Market Size of US Auto Loan Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Auto Loan Market Analysis
The United States auto loan market has a loan outstanding of USD 1.502 trillion in the current year and is poised to register a CAGR of more than 6% for the forecast period.
The growth of automobile loans in the United States has observed a continuous rise over the years. In terms of the interest rate on automobiles, new vehicles in the United States exist with a significantly lower interest rate as compared to used vehicles because of the lower level of price risk associated with them, and this drives their loan product sales. Among the passenger vehicle sales in the country, SUVs and Pickup trucks exist with more than 60% of the sales.
As the number of vehicles in operation is observing a continuous increase, sales of automobiles are increasing, leading and rising business opportunities for the automobile loan providers. The vehicle ownership rate in the United States exists at more than 91%, leading to the creation of a business cycle of new and used vehicle sales in the market and financial institutions emerging with a variety of loans and financing products. In addition, the rise in the number of fintech institutions and financial companies in the country is expanding the reach of the auto loan market with a competitive rate of interest over various periods of auto loan.
Post-COVID-19, the sales of electric vehicles in the United States are observing a continuous increase, with the government launching various initiatives to make them affordable with the creation of emerging opportunities in the automobile loan market. Recently, the government, under its Inflation Reduction Act, launched a tax credit of USD 7500 for the purchase of electric vehicles if the final assembly is done in the United States. In addition, automobile manufacturers and sellers such as Ferrari have started to accept cryptocurrency for their sales, and financing firms are opting for various cryptocurrencies as collateral for automobile loans, taking the market in a new direction.
