United States Car Loan Market Size (2024 - 2029)

United States Car Loan Market Analysis

The United States Car Loan Market size is estimated at USD 175.86 billion in 2024, and is expected to reach USD 219.80 billion by 2029, growing at a CAGR of 4.56% during the forecast period (2024-2029).

The United States car loan market is a significant component of the automotive and financial industries. A borrower's credit score plays a crucial role in determining the interest rate and loan eligibility. Those with higher credit scores often receive more favorable loan terms.

The car loan industry in the United States is subject to federal and state regulations, which include consumer protection laws to ensure fair lending practices. Interest rates on car loans can vary based on factors such as the borrower's credit history, the loan term, and the lender's policies. Good credit scores often lead to lower interest rates.

Consumer financing of vehicles typically involves indirect financing through dealership networks, which accounts for seventy to eighty percent of total volume. Captive lenders and banks distribute multiple financing and insurance products to dealerships. Their products include consumer auto finance, warranty and payment-protection products (including white-labeled offers), and floor plan and commercial financing programs.

In the United States, refinancing is increasing, led by fintech. Fintech players are using partnerships to consolidate as much of the car refinancing market as they can. Another growth area is the loans on electric vehicles (EVs). The share of car sales is growing at around 70 percent annually. Banks have dominated lending in the EV space so far, using indirect lending through dealers.

United States Car Loan Industry Segmentation

A car loan is the funds that one borrows from a lender for the sole purpose of purchasing a car. Lenders like banks and non-banking financial companies (NBFCs) offer auto finance to consumers in the form of new and used car loans.

The study gives a brief description of the United States car loan market and includes details on interest rates, type of loans offered, and car loan products & services. The United States car loan market is segmented by vehicle type, ownership, provider type, and tenure. By vehicle type, the market is segmented into passenger vehicles and commercial vehicles. By ownership, the market is segmented by new vehicles and used vehicles. By provider type, the market is segmented by banks, non-bank financial companies, car manufacturers, and others. Others include fintech companies. By tenure, the market is segmented into less than three years, 3-5 years, and more than 5 years. 

The report offers market size and forecasts for the United States car loan market in value (USD) for all the above segments.