Automotive Finance Market Report 2026

The automotive finance market size has grown strongly in recent years. It will grow from $312.45 billion in 2025 to $339.36 billion in 2026 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to expansion of vehicle ownership financing, growth of bank-led auto lending programs, rising consumer credit availability, development of dealer-based financing networks, adoption of installment-based repayment models.

The automotive finance market size is expected to see strong growth in the next few years. It will grow to $473.59 billion in 2030 at a compound annual growth rate (CAGR) of 8.7%. The growth in the forecast period can be attributed to increasing demand for ev and mobility financing, rising use of alternative credit assessment models, expansion of embedded finance in auto sales, growing adoption of digital loan origination platforms, increased focus on instant credit approvals. Major trends in the forecast period include increasing adoption of digital auto loan platforms, rising demand for flexible financing options, growing integration of AI-based credit scoring, expansion of oem-captive financing models, enhanced focus on seamless online loan processing.

Rising vehicle prices are expected to drive the growth of the automotive finance market in the coming years. Vehicle prices refer to the amount set by manufacturers to design, produce, and introduce vehicles into the market. Automotive finance enables consumers to purchase vehicles, particularly higher-priced models that may otherwise be unaffordable through upfront payments. For example, in July 2025, according to Kelley Blue Book Co. Inc., a US-based vehicle valuation and information company owned by Cox Automotive, the average transaction price (ATP) of a new vehicle in the United States reached US $48,907, reflecting a 1.2% year-over-year increase and marking the largest annual gain recorded in 2025. Therefore, the steady rise in vehicle prices is contributing to the expansion of the automotive finance market.

Major companies operating in the automotive finance market are increasingly introducing innovative products supported by advanced technologies, such as RateSetter technology, to reach wider customer segments, boost sales volumes, and enhance revenue generation. RateSetter offers personalized loan solutions by providing instant online rate quotations that do not affect a customer’s credit score. For instance, in January 2023, Metro Bank Plc., a UK-based retail banking institution, launched a digital car loan product under the RateSetter brand. These digital loans are structured as hire purchase agreements for used vehicles and are currently available through motor brokers utilizing advanced RateSetter technology. A key differentiator of this offering is the automated, real-time decision-making process that generates customized loan quotes for individual customers. This approach enables a paperless application journey, allowing eligible borrowers to receive instant approvals and take delivery of their vehicles on the same day. As a result, the end-to-end process, including invoicing, is delivered as a seamless digital experience for both customers and brokers.

In June 2025, Arra Finance LLC, a US-based subprime auto finance provider, acquired the auto finance division of Crescent Bank for an undisclosed amount. Through this acquisition, Arra Finance sought to substantially expand its auto loan origination capacity and dealer network, while integrating Crescent Bank’s servicing infrastructure and technology platform to accelerate credit application decision-making. Crescent Bank was a US-based FDIC-insured institution that offered indirect auto financing nationwide through dealer-originated loans and associated servicing operations.

Major companies operating in the automotive finance market are Ally Financial Inc., Bank of America Corporation, Capital One Financial Corporation, Chase Auto Finance, Daimler Financial Services India Private Limited, Ford Motor Credit Company, General Motors Financial Company Inc., Hitachi Capital Corporation, Toyota Financial Services, Volkswagen Financial Services, BNP Paribas, HDFC Bank Limited, Standard Bank Group Ltd., Banco Bradesco SA, Wells Fargo & Co., HSBC Holdings PLC, Oodle Car Finance Services Limited, Lendbuzz Inc., OTO Capital, Bajaj Finance Limited, Moneybarn Limited, Yixin Group Limited, Caribou Financial Inc., Nissan Infiniti Finance, Honda Motor Co. Ltd.

Europe was the largest region in the automotive finance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive finance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive finance market includes revenues earned by entities by providing financial services that are used in purchasing a vehicle, often one of higher value than would otherwise be possible. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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