Revving up: An increase in accessible credit markets and decrease in unemployment will lead to continued industry growth
Auto Leasing, Loans & Sales Financing in California
California's Auto Leasing, Loans and Sales Financing industry revenue is driven by the purchase of goods that require financing; consequently, consumers are most active in this industry when they anticipate continued financial stability. With California's per capita disposable income rising over the five years to 2017, and the state unemployment rate projected fall from in 2017, industry operators are poised to benefit. Furthermore, historically low interest rates and lengthening loan terms aided consumer purchasing power in the golden state. In addition to favorable economic conditions, lower gas prices and a relatively high average vehicle age aided industry operators, resulting in record automobile sales at the national level. Given the industry's reliance on consumption patterns, more accessible credit markets, decreasing unemployment and higher income, trends in industry growth will continue over the five years to 2022.
This industry includes establishments that either provide strictly sales financing or both sales financing and leasing. Sales financing establishments are primarily engaged in lending money for the purpose of providing collateralized goods through a contractual-installment sales agreement, either directly from or through arrangements with dealers. Industry participants generate revenue through the interest and fees that are included in the installment payments of borrowers.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Table of Contents
A selection of companies mentioned in this report includes:
- Ford Motor Credit Company LLC
- Ally Financial Inc.
- Toyota Motor Corporation
- Honda Motor Company
- Santander Consumer USA Inc.