Germany Car Finance Market is expected to grow at a robust CAGR, owing to the emergence of online car finance applications

Germany Car Finance Market is in the growing stage, owing to the emergence of online car finance applications, adoption of digital technologies for car financing and increasing vehicle prices. The Car Finance Industry in Germany is highly fragmented with key players such as Volkswagen Bank GmbH, Mercedes-Benz Bank AG, Banque PSA Finance S.A., Bank11 für Privatkunden und Handel GmbH, Süd-West-Kreditbank Finanzierung GmbH, Deutsche Bank AG etc.

Germany Car Finance Market is witnessing robust growth in terms of production and demand as Germany is the world's largest market for Cars.
Germany Car Finance Market was valued at USD ~ in 2021 and is projected to grow to USD ~ by 2027F, registering a CAGR of ~% during the forecast period (2022P-2027F).
The inflation in commodity prices has compelled car manufacturing companies to increase vehicle prices in the last few years.

Digitalizing Car Finance Industry: Financial services institutions are implementing digital solutions at a faster pace to remain competitive. Advance technologies like block chain, AI, digital payment systems, and online mobile banking system, are the most prominent technologies used by financial industries today to provide the best car finance services to clients. Moreover, going digital can solve many challenges and deliver real benefits for both parties. “Going digital” helps foster, maintain, and grow the relationship between the dealer and their customers. Furthermore, new advances in digital and cloud technology have created valuable new innovations and trends in auto financing. This now enables auto dealers to manage all aspects of their lending program. It is used to take several days to process the application manually. However, due to digitalization and advancement in technologies, the same process takes only a few minutes now. Therefore, customers can easily avail quick and hassle-free credits which is further boosting the Car Finance Market in Germany.

Prevalence of Car Loan Among Millennial Population: German millennials' attitude regarding cars show that majority of Germans born since 1980, now own or lease a vehicle, which is more than the entire EU. Today, the usage of cars is more common among millennials in Germany, than in the entire EU. Among young Germans, majority said they would prefer to purchase a vehicle with a combustion engine, while only a few said they would choose an electric or a hybrid vehicle. As younger consumers have become more susceptible to financing their automotive purchases than previous generations, car financing has grown in popularity in Germany during the past several years. Therefore, Germany's millennials prefer loans and paying installments which is expected to increase and boost the Car Finance Industry in Germany during the forecast period.

Analysts at Ken Research in their latest publication “Germany Car Finance Market Outlook to 2027F – By Vehicle Type (New Car, Used Car), By Type of Car (Hatchbacks, Sedans, Luxury Cars, Sports Utility Vehicle), By Provider (Banks, NBFCs, OEMs and Others)” observed that Germany Car Finance Market has shown considerable growth in the last five years. In the upcoming years, it is predicted to expand more rapidly due to emergence of online car finance applications, the adoption of digital technologies for car financing and increasing vehicle prices. The Car Finance Market in Germany is expected to grow at ~% CAGR over the forecasted period 2022P-2027F.

Key Segments Covered in the report

By Vehicle Type

New Car

Used Car

By Type of Car

Hatchbacks

Sedans

Luxury Cars

Sports Utility Vehicle

By Provider

Banks

NBFCs