1. Market Research
  2. > Automotive
  3. > Auto Services
  4. > Auto Insurance Market Trends
  5. > Consumer Automotive Financial Services in Spain

Consumer Automotive Financial Services in Spain

  • March 2016
  • -
  • Finaccord
  • -
  • 58 pages

Consumer Automotive Financial Services in Spain investigates the market for automotive financial services linked to sales of new and used passenger cars to individual buyers in Spain. In addition to analysing the market for finance and leasing services, the study also covers creditor insurance, motor insurance, road assistance, extended warranties, prepaid service contracts and GAP insurance, plus two niche products, namely loss of license insurance and replacement vehicle insurance.

Using survey results for average take-up rates for finance and leasing propositions at the point of sale, data for the size and growth of the automotive finance and leasing market for consumers in Spain is provided in terms of gross advances and assets leased for 2011 to 2015 with splits between finance for new and used cars and between finance organised through dealerships at the point of sale and directly with banks or other finance providers.

Moreover, also by means of data for average take-up rates, the markets for creditor insurance, motor insurance, road assistance, extended warranties, prepaid service contracts and GAP insurance are sized in terms of gross written premiums and other revenues sold through the automotive trade (i.e. via dealers and manufacturers) in 2015. These markets, estimated to be worth EUR 1.08 billion in total in 2015, are broken down between new and used cars, and between new contracts sold during 2015 and in-force business sold in previous years but still being renewed in 2012.

The report draws on a survey of 70 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of 41 car manufacturer brands in Spain. The PartnerBASE™ dataset that accompanies the report details each of the marketing initiatives for consumer automotive financial services traced by Finaccord for both dealers and manufacturers; a market data annexe is also available in a convenient spreadsheet format so that there is no need to re-enter key data points from the report.

In addition to captive finance companies owned by manufacturer brands, organisations covered by the report include Aon Gil y Carvajal, AXA, Banco Sabadell, BBVA Finanzia, CaixaBank, Cetelem, Liberty, MAPFRE, Marsh, MetLife, Mutua Madrileña, RACC, RACE, Real Garant and Santander Consumer. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in Spain.

Table Of Contents

Consumer Automotive Financial Services in Spain
0.0 EXECUTIVE SUMMARY . 1
1.0 INTRODUCTION 3
What is this report about? 3
The focus of the report is on financial services related to the sale of passenger cars to individuals 3
Rationale . 3
The provision of financial services is essential to support both car sales and profitability 3
This report offers a detailed updated analysis of the subject in Spain based on primary research 3
Methodology . 3
Survey of dealers and manufacturers 3
Market data . 5
Computation of market data is based on a complex set of assumptions and variables… . 5
…in order to provide market segmentations in unrivalled detail 5
External sources . 6
Definitions . 6
Finance and leasing products 6
Insurance, warranty and assistance products . 7
Operating models . 8
Tied and non-tied providers 8
Abbreviations 9
PartnerBASE and market data annexe 9
Finaccord 9
2.0 MARKET ANALYSIS . 11
Introduction . 11
Passenger vehicle data . 12
Spain's market for new car sales has recovered from the nadir of 2012 12
VW group leads the market for new car sales thanks to the strength of the SEAT and Volkswagen brands . 13
Consumer automotive finance and leasing market 14
Market size and growth 14
Point-of-sale finance for new cars expanded rapidly between 2011 and 2015… . 14
… in terms of both volume and value of new contracts . 15
Types of finance and leasing product 17
A majority of private car finance takes the form of simple loans with no option to return the vehicle… . 17
… albeit both operating and financial leasing have apparently grown in popularity 17
Consumer automotive insurance, warranty and assistance markets . 18
Market sizes 18
In total, the automotive trade is likely to have sold contracts worth over EUR 1 billion in 2015 . 18
Survey of automotive dealers and manufacturer brands - overview 21
Introduction 21
Provision of consumer automotive financial services . 21
Dealer provision rates for prepaid service contracts have almost doubled since the last survey. 21
. although GAP insurance, while quite popular among manufacturer brands, is not often sold by dealers . 21
Number and nature of dealer schemes . 23
On average, Spanish dealers use two providers for finance and leasing . 23
Types of creditor insurance policy sold by dealers . 25
In a majority of cases, dealers report availability of comprehensive creditor insurance policies 25
CONSUMER AUTOMOTIVE FINANCIAL SERVICES IN SPAIN
© FINACCORD (04/2016) II
Types of motor insurance policy sold by dealers 26
Where motor insurance is available from car dealers, comprehensive cover is always an option 26
Sources of road assistance distributed by dealers . 27
Road assistance is most commonly packaged with factory warranties and motor insurance 27
Consumer uptake of automotive financial services through dealers . 28
Take-up rates for point-of-sale finance in Spain have risen slightly among buyers of new cars 28
Both extended warranties and prepaid service contracts have seen a sharp rise in take-up rates . 28
Survey of automotive dealers and manufacturer brands - partnerships . 30
Introduction 30
Finance and leasing 31
There are relatively few non-tied providers of finance and leasing active in Spain . 31
As a brand partner, Santander Consumer obtains the highest ranking among external providers. 33
… followed by Cetelem . 33
RCI Banque saw pre-tax profits in Spain increase by nearly 50% in its most recent reporting year 33
Across all types of provider, the leader has an implied market share of new business of over 19% . 35
Two non-captive providers have become a great deal more prominent in recent years 35
Creditor insurance . 36
By weighted share of partnerships, Cardif is comfortably the dominant partner in this sphere. . 36
. although a further six non-captive providers are also in evidence . 36
Motor insurance 38
MAPFRE and Mutua Madrileña work most commonly with dealers as non-tied providers. . 38
AXA and MAPFRE are the leading external underwriters to work directly with manufacturer brands… . 40
. with both captive and external brokers also visible in this field 40
The leading provider holds over 16% of the market in the combined analysis . 42
Extended warranties . 43
Spanish dealers rarely use non-tied providers and when they do there is no dominant provider 43
Real Garant holds several significant manufacturer partnerships for extended warranties… 45
… making it the likely leader in the combined analysis 47
Road assistance . 48
In a majority of cases, dealers concentrate on intermediating manufacturer-branded road assistance only 48
Six external assistance firms are active as partners of manufacturer brands to one degree or another . 49
GAP insurance 51
No non-tied providers of GAP insurance are visible in Spain… 51
. and only three underwriters of manufacturer-branded programs are identifiable . 51
Prepaid service contracts . 53
Manufacturer or importer tied propositions are also dominant in the market for prepaid service contracts… . 53
… and more than a half of manufacturer brands have a proposition in this field 53
Loss of licence insurance . 55
Only dealers representing two manufacturer groups are involved in this arena. 55
. which indicates that it is probably not a concept with significant sales potential… . 56
Replacement vehicle insurance . 57
… and a similar assertion applies to replacement vehicle insurance… 57
. with ARAG and Caser prominent as underwriters of manufacturer-branded products 57

LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY . 1
Key market data for consumer automotive financial services in Spain, 2015 2
1.0 INTRODUCTION 3
2.0 MARKET ANALYSIS . 11
Passenger car parc and new / used passenger car sales in Spain, 2011 to 2015 12
Passenger car parc and new / used passenger car sales in Spain, 2011 to 2015 (table) . 13
New passenger car registrations in Spain, segmented by manufacturer group, 2015 13
New and used passenger car finance market in Spain, segmented by distribution channel: volumes, 2011 to 2015 14
New and used passenger car finance market in Spain, segmented by distribution channel: values, 2011 to 2015 15
New and used passenger car finance market in Spain, segmented by distribution channel: values and volumes, 2011 to 2015 (table) . 16
% split between the different types of finance and leasing contract organised at the point of sale in Spain, 2016 17
Total revenues from consumer automotive insurance, warranty, assistance and service contract markets in Spain, 2015 . 19
Total revenues from consumer automotive insurance, warranty assistance and service contracts in Spain, 2015 (table) . 20
Comparison of the provision of each type of automotive financial service by dealers and manufacturer brands in Spain, 2016 22
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Spain, 2016 (table) 23
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Spain, 2016 24
% split between the different types of creditor insurance policy sold at the point of sale in Spain, 2016 25
% split between the different types of motor insurance policy sold at the point of sale in Spain, 2016 . 26
% availability of road assistance through factory warranties, annual service, extended warranties, motor insurance, prepaid service contracts and as a stand-alone product in Spain, 2016 27
% of new and used car purchasers acquiring each type of automotive financial service at the point of sale in Spain, 2016 . 29
Provision of finance and leasing by dealers in Spain, 2015: provision rate, product sources and provider share of non-tied partnerships . 32
Provision of finance and leasing by manufacturer brands in Spain, 2015: provision rate, operating models and weighted provider share of partnerships . 34
Implied market shares of new business for finance and leasing at the point of sale in Spain, 2015 . 35
Provision of creditor insurance by manufacturer brands in Spain, 2015: provision rate, operating models and weighted provider share of partnerships . 37
Provision of motor insurance by dealers in Spain, 2015: provision rate, product sources and provider share of non-tied partnerships . 39
Provision of motor insurance by manufacturer brands in Spain, 2015: provision rate, operating models and weighted provider share of partnerships . 41
Provision of extended warranties by dealers in Spain, 2015: provision rate, product sources and provider share of non-tied partnerships . 44
Provision of extended warranties by manufacturer brands in Spain, 2015: provision rate, operating models and weighted provider share of partnerships . 46
Implied market shares of new business for extended warranties at the point of sale in Spain, 2015 . 47
Provision of road assistance by dealers in Spain, 2015: provision rate and product sources . 48
Provision of road assistance by manufacturer brands in Spain, 2015: provision rate, operating models and weighted provider share of partnerships . 50
Provision of GAP insurance by dealers in Spain, 2015: provision rate and product sources 51
Provision of GAP insurance by manufacturer brands in Spain, 2015: provision rate, operating models and weighted provider share of partnerships . 52
Provision of prepaid service contracts by dealers in Spain, 2015: provision rate and product sources 53
Provision of prepaid service contracts by manufacturer brands in Spain, 2015: provision rate, operating models and weighted provider share of partnerships 54
Provision of loss of licence insurance by dealers in Spain, 2015: provision rate and product sources. 55
Provision of loss of licence insurance by manufacturer brands in Spain, 2015: provision rate and operating models 56
Provision of replacement vehicle insurance by dealers in Spain, 2015: provision rate and product sources . 57
Provision of replacement vehicle insurance by manufacturer brands in Spain, 2015: provision rate, operating models and weighted provider share of partnerships 58

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Ahmad

+1 718 618 4302

Purchase Reports From Reputable Market Research Publishers
Global and China UBI Industry Report, 2016-2020

Global and China UBI Industry Report, 2016-2020

  • $ 2100
  • Industry report
  • August 2016
  • by Research In China

Staring from 2012, UBI in China lags behind that in foreign countries. Hence, domestic UBI products are operated with reference to some foreign mature models. Various Chinese parties are actively promoting ...

UK Private Motor Insurance: Competitor Dynamics, Verdict Financial

UK Private Motor Insurance: Competitor Dynamics, Verdict Financial

  • $ 1295
  • Industry report
  • August 2016
  • by Verdict Financial

Summary The UK Private Motor Insurance market is a highly competitive market. Insurers are struggling to make their books profitable, as claims continue to prove challenging. The number of insurers active ...

Automobile Insurance - Industry Market Research Report

Automobile Insurance - Industry Market Research Report

  • $ 1020
  • Industry report
  • August 2016
  • by Ibisworld

Road to recovery: Providers will benefit from more car purchases and higher interest rates Automobile Insurance An intensified focus on financial positions and net premium growth for liability insurance ...


Download Unlimited Documents from Trusted Public Sources

Auto Insurance Industry in Europe - Forecast

  • November 2016
    36 pages
  • Auto Insurance  

    Insurance  

  • Europe  

    World  

View report >

The future of the Insurance Industry in the US

  • September 2016
    8 pages
  • Insurance  

    Auto Insurance  

  • United States  

View report >

Insurance Markets in the UK

  • August 2016
    17 pages
  • Usage Based Ins...  

    Insurance  

  • United Kingdom  

View report >

ref:plp2016

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.