Market Size of Asia-Pacific Used Car Financing Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.74 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Used Car Financing Market Analysis
The Asia-Pacific used car financing market is valued at USD 675.62 billion and is expected to reach USD 935.12 billion over the coming five years, with a combined CAGR of 5.74% during the same period.
During the COVID-19 pandemic, Asia-Pacific used car financing market witnessed a steady decline owing to the spread of the virus, and people avoided purchasing cars amid an economic crisis. In addition, markets, showrooms, and auction events were closed down as the regional government imposed strict lockdown measures. Although, after Q1 2021, everything was again on track, with the used car financing business achieving a growth phase as well.
Asia-Pacific provided an equivalent pace to the used car financing business with the presence of sparse players across South Asian countries, including small NBFC and OEM, and private banks offering subsequent options for getting used car financing. The used car market across these countries is fragmented, with several OEMs, auction houses, and pre-owned dealers striving to expand their fleet size to offer their clients a wide pool of financing opportunities. The majority of consumers who choose to buy a car with some sort of financial aid often seem to rely upon the financing services offered to them. This fact can be merely attributed to used automobile financing options which are currently available at the cost of around 13-15%, which presents a huge potential for both manufacturers and financial institutions. In a country like India, the used automobile market is currently about 1.3 times larger than the new car market, which will probably present opportunities for the sector.
Considering these potential factors, demand for used car financing in Asia-Pacific is expected to remain on the positive side of the market over the coming years.
