Australia Used Car Financing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.96 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Australia Used Car Financing Market Analysis
Australia used car financing market was valued at USD 580.54 million in 2021 and expected to surpass a net valuation of USD 971.48 million by 2027 end, registering a solid CAGR growth of 8.96% during the forecast period.
The used car market in Australia is highly consolidated with several OEM, auction houses, and pre-owned dealers who thrive to expand their fleet size to offer a wide pool of financing opportunities to their clients.
During Covid-19, Australia used car financing witnessed a steady decline owing to the spread of the virus and people avoided purchasing cars amid an economic crisis. In addition, markets, showrooms, and auction events were closed down as of strict lockdown measures prevailed by the Australian government. Although, after Q1 2021, everything was again on track with the used car financing business achieving a growth phase as well.
Major consumers across Australia are facing financial instability post-pandemic surge in the selling of newer cars. This is likely to mark as major growth lever for the market. In addition, the rising consumer preference towards owning a personal vehicle and avoiding public transportation is also identified as key fueling factor for used car market across the nation. Ownership of cars, which used to be a status symbol long ago, has become a necessity in recent times and thus is deeply identified by the key financers and pre-owned car owners.
There is no established national association in place in Australia to maintain the finacing business for used cars. Dealer clusters form their own community-based organizations to ensure that pricing is comparable within the cluster and to hold gatherings to boost support for the group. By working with multi- and auto-financing businesses, independent used car dealers reduce their exposure to buyers' financial concerns. Cars older than ten years are not eligible for financing because of their reduced lifespan, increased risk of damage, and diminished value. When compared to new car purchases, there is a higher proportion of cash payments because the price can be 20-30% lower.
Condiering these factors, demand for used car financing in Australia is ected to witness moderate groth rate during the forecast period.
Australia Used Car Financing Market Trends
This section covers the major market trends shaping the Australia Used Car Financing Market according to our research experts:
OEM Based Financing Gaining Momentum
Any car that has been prior owned and is now being resold through a private seller, classified ads, or local dealers without undergoing a thorough vehicle inspection test by experts is considered a used car. On the other hand, a certified pre-owned (CPO) car vehicle has previously been extensively inspected (pre-purchase inspection) and reconditioned properly to perfection by professionals.
In Australia, changing consumer preferences and ease of owning a pre-owned car at a much more affordable price have provided significant traction to the market. Australia is an emerging economy with lowered GDP growth rate, people have low purchasing power. Used car financing helps people to own a personal car at the much-lowered price at affordable EMI instalments. This reduces the burden of one-time payments just with a 30% initial down payment.
Moreover, the OEM are seen offering wider pool of used car under their fleet and offers better interest rates compared to other. In addition, the trust factors which has come out with increased fraud cases globally has resulted in gaining traction among OEM used financing where consumer feels save to get the car financed from OEM itself.
Under OEM financing, key automakers in Australia who are offering the pre-owned car fleet also offer chances of getting the vehicle financed based on a certain time period and rate of interest regulation by country's nationalized banks.
Considering these prominent factors for OEM used car landscape in Australia, demand for used car based on OEM financing is expected to witness moderate growth rate during the forecast period.
Hatchback Segment To Gain Traction
Owing to the affordability of hatchbacks, the sales of this segment of the used car market were least disrupted during the global pandemic. Hence a little over 50% of the car buyers in the country may opt for a user over a new vehicle.
Hatchbacks are popular for a variety of reasons, including lower taxation than sedans while providing the same performance and comfort. Furthermore, because there are so few new models that qualify for these tax breaks, the price of used hatchbacks remains unaffected.
When it comes to secondhand hatchbacks, these vehicles are an appealing alternative to sedans and SUVs which makes the overall pricing at a higher level. One may get hatchbacks in decent shape that are 5 to 10 years old on the market.
With changing consumer preferences in terms of fuel economy, cost, and overall maintenance benefits, demand has been witnessing immense growth for the adoption of the used hatchback. today a diverse range of hatchbacks are on the market, ranging from Japanese to South Korean to American models making consumers first choice in the Australia.
Moreover, due to the increased digitization and the ability of the companies to provide immersive purchase experiences remotely, the used car market is expected to witness significant growth. Furthermore, the rise in the value-added service offering and the variety of finance providers offering credit for used cars will also contribute to the growth of the hatchback segmet in Australia used car market in the region.
Australia Used Car Financing Industry Overview
The market for used car financing in Australia is on the fragmented side. The presence of many organized and unorganized players has created such a market scenario. Also, most auto manufacturers, apart from offering their own financing, have tie-ups with banks and other financial institutions to offer a wider choice for their customers. But the relatively easier procedures to procure a loan from various NBFCs are expected to tilt the market in their favor.
Financiers including OEM, banks, and NBFCs have made stregatic forefront in order to witness improved sales bars in the market. Key major players ruling the market include Adelaide Vehicle Centre, Dutton Group, Mozo Pty Ltd., National Australia Bank Limited and Australia and New Zealand Banking Group Limited.
Australia Used Car Financing Market Leaders
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Adelaide Vehicle Centre
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Dutton Group
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Mozo Pty Ltd.
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National Australia Bank Limited
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The Australia and New Zealand Banking Group Limited
*Disclaimer: Major Players sorted in no particular order
Australia Used Car Financing Market News
In September 2021, OzCar, a used-car dealership relocated its location to Rockhampton and established along the Bruce Highway close to the Zed motels. Although the company has 17 yards already open for used car sales, only four of them are currently functioning at full capacity.
Australia Used Car Financing Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porters 5 Force Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value USD Million)
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5.1 Car Type
- 5.1.1 Hatchbacks
- 5.1.2 Sedans
- 5.1.3 Sports Utility Vehicle
- 5.1.4 Multi-Purpose Vehicle
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5.2 Financier
- 5.2.1 OEM
- 5.2.2 Banks
- 5.2.3 NBFC's
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 Adelaide Vehicle Centre
- 6.2.2 OzCar Pty Ltd.
- 6.2.3 Motoroma
- 6.2.4 Dutton Group
- 6.2.5 Heatland Motors
- 6.2.6 LSH Auto Australia
- 6.2.7 Quantum Savvy Pty Ltd
- 6.2.8 Mozo Pty Ltd.
- 6.2.9 Wisr Finance Pty Ltd
- 6.2.10 The Australia and New Zealand Banking Group Limited
- 6.2.11 Plenti Pty Limited
- 6.2.12 Pepper Money Limited
- 6.2.13 National Australian Bank
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityAustralia Used Car Financing Industry Segmentation
Used financing is the service that offers used car to consumers at much-lowered prices at affordable EMI instalment. These instalments are divided based on loan amount, tenure with some fixed rate of interest.
Based on the car type, the market is segmented into hatchback, sedan, and utility vehicles. Based on the financier, the market is segmented into OEMs, Banks, and NBFCs. The report covers the market size in value (USD million) for all the above-mentioned segments
| Car Type | Hatchbacks |
| Sedans | |
| Sports Utility Vehicle | |
| Multi-Purpose Vehicle | |
| Financier | OEM |
| Banks | |
| NBFC's |
Australia Used Car Financing Market Research FAQs
What is the current Australia Used Car Financing Market size?
The Australia Used Car Financing Market is projected to register a CAGR of 8.96% during the forecast period (2024-2029)
Who are the key players in Australia Used Car Financing Market?
Adelaide Vehicle Centre, Dutton Group, Mozo Pty Ltd., National Australia Bank Limited and The Australia and New Zealand Banking Group Limited are the major companies operating in the Australia Used Car Financing Market.
What years does this Australia Used Car Financing Market cover?
The report covers the Australia Used Car Financing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Australia Used Car Financing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Australia Used Car Financing Industry Report
Statistics for the 2024 Australia Used Car Financing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia Used Car Financing analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
