|By PR Newswire||
|November 8, 2012 08:03 AM EST||
MOUNTAIN VIEW, Calif., Nov. 8, 2012 /PRNewswire/ -- Changing consumer patterns are galvanizing the automotive point-of-sale (POS) finance market in the United States. Easier access to information, increasing social connectivity and higher levels of awareness among consumers has led to a shift in demographics and behavior, as well as higher vehicle sales. To leverage this strong demand and maximize revenues, lenders are offering customized leasing terms for automobiles, rapidly broadening the scope of the POS finance market.
New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of the U.S. Automotive Point-of-sale Finance Market, finds that the market's annual lending value was $340.77 billion in 2011 and estimates this to reach $440.21 billion by 2018.
If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at firstname.lastname@example.org, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.
Demand for used vehicles is nearly three to four times greater than that for new ones. While retail sales of new vehicles will increase from 10.2 million in 2011 to 13.3 million by 2018, sale of used automobiles will go up from 24.4 million to 31.7 million in the same timeframe.
"The rise in second-hand sales drives the automotive POS finance market, as 70 percent of used units sold are financed through loans," said Frost & Sullivan Senior Research Analyst Ratika Garg. "The higher average retail price of vehicles and the introduction of new in-car technologies also sustain dependence on dealership financing."
However, the average miles traveled will decrease at a compound annual growth rate (CAGR) of 0.25 percent between 2011 and 2018. This will boost vehicle longevity, reducing demand and curbing POS financing. Further, with consumers becoming more internet-savvy, online and smartphone applications for direct auto loans are growing popular.
As competition among POS as well as loan origination channels intensifies, a long-term view on loan servicing, customer engagement and retention models is crucial. Dealers need to establish a robust and engaging customer retention model to foster trust and drive top-line growth.
"Value-added finance products, such as loans with free insurance, rebates or discounted repairs, will attract and retain customers," concluded Garg. "Employing mobile and iPad applications to make vehicle purchase an enjoyable, social experience will also enhance consumer loyalty."
Strategic Analysis of the U.S. Automotive Point-of-sale Finance Market is part of the Automotive & Transportation Growth Partnership Services program, which also includes research in the following markets: 360 Degree Perspective on Commercial Vehicle Maintenance in North America, Opportunity Analysis of Selected Pumps in the North American Automotive Aftermarket, North American Fuel Systems CAFE Standards and their Impact on the Aftermarket, and North American Snow Chains Aftermarket. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Strategic Analysis of the U.S. Automotive Point-of-sale Finance Market
Corporate Communications – North America
SOURCE Frost & Sullivan
- "All It Took Was One E-Mail to Larry," Says Former eBay Research Director As He Moves to Google
- Google Ramps Up Its Mobile Reach: Launches "Mobile Web Search"
- VoIP Update: Yahoo! Buys DialPad
- Ericsson + Napster = World's First "Wireless Digital Music" Brand
- Free Guest Passes for the SOA World Conference & Expo in NYC
- SYS-CON i-Technology Podcast August 30, 2005
- A Flair for Food - Health-Conscious Cooking Is This Chef's Cup Of Tea
- Sony PSP May Feature Porn
- Kapow Helps Seiko UK, Provides SMS Text-Alert Services
- South Korea is World's Largest Phisher