Higher mileage: More accessible credit markets and higher income will spur growth

Auto Leasing, Loans and Sales Financing industry revenue is driven by purchases of goods that require financing; consequently, consumers are most active in this industry when they perceive economic stability in their future income. Over the past five years, industry revenue has grown due to historically-low interest rates and the availability of lengthier loan terms, rising consumer confidence and strong demand to replace aging vehicles. Over the five years to 2022, the industry is forecast to continue growing as disposable incomes are expected to rise, while other macroeconomic conditions remain favorable...read more.

Industry Statistics & Market Size
Revenue
$120bn
Annual Growth 12-17
5.9%
Forecast Growth 17-22
Profit
Employment
118,087
Businesses
4,520
What Our Customers Say

Industry Threats & Opportunities

  • Rising consumer sentiment and declining unemployment translated into higher auto sales and car prices, which benefited the industry
  • Across all credit risk tiers, consumers increasingly chose to lease new vehicles
  • If monthly payments rise, demand for automobile leasing will be slightly dampened
  • Industry Report - Industry Investment Chapter

    The level of capital intensity in this industry is low to moderate. Capital intensity remained rather steady over the five years to 2017, with the average industry operator spending $0.08 on capital for each dollar spent on labor, up slightly from $0.07 in 2012. Capital intensity increases as many sales finance companies offer sales financing in combination with leasing. In the provision of funds, finance companies often purchase installment sale and lease contracts for new and used equipment, mainly through dealers. When finance companies purchase installment sale contracts, they hold a security interest in the equipment purchased through the contract. The...purchase to read more.

    Additional Insights for the Auto Leasing, Loans & Sales Financing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Auto Leasing, Loans & Sales Financing Industry are

  • Output is sold under contract - incorporate long-term sales contracts
  • Well-developed internal processes
  • Financial position of the company (as against financial structure)
  • IBISWorld analysts also discuss how external factors such as Consumer Confidence Index and Yield on 10-year Treasury note in the Auto Leasing, Loans & Sales Financing industry impact industry performance..

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    What is the Auto Leasing, Loans & Sales Financing Industry?

    This industry includes establishments that provide sales financing or leasing in combination with sales financing for automobiles. Sales financing establishments are primarily engaged in lending money for the purpose of providing collateralized goods through a contractual-installment sales agreement, either directly from or through arrangements with dealers. Industry participants generate revenue through the interest and fees that are included in the installment payments of borrowers.

    Industry Products
  • Income from leasing to financial and nonfinancial business
  • Sales financing
  • New and used vehicle leasing
  • New and used vehicle loans
  • Finance leases
  • Industry Activities
  • Sales financing
  • Leasing in combination with sales financing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer Confidence Index
  • Yield on 10-year Treasury note
  • Corporate profit
  • National unemployment rate
  • Per capita disposable income
  • Price of new cars

  • Current Performance
  • Steady growth
  • Used vehicle and leasing financing surges
  • Subprime loans boost market
  • Chart: Revenue Growth

  • Industry Outlook
  • Low interest rates and increased liquidity
  • Used car prices pose threat
  • Industry landscape
  • Table: Auto Leasing, Loans & Sales Financing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Auto Leasing, Loans & Sales Financing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Construction
  • New Car Dealers
  • Used Car Dealers
  • Consumers

  • Key Selling Industries
  • Open-End Investment Funds
  • Portfolio Management
  • Retirement & Pension Plans

  • Products & Services
  • New and used vehicle loans
  • New and used vehicle leasing
  • Finance leases
  • Other
  • Income from leasing to financial and nonfinancial business
  • Sales financing
  • Chart: Auto Leasing, Loans & Sales Financing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Financial Services
  • Automotive
  • Businesses
  • Chart: Major Market Segmentation for the Auto Leasing, Loans & Sales Financing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitOtherWagesDepreciationPurchases
  • Chart: Cost Structure Benchmarking – Sector vs Auto Leasing, Loans & Sales Financing

  • Basis of Competition
  • Automotive financing
  • Securitization vehicles

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Auto Leasing, Loans & Sales Financing Industry

  • Industry Globalization
    Ford Motor Credit Company LLCToyota Financial Services CorporationAmerican Honda Finance CorporationAlly Financial Inc.Santander Consumer USA Inc.
  • Table: Ford Motor Credit Company LLC - financial performance
  • Table: Toyota Financial Services Corporation - financial performance
  • Table: American Honda Finance Corporation - financial performance
  • Table: Ally Financial Inc. - financial performance
  • Table: Santander Consumer USA Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Auto Leasing, Loans & Sales Financing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Auto Leasing, Loans & Sales Financing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Access to credit (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Balloon Payment
  • An oversized payment due at the end of a mortgage, commercial loan or other amortized loan.
  • Charge-Off
  • When a customer is unable to repay a debt (often distinguished by six months without repayment) and the debt is written off as uncollectible.
  • Lien Notation
  • A type of security interest granted over an item of property to secure payment of a debt.
  • Why buy this report?

    IBISWorld’s industry research report on Auto Leasing, Loans & Sales Financing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Auto Leasing, Loans & Sales Financing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Auto Leasing, Loans & Sales Financing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Auto Leasing, Loans & Sales Financing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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