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

Sustained macroeconomic growth over the five years to 2018 has led to increased demand for financing options provided by operators in the Auto Leasing, Loans and Sales Financing industry. Rising consumer sentiment and declining unemployment translated into higher auto sales and rising car prices during the period. At the same time, historically-low interest rates and the availability of lengthier loan terms aided consumers' purchasing power, resulting in record automobile sales in the United States. Over the five years to 2023, IBISWorld expects industry revenue to increase. Given the industry's reliance on consumption patterns, more-accessible credit markets, relatively low unemployment and higher income will continue to spur industry growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$121bn
Annual Growth 13-18
4.4%
Forecast Growth 18-23
Profit
Employment
96,158
Businesses
5,949

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
  • The Fed is expected to continue its gradual process of interest rate normalization
  • Industry Report - Industry Locations Chapter

    Owing to the services provided by the industry, the number of establishments follows population patterns and industrial concentration in the United States. The Southeast region houses the largest percentage of industry establishments, accounting for an estimated 26.7% of total establishments. Furthermore, this region comprises 12 states, making it the major destination for companies in this industry to set up operations. Florida is the key state within this region, holding 7.5% of all establishments in the country.The West accounts for the second-largest portion of industry establishments at 15.4%. California, in particular, accounts for 11.6% of total industry establishments. Other important regions for this industry include the Mid-Atlantic (14.0%), Great Lakes (14.7%) ...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's in this report

    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 and industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand for financing
  • 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
  • Automotive
  • Businesses
  • Financial services
  • Other
  • 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
  • Profit
  • Other
  • Wages
  • Depreciation
  • Purchases
  • 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
    Toyota Motor Corporation, Ford Motor Credit Company LLC, Honda Motor Company, Santander Consumer USA Inc., Ally Financial Inc.,
  • Table: Toyota Motor Corporation - financial performance
  • Table: Ford Motor Credit Company LLC - financial performance
  • Table: Honda Motor Company - financial performance
  • Table: Santander Consumer USA Inc. - financial performance
  • Table: Ally Financial 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Access to credit (2009-2023)

  • 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.
  • What Our Customers Say

    Why buy this report?

    The Auto Leasing, Loans & Sales Financing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    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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