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Subprime Auto Loans in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Subprime Auto Loans Market Research Report | Advisory & Financial Services | Financial Intermediaries | Jun 2014

Smooth ride: Greater car sales and investor interest will drive industry growth

IBISWorld’s Subprime Auto Loans market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Market Share of Companies
Ally Financial Ally Financial market share
Honda Honda market share
Toyota Toyota market share
Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 09-14
4.5%
Annual Growth 14-19
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Profit
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Employment
34,217
Businesses
832
Industry Analysis & Industry Trends

The Subprime Auto Loans industry is rebounding strongly from effects of the recession, but performance still remains below prerecessionary levels. New car sales, improving consumer finances and continued strong demand growth from subprime borrowers and investors are forecast to spur industry growth over the next five years. However, faster growth will be restrained by rising interest rates that will raise borrowing costs and slow vehicles sales.... purchase to read more

Industry Report - Industry Analysis Chapter

The Subprime Auto Loans industry is composed of banks, credit unions, financing companies and captive firms that underwrite automotive loans for subprime borrowers, defined in this report as consumers with a credit score below 620. Subprime borrowers have low FICO credit scores caused by limited or spotty credit histories and imperfect information on their financial status that restricts their access to credit. They are more sensitive to "cash in hand," or liquidity constrained, which means they are riskier borrowers with higher probabilities of delinquency and default compared with the overall automotive finance market.

According to Experian Automotive, about 88.3% of industry revenue comes from automotive loans and 11.7% comes from automotive leases... purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Subprime Auto Loans Industry?

This industry includes firms that finance automobile purchases through loans and leases for subprime borrowers, defined in this report as borrowers with a credit score below 620.

Industry Products
New vehicle loansUsed vehicle loans
 
Industry Activities
Subprime automotive lendingSubprime automotive leasing


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