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Consumer Automotive Financial Services in Austria

  • January 2016
  • -
  • Finaccord
  • -
  • 63 pages

Consumer Automotive Financial Services in Austria investigates the market for automotive financial services linked to sales of new and used passenger cars to individual buyers in Austria. 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, GAP insurance, legal protection insurance and passenger accident 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 Austria 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 lending institutions.

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, GAP insurance, legal protection insurance and passenger accident 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 419.9 million 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 2015.

The report draws on a survey of 50 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of 36 car manufacturer brands in Austria. 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 AutoBank, CarGarantie, Denzel Bank, Garanta, ÖAMTC, Real Garant, Santander Consumer Bank, UNIQA, VB Leasing and Vienna Insurance Group. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in Austria.

Table Of Contents

Consumer Automotive Financial Services in Austria

TABLE OF CONTENTS
00 EXECUTIVE SUMMARY 1
10 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 Austria based on primary research 3
Methodology 3
Survey of dealers and manufacturers 3
Market data 4
Computation of market data is based on a complex set of assumptions and variables… 4
…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 7
Tied and non-tied providers 8
Abbreviations 8
PartnerBASE and market data annexe 8
Finaccord 9
20 MARKET ANALYSIS 10
Introduction 10
Passenger vehicle data 11
New and used car sales have stagnated in line with Austria's sluggish economy 11
Three manufacturer groups account for over a half of new car sales 12
Consumer automotive finance and leasing market 13
Market size and growth 13
Point-of-sale finance take-up rates have increased among buyers of both new and used cars 13
The fastest growth by value has been for used car finance arranged at the point of sale 14
Types of finance and leasing product 16
Almost 60% of private car finance takes the form of financial leasing… 16
… albeit a variety of lending products are also available 16
Consumer automotive insurance, warranty and assistance markets 18
Market sizes 18
In total, the automotive trade is likely to have sold policies worth almost EUR 420 million in 2015 18
Survey of automotive dealers and manufacturer brands - overview 21
Introduction 21
Provision of consumer automotive financial services 21
Availability of stand-alone GAP insurance has risen quite significantly in recent years but remains low… 21
… and is behind both legal protection and passenger accident cover as well as prepaid service contracts 21
Number and nature of dealer schemes 23
Austrian dealers work with non-tied providers for six of the eight product types investigated 23
Types of creditor insurance policy sold by dealers 25
It is most usual for comprehensive creditor insurance policies to be made available with automotive finance 25
Types of motor insurance policy sold by dealers 26
Most dealers selling motor insurance make comprehensive policies available 26
Sources of road assistance distributed by dealers 27
Road assistance is often bundled with other automotive financial services 27
Consumer uptake of automotive financial services through dealers 28
Take-up rates for point-of-sale finance in Austria have increased substantially since 2013 28
but have fallen for creditor insurance… 28
… and have generally changed little for other automotive financial services 28
Survey of automotive dealers and manufacturer brands - partnerships 30
Introduction 30
Finance and leasing 31
Santander Consumer Bank and AutoBank are the dominant non-tied providers in Austria… 31
… with the latter's portfolio having expanded quite rapidly in recent years 31
Almost all manufacturer brands collaborate with a captive or preferred finance provider 33
among which Porsche Bank is the largest competitor by weighted share of partnerships 33
while Santander Consumer Bank and Denzel Bank are the leading independent providers 33
Across all types of provider, the leading firm has an implied share of new business of almost 30% 35
Creditor insurance 36
BNP Paribas Cardif claims the highest weighted share of partnerships among manufacturer brands 36
Motor insurance 38
At least nine insurers compete as non-tied providers of motor insurance 38
Among manufacturer brands, Garanta is the most prominent non-captive provider… 40
… making it the leader in the combined analysis 42
Extended warranties 43
Three companies have achieved limited penetration as non-tied providers… 43
… two of which also hold manufacturer brand partnerships 45
Porsche Versicherung is likely to hold the highest market share of new business in this field 47
Road assistance 48
Road assistance is available in a variety of different formats where distributed as a non-tied service 48
Three main competitors compete for manufacturer brand mandates for road assistance 49
led by Austria's leading automotive club, ÖAMTC 49
GAP insurance 51
Non-tied providers of stand-alone cover have yet to make an appearance in Austria 51
Two underwriters claim partnerships with manufacturer brands 51
Prepaid service contracts 53
Manufacturer or importer tied propositions are also dominant in this arena 53
and all of these schemes are reportedly managed on an internal basis 54
Legal protection insurance 56
Over a half of dealers offer this type of insurance as a distinct form of cover 56
with three non-captive underwriters identified as partners of manufacturer brands 58
Passenger accident insurance 60
Dealers' activity mainly depends on their manufacturer brands albeit some non-tied providers are used 60
Partnerships for this type of insurance replicate those for legal protection cover 62

LIST OF GRAPHICS / TABLES

00 EXECUTIVE SUMMARY 1
Key market data for consumer automotive financial services in Austria, 2015 2
10 INTRODUCTION 3
20 MARKET ANALYSIS 10
Passenger car parc and new / used passenger car sales in Austria, 2011 to 2015 11
Passenger car parc and new / used passenger car sales in Austria, 2011 to 2015 (table) 12
New passenger car registrations in Austria, segmented by manufacturer group, 2015 12
New and used passenger car finance market in Austria, segmented by distribution channel: volumes, 2011 to 2015 13
New and used passenger car finance market in Austria, segmented by distribution channel: values, 2011 to 2015 14
New and used passenger car finance market in Austria, segmented by distribution channel: values and volumes, 2011 to 2015 (table) 15
% split between the different types of finance and leasing contract organised at the point of sale in Austria, 2015 17
Total revenues from consumer automotive insurance, warranty, assistance and service contract markets in Austria, 2015 19
Total revenues from consumer automotive insurance, warranty assistance and service contracts in Austria, 2015 (table) 20
Comparison of the provision of each type of automotive financial service by dealers and manufacturer brands in Austria, 2015 22
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Austria, 2015 (table) 23
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Austria, 2015 24
% split between the different types of creditor insurance policy sold at the point of sale in Austria, 2015 25
% split between the different types of motor insurance policy sold at the point of sale in Austria, 2015 26
% availability of road assistance through factory warranties, extended warranties, motor insurance, prepaid service contracts and as a stand-alone product in Austria, 2015 27
% of new and used car purchasers acquiring each type of automotive financial service at the point of sale in Austria, 2015 29
Provision of finance and leasing by dealers in Austria, 2015: provision rate, product sources and provider share of non-tied partnerships 32
Provision of finance and leasing by manufacturer brands in Austria, 2015: provision rate, operating models and weighted provider share of partnerships 34
Implied market shares of new business for finance and leasing in Austria, 2015 35
Provision of creditor insurance by manufacturer brands in Austria, 2015: provision rate, operating models and weighted provider share of partnerships 37
Provision of motor insurance by dealers in Austria, 2015: provision rate, product sources and provider share of non-tied partnerships 39
Provision of motor insurance by manufacturer brands in Austria, 2015: provision rate, operating models and weighted provider share of partnerships 41
Implied market shares of new business for manufacturer-branded and dealer-intermediated motor insurance in Austria, 2015 42
Provision of extended warranties by dealers in Austria, 2015: provision rate, product sources and provider share of non-tied partnerships 44
Provision of extended warranties by manufacturer brands in Austria, 2015: provision rate, operating models and weighted provider share of partnerships 46
Implied market shares of new business for extended warranties in Austria, 2015 47

Provision of road assistance by dealers in Austria, 2015: provision rate and product sources 48
Provision of road assistance by manufacturer brands in Austria, 2015: provision rate, operating models and weighted provider share of partnerships 50
Provision of GAP insurance by dealers in Austria, 2015: provision rate, product sources and provider share of non-tied partnerships 51
Provision of GAP insurance by manufacturer brands in Austria, 2015: provision rate, operating models and weighted provider share of partnerships 52
Provision of prepaid service contracts by dealers in Austria, 2015: provision rate and product sources 53
Provision of prepaid service contracts by manufacturer brands in Austria, 2015: provision rate, operating models and weighted provider share of partnerships 55
Provision of legal protection insurance by dealers in Austria, 2015: provision rate, product sources and provider share of non-tied partnerships 57
Provision of legal protection insurance by manufacturer brands in Austria, 2015: provision rate, operating models and weighted provider share of partnerships 59
Provision of legal protection insurance by dealers in Austria, 2015: provision rate, product sources and provider share of non-tied partnerships 61
Provision of passenger accident insurance by manufacturer brands in Austria, 2015: provision rate, operating models and weighted provider share of partnerships 63

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