Auto finance market to be valued at $5.6t by 2031

The passenger vehicles segment held the largest share of revenue in 2021.

The global auto finance market is expected to reach $5.6t by 2031, with a compound annual growth rate (CAGR) of 11.5% from 2022 to 2031, according to a report by Allied Market Research.

The auto finance market is valued at $1.9t in 2021.

Auto finance refers to financial products that allow someone to acquire a vehicle, including car loans, leases, and other products using any arrangement other than a full-cash single lump payment.

By vehicle type, the passenger vehicles segment held the largest share in 2021, holding over two-fifths of the global auto finance market revenue.

By purpose, the loan segment accounted for the highest share in 2021, generating around half of the global auto finance market revenue.

The leasing segment recorded the fastest CAGR of 16.2% during the forecast period, said Allied Market Research.