Asia Pacific Used Car Financing Market Size Booming at Significant CAGR of 8.77% to Reach USD 76.89 Billion by 2030

Published | 30 May 2024

Asia Pacific Used Car Financing Market is flourishing due to the growing popularity of pre-owned cars, rising car ownership rates, and deepening penetration of fintech and NBFCs.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Asia Pacific Used Car Financing Market size at USD 37.21 billion in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the Asia Pacific Used Car Financing Market size to expand at a CAGR of 8.77% reaching a value of USD 76.89 billion by 2030. The Used Car Financing Market in Asia Pacific region is propelled by an increasing demand for affordable cars and the ease of obtaining financing. Across the Asia Pacific region, the used car financing market has experienced notable growth, with a presence observed across South Asian countries. Various players, including small NBFCs, OEMs, and private banks, offer diverse options for obtaining financing for used cars. The market for used cars in these countries is characterized by fragmentation, with numerous OEMs, auction houses, and pre-owned dealers aiming to expand their inventory to provide customers with a wide array of financing choices. A significant portion of consumers opting for car purchases with financial assistance tend to rely on available financing services, primarily due to the accessibility of used car financing options, which typically range between 13–15% in cost. This presents a substantial opportunity for both manufacturers and financial institutions. Notably, in countries like India, the used car market is approximately 1.3 times larger than the new car market, indicating promising prospects for the sector.

Opportunity - Electric vehicles financing

The Asia Pacific region is witnessing a surge in the adoption of electric vehicles (EVs), fueled by a confluence of factors: supportive government policies, growing environmental consciousness, and declining battery prices. This trend extends beyond just cleaner roads, creating a ripple effect that is propelling the used car financing market forward. As EV ownership flourishes, a burgeoning pool of pre-owned electric vehicles enters the marketplace, ripe for financing opportunities. This ideal convergence aligns perfectly with the needs of budget-conscious buyers, who may find traditionally priced new EVs out of reach. Financial institutions are also recognizing the potential, with the prospect of lower risk associated with used EVs compared to their brand-new counterparts. It could translate into more competitive loan terms for pre-owned EVs, further incentivizing the switch to electric mobility.

Sample Request @ https://www.blueweaveconsulting.com/report/asia-pacific-used-car-financing-market/report-sample

Impact of Escalating Geopolitical Tensions on Asia Pacific Used Car Financing Market

Geopolitical tensions can have a multifaceted impact on the Asia Pacific Used Car Financing Market. Japan's decision to restrict most used-car sales to Russia, prompted by geopolitical factors and reinforced by sanctions, has abruptly halted a trade valued at nearly USD 2 billion annually. This move has disrupted established channels for exporting popular brands like Toyota, Honda, and Nissan, significantly altering market dynamics. Consequently, brokers and dealers are scrambling to redirect vehicles to alternative markets in regions like New Zealand, Southeast Asia, and Africa. While these shifts present challenges, they also bring opportunities, such as lower prices benefiting both consumers and businesses within the sector. As the landscape evolves, stakeholders are closely monitoring the unfolding implications of these geopolitical maneuvers on the Used Car Financing Market in the Asia Pacific region.

Asia Pacific Used Car Financing Market

Segmental Information

Asia Pacific Used Car Financing Market – By Body Style Type

Based on body style type, Asia Pacific Used Car Financing Market is divided into Hatchbacks, Sedan, Sports Utility Vehicles (SUVs), and Multipurpose Utility Vehicles (MUVs) segments. The hatchbacks segment holds the highest share in the Asia Pacific Used Car Financing Market by body style type. Their affordability has ensured sustained demand, even during the pandemic. Hatchbacks offer comparable performance and comfort to sedans at a lower tax rate, further propelling their popularity. This trend mirrors the new car market, attracting major international automakers to invest in compact car models. As digital car buying expands and value-added services increase, the used car market, particularly hatchbacks, is expected to witness further growth, fueled by the growing availability of financing options.

Asia Pacific Used Car Financing Market – By Country

The in-depth research report on the Asia Pacific Used Car Financing Market covers the market in the region’s major countries including China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Vietnam, and Rest of APAC. India holds the highest share in the Asia Pacific Used Car Financing Market and is expected to maintain its dominance during the period in analysis. It is primarily due to the surge in used car sales, driven by their cost-effectiveness compared to new vehicles. Accessible financing options have bolstered this growth, fostering a steady rise in demand for used car financing. The increasing adoption of digital technologies is a significant catalyst for this market. Digitization streamlines data management processes, reducing resource allocation and document storage challenges. As auto finance embraces digitization, opportunities abound for comprehensive digital solutions, including e-signatures and digital loan documentation, positioning players to gain a competitive edge in the market.

Competitive Landscape

The Asia Pacific Used Car Financing Market is fragmented, with numerous players serving the market. The key players dominating the Asia Pacific Used Car Financing Market include The Bank of China, HDFC Bank Ltd, Cholamandalam Investment and Finance Company Limited, Sundaram Finance Ltd, Bajaj Finserv, Mahindra Finance, Sumitomo Mitsui Banking Corporation Group, Korea Development Bank, Chandgan Auto Finance Co LTD, Ford Motor Credit Company, and BYD Auto Finance Company Limited. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.

Don’t miss the business opportunity of the Asia Pacific Used Car Financing Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and the Asia Pacific Used Car Financing Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Asia Pacific Used Car Financing Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

About Us

BlueWeave Consulting provides all-inclusive Market Intelligence (MI) Solutions to businesses regarding various products and services online & offline. We offer comprehensive market research reports by analyzing qualitative and quantitative data to boost your business solution's performance. BlueWeave has built its reputation by delivering quality inputs and nourishing long-lasting relationships with its clients. We are a promising digital MI solutions company providing agile assistance to make your business endeavors successful.

Contact Us:

BlueWeave Consulting & Research Pvt Ltd

+1 866 658 6826 | +1 425 320 4776 | +44 1865 60 0662

info@blueweaveconsulting.com