United Kingdom Auto Loan Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The United Kingdom Auto Loan Market Report is Segmented by Product (passenger Vehicles, Commercial Vehicles), Ownership (new Vehicles, Used Vehicles), Provider Type (banks, Non-Banking Financial Companies, Original Equipment Manufacturers, Credit Unions, Other Provider Types), and Tenure (less Than Three Years, 3-5 Years, More Than Five Years). The Report Offers Market Size and Forecasts for the United Kingdom Auto Loan Market in Value (USD) for all the Above Segments.

UK Auto Loan Market Size

United Kingdom Auto Loan Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 90.30 Billion
Market Size (2029) USD 112.36 Billion
CAGR (2024 - 2029) 4.47 %
Market Concentration Medium

Major Players

United Kingdom Auto Loan Market Major Players

*Disclaimer: Major Players sorted in no particular order

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UK Auto Loan Market Analysis

The United Kingdom Auto Loan Market size is estimated at USD 90.30 billion in 2024, and is expected to reach USD 112.36 billion by 2029, growing at a CAGR of 4.47% during the forecast period (2024-2029).

The Financial Conduct Authority (FCA) plays a crucial role in regulating financial markets, including auto loans. Regulatory changes can affect lending practices, consumer protection, and competition within the market. The influence of FinTech on the financial sector is notable. Online platforms and digital processes have introduced new ways for consumers to access and manage auto loans. Growing awareness of environmental issues may lead to increased interest in electric or hybrid vehicles. This could influence the types of cars financed and the terms of the loans.

The UK auto loan industry has been undergoing digital transformation, with lenders adopting online platforms for loan applications and management. This shift enhances customer experience and efficiency. Interest rates in the UK auto loan market are influenced by the Bank of England's base rate. Changes in these rates can impact the affordability of auto loans for consumers.

Used vehicle loans often have different terms compared to new vehicles. The age and mileage of the used vehicle may influence terms. Understanding the resale value of the used vehicle is important for lenders and borrowers. It influences the loan amount approved and the potential future value of the asset. Lenders take into account the depreciation of used vehicles when structuring loan terms. This consideration impacts the loan amount and terms.

UK Auto Loan Market Trends

Increasing Registrations of Electric Vehicle in United Kingdom

The UK government provides various incentives to promote electric vehicle adoption, such as grants, tax benefits, and reduced registration fees. Auto loan providers are aligning their offerings with these incentives, making financing for electric vehicles more attractive to consumers. Lenders may take into account the expanding charging infrastructure in the UK when assessing the viability of financing electric vehicles. The availability of charging stations can enhance the appeal of electric vehicles, influencing consumer decisions and loan demand. The environmental benefits of electric vehicles may drive lenders to introduce green financing initiatives. Consumers interested in minimizing their environmental impact may find electric vehicle financing options that align with their values. The increasing popularity of electric vehicles may lead to heightened competition among lenders in the UK auto loan market. Competition could result in innovative financing solutions and improved terms to attract borrowers interested in electric vehicles.

United Kingdom Auto Loan Market: Annual New Electric Car Registrations in United Kingdom, In thousands, 2018-2022

Highest Sales of Dual Purpose Passenger Vehicles in United Kingdom

Lenders in the UK auto loan market tailor loan products to meet the financing needs of consumers purchasing dual-purpose passenger vehicles. This could involve offering specific loan terms, interest rates, and financing options that align with the preferences of SUV buyers. The high demand for dual-purpose passenger vehicles may lead to competitive interest rates as lenders strive to attract borrowers in this popular market segment. Competitive rates can make financing more attractive for consumers considering the purchase of SUVs. Given the typically higher cost of dual-purpose passenger vehicles, lenders may offer extended loan terms to make monthly payments more manageable for buyers. Longer loan terms can accommodate the budgetary preferences of SUV purchasers. Collaboration between lenders and dealerships becomes crucial in the dual-purpose passenger vehicle market. Partnerships can streamline the financing process, offering consumers convenient financing options directly at the point of purchase. The UK auto loan market has undergone a digital transformation to enhance the online loan application and approval process. This can provide SUV buyers with convenient access to financing options and contribute to the overall ease of purchasing dual-purpose passenger vehicles.

United Kingdom Auto Loan Market: New Passenger Cars Registered in United Kingdom, In thousands, 2022

UK Auto Loan Industry Overview

The United Kingdom auto loan market is fragmented, with a large number of players existing in the market. Rising technological innovation in banking and financial services is leading automobile buyers to apply for loans from their smart devices with a varied range of products with different interest rates and maturity. Among some of the existing players in the United Kingdom auto loan market are Blue Motor Finance, Northridge Car Finance, Lloyds Bank, Nationwide Building Society, Royal Bank of Scotland, etc.

UK Auto Loan Market Leaders

  1. Blue Motor Finance

  2. Northridge Car Finance

  3. Lloyds Bank

  4. Nationwide Building Society

  5. Royal Bank of Scotland

*Disclaimer: Major Players sorted in no particular order

United Kingdom Auto Loan Market Concentration
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UK Auto Loan Market News

  • December 2023: Blue Motor Finance Limited (Blue), an FCA-regulated UK-based car finance provider, prides itself on its ability to use technology to enhance its customer service. Customers can now request all of their agreement-related documentation for the life of their loan in one simple file at the touch of a button. Customers can also request to receive a settlement quote in real-time at a time convenient to them.
  • August 2023: Santander Consumer Finance extended its partnership with MG Motor to provide dealers with an EV benefits scheme for customers.

United Kingdom Auto Loan Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Quick Processing of Loan through Digital Banking

    3. 4.3 Market Restraints

      1. 4.3.1 Rising Interest Rates Affecting New Auto Buyers Demand for Loan

    4. 4.4 Market Opportunities

      1. 4.4.1 Emerging Market of Electric Vehicles Expanding the Auto Loan Market

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Suppliers

      2. 4.5.2 Bargaining Power of Buyers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitutes

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Insights on Consumer Behavior Analysis

    7. 4.7 Insight on Various Government Regulations in the Market

    8. 4.8 Insights on Technological Innovations in South Korea Auto Loan Market

    9. 4.9 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Vehicle Type

      1. 5.1.1 Passenger Vehicle

      2. 5.1.2 Commercial Vehicle

    2. 5.2 By Ownership

      1. 5.2.1 New Vehicles

      2. 5.2.2 Used Vehicles

    3. 5.3 By Provider Type

      1. 5.3.1 Banks

      2. 5.3.2 Non Banking Financials Companies

      3. 5.3.3 Original Equiptment Manufacturers

      4. 5.3.4 Credit Unions

      5. 5.3.5 Other Provider Types

    4. 5.4 By Tenure

      1. 5.4.1 Less than Three Years

      2. 5.4.2 3-5 Years

      3. 5.4.3 More Than 5 Years

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profile

      1. 6.2.1 Blue Motor Finance

      2. 6.2.2 Northridge Car Finance

      3. 6.2.3 Lloyds Bank

      4. 6.2.4 Nationwide Building Society

      5. 6.2.5 Royal Bank of Scotland

      6. 6.2.6 Close Brothers Motor Finance

      7. 6.2.7 Black Horse Finance

      8. 6.2.8 MotoNovo Finance

      9. 6.2.9 Moneybarn

      10. 6.2.10 Zopa*

  7. 7. MARKET FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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UK Auto Loan Industry Segmentation

An auto loan is a segment of the loan category offered by banks and financial service providers to automobile buyers over a given period with an agreed interest rate and installment amount. Mostly, the loan is taken for two segments of automobiles, which consist of passenger and commercial vehicles.

The study gives a brief description of the United Kingdom auto loan market and includes details on interest rates, type of loans offered, and auto loan products & services. The United Kingdom auto loan market is segmented by product, ownership, provider type, and tenure. By product, 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-banking financial companies, original equipment manufacturers, credit unions, 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 Kingdom auto loan market in value (USD) for all the above segments.

By Vehicle Type
Passenger Vehicle
Commercial Vehicle
By Ownership
New Vehicles
Used Vehicles
By Provider Type
Banks
Non Banking Financials Companies
Original Equiptment Manufacturers
Credit Unions
Other Provider Types
By Tenure
Less than Three Years
3-5 Years
More Than 5 Years
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United Kingdom Auto Loan Market Research FAQs

The United Kingdom Auto Loan Market size is expected to reach USD 90.30 billion in 2024 and grow at a CAGR of 4.47% to reach USD 112.36 billion by 2029.

In 2024, the United Kingdom Auto Loan Market size is expected to reach USD 90.30 billion.

Blue Motor Finance, Northridge Car Finance, Lloyds Bank, Nationwide Building Society and Royal Bank of Scotland are the major companies operating in the United Kingdom Auto Loan Market.

In 2023, the United Kingdom Auto Loan Market size was estimated at USD 86.26 billion. The report covers the United Kingdom Auto Loan Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Auto Loan Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

United Kingdom Auto Loan Industry Report

Statistics for the 2024 United Kingdom Auto Loan market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Kingdom Auto Loan analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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United Kingdom Auto Loan Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)