Market Trends of North America Motorcycle Loan Industry
Banks are the Major Source for Financing in United States
The North American motorcycle loan market refers to the financial services industry segment that provides loans specifically tailored for the purchase of motorcycles in the countries of North America, including the United States and Canada.
North America's motorcycle loan market is segmented by vehicle type, by provider type, by percentage of amount sanctioned, by tenure, by geography. The market by vehicle type is further segmented into two-wheelers, passenger cars, and commercial vehicles. The market provider type is further segmented into banks, NBFc (non-banking financial services), OEM (original equipment manufacturers), and others (fintech companies)). The market by percentage of amount sanctioned is further segmented into less than 25%, 25-50%, 51-75%, and more than 75%. The market by tenure is further segmented into less than 3 years, 3-5 years, and more than 5 years. The market by geography is further segmented into the USA, Canada, and the rest of North America.
The report offers market size and forecasts for the North American motorcycle loan market in value (USD) for all the above segments.
Increasing Trend of Car Loan Balances in the United States
As car loan balances increase, consumers may allocate more of their borrowing capacity toward financing their cars. This increased competition for consumer financing may result in less available credit allocated to motorcycle loans. Lenders may prioritize car loans due to their larger loan amounts and potentially lower risk profiles, which could reduce the overall availability of motorcycle loans. The increasing popularity of car loans may influence consumer preferences and spending patterns. As individuals commit more of their borrowing capacity to car loans, their ability or willingness to take on additional debt, such as motorcycle loans, may be reduced. This shift in consumer preferences could lead to lower demand for motorcycle loans.
Financial institutions offering car and motorcycle loans may leverage the increasing trend of car loan balances to cross-sell motorcycle loans to their existing customers. They can promote motorcycle loans as an additional financing option, targeting customers with a relationship with the institution. This strategy may mitigate the potential impact of the increasing car loan balances on the motorcycle loan market.
