Auto Finance Market Report 2026

The auto finance market size has grown rapidly in recent years. It will grow from $2.59 trillion in 2025 to $2.87 trillion in 2026 at a compound annual growth rate (CAGR) of 11.1%. The growth in the historic period can be attributed to expansion of vehicle ownership rates, growth of dealership-based financing models, increasing consumer access to credit, rising penetration of installment payment options, expansion of captive finance companies.

The auto finance market size is expected to see rapid growth in the next few years. It will grow to $4.47 trillion in 2030 at a compound annual growth rate (CAGR) of 11.7%. The growth in the forecast period can be attributed to increasing financing demand for electric vehicles, rising adoption of online vehicle purchases, expansion of alternative credit assessment models, growing focus on embedded finance solutions, increasing integration of fintech lenders. Major trends in the forecast period include increasing adoption of digital auto financing platforms, rising demand for flexible loan structures, growing use of AI-based credit scoring, expansion of financing for used vehicles, enhanced focus on customer-centric lending.

Increasing disposable incomes worldwide are playing a significant role in driving the growth of the auto finance market in the coming years. Disposable income refers to the portion of earnings that individuals or households can spend or save after taxes are deducted. Higher disposable incomes enable consumers to allocate part of their available funds toward purchasing or leasing vehicles to meet their transportation requirements. For example, in October 2023, according to data released by the Bureau of Economic Analysis (BEA), a US-based government agency that publishes official macroeconomic and industry statistics, disposable income in the United States rose from $18.24 trillion in the first quarter of 2022 to $19.88 trillion in the first quarter of 2023. Therefore, rising disposable incomes across the globe are expected to fuel the expansion of the auto finance market.

Major companies operating in the auto finance market are increasingly focusing on developing innovative solutions, such as cloud-native auto financing platforms, to address growing demand for more flexible, faster, and digitally accessible vehicle loan solutions, as consumers continue to favor online and hybrid vehicle purchasing and financing experiences. Cloud-native auto financing platforms are comprehensive vehicle financing systems built entirely on modern cloud infrastructure rather than adapted from legacy on-premise software. For instance, in November 2025, Fidelity National Information Services, Inc., a US-based financial technology company, launched an enhanced cloud-based version of its FIS Asset Finance platform with expanded consumer auto finance capabilities. The upgraded platform supports the entire lifecycle of auto loans and leases, including origination, credit decisioning, servicing, collections, asset management, and remarketing, within a single SaaS-based cloud-native solution. This technology uses automation, API-driven configurability, and digital-first workflows to reduce manual effort, speed up loan processing, enhance compliance, and offer lenders scalable infrastructure. Compared with traditional systems that often depend on manual documentation, fragmented processes, and legacy infrastructure, the FIS Asset Finance platform delivers integrated end-to-end servicing, improved operational efficiency, and a seamless self-service experience for borrowers. Such modern cloud-native auto finance solutions directly respond to rising customer expectations, regulatory challenges, and operational inefficiencies faced by lenders.

In September 2025, Arra Finance LLC, a US-based subprime auto finance company, acquired Crescent Bank’s auto finance division for an undisclosed amount. Through this acquisition, Arra Finance sought to quickly scale its auto loan origination capabilities, expand its dealer network, and strengthen servicing infrastructure to support increased lending volumes. Crescent Bank is a US-based FDIC-insured bank that offers auto financing services as part of its broader portfolio of financial products.

Major companies operating in the auto finance market are Ford Motor Credit Company LLC, General Motors Financial Company Inc., JPMorgan Chase, Bank of America Corporation, Hitachi Capital Corp, Santander Bank NA, Wells Fargo & Co., HSBC Holdings PLC, Volkswagen Finance Services, Capital One Financial Corporation, PNC Bank, Westlake Financial, HDFC Bank Limited, Carvana Co, Mahindra & Mahindra Financial Services Limited, Ally Financial Inc., Toyota Financial Services, Infiniti Financial Services, Standard Bank Group Ltd., Huntington Bancshares Inc., Equifax Inc., LendingTree Inc., Exeter Finance Corp, Honda Financial Services, TD Auto Finance, Autopay, Mercedes-Benz Financial Services, CarsDirect, AutoFi, Caribou Auto Refinancing.

Asia-Pacific was the largest region in the auto Finance market in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the auto 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 auto finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The auto finance market consists of revenues earned by entities by providing dealership financing services, lease financing purchase services, and hire purchase services. 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.

This product will be delivered within 1-3 business days.