logo

Indonesia Used Car Financing Market Size (2024 - 2029)

The Indonesia Used Car Financing Market is anticipated to experience substantial growth over the forecast period, driven by the increasing digitization of the automotive industry and the emergence of innovative platforms that enhance remote buying experiences. This transformation is expected to offer consumers greater convenience and a wider selection of pre-owned vehicles. The market's expansion is further supported by the availability of value-added services and competitive financing options from non-banking finance companies, which provide more attractive terms than traditional banks. However, potential challenges such as higher interest rates may impact consumer purchasing decisions.

Home Market Analysis Automotive Research Automotive Services Research Automotive Financing Research Pre-Owned Vehicle Financing Research Used Car Financing Market in Indonesia Market Size

Market Size of Indonesia Used Car Financing Industry

Indonesia Used Car Financing Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 39.99 Billion
Market Size (2029) USD 53.02 Billion
CAGR (2024 - 2029) 5.80 %
Market Concentration Medium

Major Players

Indonesia Used Car Financing Market - major Players

*Disclaimer: Major Players sorted in no particular order

Indonesia Used Car Financing Market Analysis

The Indonesia Used Car Financing Market size is estimated at USD 39.99 billion in 2024, and is expected to reach USD 53.02 billion by 2029, growing at a CAGR of 5.80% during the forecast period (2024-2029).

Over the long term, as digital technologies continue to transform the automotive industry, the used car market in Indonesia remains poised for remarkable expansion. With the advent of innovative tools and platforms for creating compelling remote buying experiences, Indonesian consumers can now explore a vast range of pre-owned vehicles online from the comfort of their homes. This shift toward digitization is expected to drive significant growth in the used car market, offering consumers greater convenience, choice, and value.

The used car market in the country is expected to grow due to increased value-added services and the availability of finance providers offering credit for used cars. However, the growth may be affected by higher interest rates, which could discourage potential customers from making purchases.

The market growth is being significantly boosted by the emergence of multiple non-banking finance companies that provide customers with low-interest rate options compared to traditional banks. In addition, these companies offer more flexible installment options, making it easier for consumers to manage their finances and fulfill their obligations.

Indonesia Used Car Financing Industry Segmentation

A used, pre-owned, or secondhand car is a vehicle with one or more retail owners. A certified pre-owned (CPO) vehicle, on the other hand, is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned.

The Indonesian used car market is segmented by vehicle type, financing providers, and province. The market is segmented by vehicle type into hatchback, sedan, sport utility vehicle (SUV), and multi-purpose vehicle. By financing provider, the market is segmented into OEMs, banks, and non-banking financial companies. By province, the market is segmented into West Java, East Java, Central Java, North Sumatra, Banten, Jakarta, and Other Provinces. The report covers market sizing and forecasts based on value (USD) for each segment.

By Vehicle Type
Hatchback
Sedan
Sport Utility Vehicle (SUV)
Multi-purpose Vehicle (MPV)
By Financing Providers
OEMs
Banks
Non-banking Financial Companies
By Province
West Java
East Java
Central Java
North Sumatra
Banten
Jakarta
Other Provinces
Need A Different Region Or Segment?
Customize Now

Indonesia Used Car Financing Market Size Summary

The Indonesian used car financing market is experiencing significant growth, driven by the increasing adoption of digital technologies and innovative platforms that enhance the remote buying experience for consumers. This digital transformation is making it easier for Indonesian consumers to explore and purchase pre-owned vehicles online, offering them greater convenience and a wider range of choices. The market is also benefiting from the emergence of non-banking finance companies that provide competitive financing options, such as lower interest rates and flexible installment plans, which are more appealing than traditional bank offerings. This has led to a shift in consumer preferences towards sport utility vehicles (SUVs), which are becoming increasingly popular due to their perceived value and suitability for the improving road infrastructure in the country.

The market landscape is characterized by the presence of key players, including banks, captives, and multi-finance companies, which are actively providing financing solutions for used car purchases. Banks like Bank Central Asia, Bank Mandiri, and others are prominent in this space, offering various loan terms and conditions to cater to different consumer needs. Additionally, partnerships between private banks and used car marketplaces are facilitating the growth of auto-financing services, leveraging digital platforms to streamline the loan process. The involvement of fintech startups is further enhancing the market by introducing digital tools for online payments and lending, which are simplifying the financing process. As a result, the demand for used cars, particularly SUVs, is expected to continue growing, supported by favorable financing options and technological advancements in the automotive sector.

Explore More

Indonesia Used Car Financing Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Used Car Financing to Continue Solving Consumer Challenges in Indonesia

    2. 1.2 Market Restraints

      1. 1.2.1 Trust and Transparency in Used Car Remains a Key Challenge for Consumers

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value (USD))

    1. 2.1 By Vehicle Type

      1. 2.1.1 Hatchback

      2. 2.1.2 Sedan

      3. 2.1.3 Sport Utility Vehicle (SUV)

      4. 2.1.4 Multi-purpose Vehicle (MPV)

    2. 2.2 By Financing Providers

      1. 2.2.1 OEMs

      2. 2.2.2 Banks

      3. 2.2.3 Non-banking Financial Companies

    3. 2.3 By Province

      1. 2.3.1 West Java

      2. 2.3.2 East Java

      3. 2.3.3 Central Java

      4. 2.3.4 North Sumatra

      5. 2.3.5 Banten

      6. 2.3.6 Jakarta

      7. 2.3.7 Other Provinces

Indonesia Used Car Financing Market Size FAQs

The Indonesia Used Car Financing Market size is expected to reach USD 39.99 billion in 2024 and grow at a CAGR of 5.80% to reach USD 53.02 billion by 2029.

In 2024, the Indonesia Used Car Financing Market size is expected to reach USD 39.99 billion.

Indonesia Used Car Financing Market Report Snapshots

Indonesia Used Car Financing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)