United Kingdom Auto Loan Market Introduction and Overview
According to SPER Market Research, the United Kingdom Auto Loan Market is estimated to reach USD 135.02 billion by 2033 with a CAGR of 4.7%.
The report includes an in-depth analysis of the United Kingdom Auto Loan Market, including market size and trends, product mix, applications, and supplier analysis. An auto loan is a type of finance that allows you to buy a vehicle, such as a truck or car, and repay it over time. Auto loans are secured loans in which the automobile is used as collateral. It is provided by lenders for used, new, and commercial vehicles. Auto loans are available through credit unions, banks, and online lenders and require the vehicle to be used as collateral.
- December 2023: Blue Motor lending Limited (Blue), a UK-based auto lending firm regulated by the FCA, takes pride in its capacity to improve customer service through technology. Clients may now, with a single click of a button, obtain all agreement-related documentation for the term of their loan in a single, easy-to-access file. Customers can also request a settlement quote in real time, at a time that is convenient for them.
- August 2023: Santander Consumer Finance expanded its cooperation with MG Motor to provide dealers an EV incentives package for consumers.
Market Opportunities and Challenges
Opportunities-
Low interest rates are propelling the market: Low interest rates have a big impact on the vehicle loan market in the UK. Low interest rates make borrowing money more inexpensive, especially vehicle loans. Low interest rates enable more consumers to finance their car purchases because they may get loans at a reduced cost and have better payback terms. Lower interest rates result in lower monthly loan payments, making it easier for people to afford a car loan. This increases demand for new and used cars, as people prefer to finance their purchases rather than pay the full cost up front. As a result, the car loan market sees greater activity, with more consumers looking for loans to buy cars.
Challenges-
Market Saturation and High Competition Will Affect Market Growth: The market has a wide range of participants, including OEMs, banks, captives, and financial institutions. These businesses find it extremely difficult to attract new clients due to the intense rivalry, which also raises operating and marketing expenses. In order to be successful in this specific market, lower interest rates and clear financing procedures are essential. Because well-known brands predominate in this industry, new entrants encounter significant obstacles.
Market Competitive Landscape
The UK auto loan market is fragmented, with a wide number of participants. Rising technological innovation in banking and financial services is encouraging car purchasers to apply for loans through their smart devices, offering a diverse selection of solutions with varying interest rates and maturities. Some of the established participants in the UK vehicle lending market are Blue Motor Finance, Northridge Car Finance, Lloyds Bank, Nationwide Building Society, and Royal Bank of Scotland.
Scope of the Report:
| Report Metric | Details |
| Market size available for years | 2020-2033 |
| Base year considered | 2023 |
| Forecast period | 2024-2033 |
| Segments covered | By Product, By Ownership, By Provider Type, By Tenure
|
| Regions covered | London, East Anglia, Southwest, Southeast, Scotland, East Midlands, Yorkshire, Humberside
|
| Companies Covered | Blue Motor Finance, Northridge Car Finance, Lloyds Bank, Nationwide Building Society, Royal Bank of Scotland, Close Brothers Motor Finance, Black Horse Finance, MotoNovo Finance, Moneybarn, Zopa.
|
COVID-19 Impact on United Kingdom Auto Loan Market
The early stages of the COVID-19 pandemic, particularly in 2020 Q1, had a substantial influence on the automobile industry, with new vehicle demand falling by 3-4% and used cars falling by 1-2% compared to 2019, according to OICA. However, after June 2020, sales increased as global lockdown measures loosened. Accenture observed a 3.2% increase in new loan demand in Q2 2020 compared to the same period in 2019. Automotive finance companies responded by providing appealing repayment options to help clients during the pandemic, such as Ford's 90-day payment deferment for new car loans, which was subsequently implemented by Nissan and Hyundai.
Key Target Audience:
- First-time car buyers
- High-income individuals
- Middle-income individuals
- Individuals with good credit scores
- Individuals with poor or no credit history
- Small business owners needing fleet vehicle
- Eco-conscious consumers (electric or hybrid vehicles)
- Enterprises (businesses needing vehicles)
- Banks
- OEMs (Original Equipment Manufacturers)
- Credit unions
- Non-banking financial companies
Our in-depth analysis of the United Kingdom Auto Loan Market includes the following segments:
|
By Vehicle Type:
|
Passenger Vehicle
Commercial Vehicle
|
|
By Ownership:
|
New Vehicles
Used Vehicles
|
|
By Provider Type:
|
Banks
Non-Banking Financial Companies
Original Equipment Manufacturers
Credit Unions
Other Provider Types
|
|
By Tenure:
|
Less than Three Years
3-5 Years
More Than 5 Years
|
Key Topics Covered in the Report:
- United Kingdom Auto Loan Market Size (FY’2024-FY’2033)
- Overview of United Kingdom Auto Loan Market
- Segmentation of United Kingdom Auto Loan Market by Vehicle Type (Passenger Vehicle, Commercial Vehicle)
- Segmentation of United Kingdom Auto Loan Market by Ownership (New Vehicles, Used Vehicles)
- Segmentation of United Kingdom Auto Loan Market by Provider Type (Banks, Non-Banking Financial Companies, Original Equipment Manufacturers, Credit Unions, Other Provider Types)
- Segmentation of United Kingdom Auto Loan Market by Tenure (Less than Three Years, 3-5 Years, More Than 5 Years)
- Statistical Snap of United Kingdom Auto Loan Market
- Expansion Analysis of United Kingdom Auto Loan Market
- Problems and Obstacles in United Kingdom Auto Loan Market
- Competitive Landscape in the United Kingdom Auto Loan Market
- Impact of COVID-19 and Demonetization on United Kingdom Auto Loan Market
- Details on Current Investment in United Kingdom Auto Loan Market
- Competitive Analysis of United Kingdom Auto Loan Market
- Prominent Players in the United Kingdom Auto Loan Market
- SWOT Analysis of United Kingdom Auto Loan Market
- United Kingdom Auto Loan Market Future Outlook and Projections (FY’2024-FY’2033)
- Recommendations from Analyst
1. Introduction
1.1. Scope of the report
1.2. Market segment analysis
2. Research Methodology
2.1. Research data source
2.1.1. Secondary Data
2.1.2. Primary Data
2.1.3. SPER’s internal database
2.1.4. Premium insight from KOL’s
2.2. Market size estimation
2.2.1. Top-down and Bottom-up approach
2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
4.1. Driver, Restraint, Opportunity and Challenges analysis
4.1.1. Drivers
4.1.2. Restraints
4.1.3. Opportunities
4.1.4. Challenges
4.2. COVID-19 Impacts of the United Kingdom Auto Loan Market.
5. Market variable and outlook
5.1. SWOT Analysis
5.1.1. Strengths
5.1.2. Weaknesses
5.1.3. Opportunities
5.1.4. Threats
5.2. PESTEL Analysis
5.2.1. Political Landscape
5.2.2. Economic Landscape
5.2.3. Social Landscape
5.2.4. Technological Landscape
5.2.5. Environmental Landscape
5.2.6. Legal Landscape
5.3. PORTER’s Five Forces
5.3.1. Bargaining power of suppliers
5.3.2. Bargaining power of buyers
5.3.3. Threat of Substitute
5.3.4. Threat of new entrant
5.3.5. Competitive rivalry
5.4. Heat Map Analysis
6. Competitive Landscape
6.1. United Kingdom Auto Loan Market Manufacturing Base Distribution, Sales Area, Product Type
6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in United Kingdom Auto Loan Market
7. United Kingdom Auto Loan Market, By Vehicle Type (USD Million) 2020-2033
7.1. United Kingdom Auto Loan Market Size, Share and Forecast, By Vehicle Type, 2020-2026
7.2. United Kingdom Auto Loan Market Size, Share and Forecast, By Vehicle Type, 2027-2033
7.3. Passenger Vehicle
7.4. Commercial Vehicle
8. United Kingdom Auto Loan Market, By Ownership (USD Million) 2020-2033
8.1. United Kingdom Auto Loan Market Size, Share and Forecast, By Ownership, 2020-2026
8.2. United Kingdom Auto Loan Market Size, Share and Forecast, By Ownership, 2027-2033
8.3. New Vehicles
8.4. Used Vehicles
9. United Kingdom Auto Loan Market, By Provider Type (USD Million) 2020-2033
9.1. United Kingdom Auto Loan Market Size, Share and Forecast, By Provider Type, 2020-2026
9.2. United Kingdom Auto Loan Market Size, Share and Forecast, By Provider Type, 2027-2033
9.3. Banks
9.4. Non-Banking Financial Companies
9.5. Original Equipment Manufacturers
9.6. Credit Unions
9.7. Other Provider Types
10. United Kingdom Auto Loan Market, By Tenure (USD Million) 2020-2033
10.1. United Kingdom Auto Loan Market Size, Share and Forecast, By Tenure, 2020-2026
10.2. United Kingdom Auto Loan Market Size, Share and Forecast, By Tenure, 2027-2033
10.3. Less than Three Years
10.4. 3-5 Years
10.5. More Than 5 Years
11. United Kingdom Auto Loan Market Forecast, 2020-2033 (USD Million)
11.1. United Kingdom Auto Loan Market Size and Market Share
12. United Kingdom Auto Loan Market, By Region, 2020-2033 (USD Million)
12.1. United Kingdom Auto Loan Market Size and Market Share By Region (2020-2026)
12.2. United Kingdom Auto Loan Market Size and Market Share By Region (2027-2033)
12.3. London
12.4. East Anglia
12.5. Southwest
12.6. Southeast
12.7. Scotland
12.8. East Midlands
12.9. Yorkshire
12.10. Humberside
13. Company Profile
13.1. Blue Motor Finance
13.1.1. Company details
13.1.2. Financial outlook
13.1.3. Product summary
13.1.4. Recent developments
13.2. Northridge Car Finance
13.2.1. Company details
13.2.2. Financial outlook
13.2.3. Product summary
13.2.4. Recent developments
13.3. Lloyds Bank
13.3.1. Company details
13.3.2. Financial outlook
13.3.3. Product summary
13.3.4. Recent developments
13.4. Nationwide Building Society
13.4.1. Company details
13.4.2. Financial outlook
13.4.3. Product summary
13.4.4. Recent developments
13.5. Royal Bank of Scotland
13.5.1. Company details
13.5.2. Financial outlook
13.5.3. Product summary
13.5.4. Recent developments
13.6. Close Brothers Motor Finance
13.6.1. Company details
13.6.2. Financial outlook
13.6.3. Product summary
13.6.4. Recent developments
13.7. Black Horse Finance
13.7.1. Company details
13.7.2. Financial outlook
13.7.3. Product summary
13.7.4. Recent developments
13.8. MotoNovo Finance
13.8.1. Company details
13.8.2. Financial outlook
13.8.3. Product summary
13.8.4. Recent developments
13.9. Moneybarn
13.9.1. Company details
13.9.2. Financial outlook
13.9.3. Product summary
13.9.4. Recent developments
13.10. Zopa
13.10.1. Company details
13.10.2. Financial outlook
13.10.3. Product summary
13.10.4. Recent developments
13.11. Others
14. Conclusion
15. List of Abbreviations
16. Reference Links
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
