Market Size of Europe Used Car Financing Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 7.89 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Used Car Financing Market Analysis
The European Used Car Financing Market is expected to register a CAGR of 7.89% during the forecast period.
The market is driven by several factors. The key factor remains the cost affordability offered by used cars over new cars. As the region has the presence of higher income groups, the demand for used cars has been propelled by used luxury cars. People are inclined toward using luxury car financing to buy cars. Cars, including SUVs and luxury sedans, are the key hotspot of consumers while going ahead with used car financing.
COVID-19 has deeply affected the market on both sides of the table. During this period, people realized the economic crisis and its adverse effects on individual lives. This has created sudden challenges for several individuals who lost their respective jobs during the period. Moreover, in the post-COVID-19 period, people have been shifting their preferences toward saving money. Thus, there is more inclination toward owning vehicles with distributed EMI options to avoid one-time payments.
Furthermore, market growth has also witnessed challenges in terms of prices offered by different vendors, lack of standardization, servicing costs incurred by used vehicles, and routine maintenance. This has marginally reduced the demand for used vehicles over the years, which may act as a key restrain for the market. A few notable trends, including a shift toward online buying, technological advancements, and reduced rates for car insurance premiums, have also been observed to help the market recovery during the forecast period.
