | |
| Non- Banking Financial Companies |
| By Country | |
| Germany | |
| United Kingdom | |
| France | |
| Italy | |
| Other Countries |
Europe Used Car Financing Market Size Summary
The European used car financing market is poised for significant growth, driven by the affordability of used cars compared to new ones and the increasing demand for luxury vehicles among higher income groups. The market has been influenced by the economic challenges posed by the COVID-19 pandemic, which led to a shift in consumer preferences towards cost-saving measures, such as financing options that allow for distributed EMI payments. Despite challenges like varying vendor prices, lack of standardization, and maintenance costs, the market is recovering, aided by trends such as online purchasing, technological advancements, and reduced car insurance premiums. The rise in internet penetration across Europe, particularly in countries like the United Kingdom, the Netherlands, Sweden, and Germany, has facilitated the growth of online used car sales, making it easier for consumers to compare options and secure financing.
The market landscape is moderately consolidated, with both organized and unorganized players competing by offering customized services and competitive pricing strategies. Partnerships between used car companies and financial institutions, including banks and non-banking financial companies, have enhanced loan facilities, boosting market revenue. The United Kingdom, a major player in the European automotive sector, continues to see a shift towards luxury used cars, although the rise of electric vehicles poses a short-term challenge to used car sales. However, the long-term outlook remains positive as the used car segment is expected to adapt to include electric vehicles. Key banking institutions and automotive manufacturers are actively collaborating to offer better financing options, with innovations like blockchain integration streamlining the financing process.
Europe Used Car Financing Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porters Five Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in Value USD Billion)
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2.1 By Car Type
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2.1.1 Hachbacks
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2.1.2 Sedan
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2.1.3 Sports Utility vehicles (SUV)
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2.1.4 Multi-purpose Vehicle
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2.2 By Financier
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2.2.1 OEM
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2.2.2 Banks
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2.2.3 Non- Banking Financial Companies
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2.3 By Country
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2.3.1 Germany
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2.3.2 United Kingdom
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2.3.3 France
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2.3.4 Italy
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2.3.5 Other Countries
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Europe Used Car Financing Market Size FAQs
What is the current Europe Used Car Financing Market size?
The Europe Used Car Financing Market is projected to register a CAGR of 7.89% during the forecast period (2024-2029)
Who are the key players in Europe Used Car Financing Market?
Axa Bank Belgium, Credit Europe Bank NV, HSBC Holdings plc, Deutsche Bank AG and Allianz are the major companies operating in the Europe Used Car Financing Market.
