Market Size of Australia Used Car Financing Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.96 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Australia Used Car Financing Market Analysis
Australia used car financing market was valued at USD 580.54 million in 2021 and expected to surpass a net valuation of USD 971.48 million by 2027 end, registering a solid CAGR growth of 8.96% during the forecast period.
The used car market in Australia is highly consolidated with several OEM, auction houses, and pre-owned dealers who thrive to expand their fleet size to offer a wide pool of financing opportunities to their clients.
During Covid-19, Australia used car financing 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 of strict lockdown measures prevailed by the Australian government. Although, after Q1 2021, everything was again on track with the used car financing business achieving a growth phase as well.
Major consumers across Australia are facing financial instability post-pandemic surge in the selling of newer cars. This is likely to mark as major growth lever for the market. In addition, the rising consumer preference towards owning a personal vehicle and avoiding public transportation is also identified as key fueling factor for used car market across the nation. Ownership of cars, which used to be a status symbol long ago, has become a necessity in recent times and thus is deeply identified by the key financers and pre-owned car owners.
There is no established national association in place in Australia to maintain the finacing business for used cars. Dealer clusters form their own community-based organizations to ensure that pricing is comparable within the cluster and to hold gatherings to boost support for the group. By working with multi- and auto-financing businesses, independent used car dealers reduce their exposure to buyers' financial concerns. Cars older than ten years are not eligible for financing because of their reduced lifespan, increased risk of damage, and diminished value. When compared to new car purchases, there is a higher proportion of cash payments because the price can be 20-30% lower.
Condiering these factors, demand for used car financing in Australia is ected to witness moderate groth rate during the forecast period.
