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Consumer Automotive Financial Services in Ireland investigates the market for automotive financial services linked to sales of new and used passenger cars to individual buyers in Ireland. In addition to analysing the market for finance and leasing services, the study also covers motor insurance, road assistance, extended warranties, prepaid service contracts, GAP insurance and tyre 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 Ireland 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 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 39.9 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 40 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of 27 car manufacturer brands in Ireland. 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 the AA, AIB, Allianz Global Assistance, ALPHERA Financial Services, AutoProtect, AXA, Bank of Ireland, Bluestone Motor Finance, First Auto Finance Ireland, First Citizen Finance, Global Insurance Management and MAPFRE Assistance Ireland. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in Ireland.

Table Of Contents

Consumer Automotive Financial Services in Ireland
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 Ireland 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 . 6
Operating models . 7
Tied and non-tied providers 8
Abbreviations 8
PartnerBASE and market data annexe 8
Finaccord 9
2.0 MARKET ANALYSIS . 10
Introduction . 10
Passenger vehicle data . 11
New car sales in Ireland increased rapidly in both 2014 and 2015 . 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 for new cars expanded very rapidly between 2011 and 2015… . 13
… with its value having increased by well over 200% over this period of time . 14
Types of finance and leasing product 16
60% of private car finance in Ireland takes the form of hire purchase contacts… 16
… with most of the rest due to personal contract plans (PCPs) 16
Consumer automotive insurance, warranty and assistance markets . 17
Market sizes 17
In total, the automotive trade is likely to have sold contracts worth nearly EUR 40 million in 2015 . 17
Survey of automotive dealers and manufacturer brands - overview 20
Introduction 20
Provision of consumer automotive financial services . 20
Provision rates in Ireland vary considerably according to the type of financial service in question 20
Number and nature of dealer schemes . 22
Non-tied finance providers have upped the ante in the point-of-sale finance market . 22
Sources of road assistance distributed by dealers . 24
Road assistance is most commonly packaged with factory and extended warranties . 24
Consumer uptake of automotive financial services through dealers . 25
Take-up rates for point-of-sale finance in Ireland have risen sharply for both new and used cars. . 25
… and have also done so for prepaid service contracts 25
Purchase of extended warranties is mainly limited to buyers of used cars in Ireland . 25
Survey of automotive dealers and manufacturer brands - partnerships . 27
Introduction 27
Finance and leasing 28
First Auto Finance Ireland is the dominant non-tied provider of point-of-sale finance… 28
… followed by First Citizen Finance and Bank of Ireland… . 28
… with the latter also prominent as an external partner to a number of manufacturer brands. 30
Recent years have seen a considerable expansion in RCI Banque's Irish business . 30
A combined analysis implies that the leading firm holds over a third of new business . 32
Motor insurance 33
Three motor insurers hold partnerships with manufacturer brands . 33
Extended warranties . 35
MAPFRE Assistance Ireland is used most frequently by dealers as a non-tied partner… . 35
. while Allianz and AXA are the only external providers working with manufacturer brands 37
A combined analysis assigns an implied market share of almost 60% to the leading competitor . 39
Road assistance . 40
Close to a half of dealers work with non-tied providers for road assistance as well as with tied providers 40
Three firms compete for manufacturer brand mandates for road assistance . 42
GAP insurance 44
A significant proportion of Irish dealers distribute GAP insurance from non-tied providers… 44
. while seven manufacturer brands have a formal arrangement for this type of cover . 44
Prepaid service contracts . 47
Close to two thirds of dealers act as distributors of prepaid service contracts… 47
. which are now on offer from a very clear majority of manufacturer brands . 47
Tyre insurance 49
Very few dealers in Ireland sell this type of cover… . 49
. and manufacturer-branded schemes for it are also rare 50

LIST OF GRAPHICS / TABLES
0.0 EXECUTIVE SUMMARY . 1
Key market data for consumer automotive financial services in Ireland, 2015 . 2
1.0 INTRODUCTION 3
2.0 MARKET ANALYSIS . 10
Passenger car parc and new / used passenger car sales in Ireland, 2011 to 2015 11
Passenger car parc and new / used passenger car sales in Ireland, 2011 to 2015 (table) . 12
New passenger car registrations in Ireland, segmented by manufacturer group, 2015 12
New and used passenger car finance market in Ireland, segmented by distribution channel: volumes, 2011 to 2015 . 13
New and used passenger car finance market in Ireland, segmented by distribution channel: values, 2011 to 2015 14
New and used passenger car finance market in Ireland, 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 Ireland, 2015 16
Total revenues from consumer automotive insurance, warranty, assistance and service contract markets in Ireland, 2015 . 18
Total revenues from consumer automotive insurance, warranty assistance and service contracts in Ireland, 2015 (table) . 19
Comparison of the provision of each type of automotive financial service by dealers and manufacturer brands in Ireland, 2016 21
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Ireland, 2016 (table) 22
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Ireland, 2016 23
% availability of road assistance through factory warranties, annual service, extended warranties, motor insurance, prepaid service contracts and as a stand-alone product in Ireland, 2016 24
% of new and used car purchasers acquiring each type of automotive financial service at the point of sale in Ireland, 2016 . 26
Provision of finance and leasing by dealers in Ireland, 2015: provision rate, product sources and provider share of non-tied partnerships . 29
Provision of finance and leasing by manufacturer brands in Ireland, 2015: provision rate, operating models and weighted provider share of partnerships . 31
Implied market shares of new business for finance and leasing at the point of sale in Ireland, 2015 . 32
Provision of motor insurance by manufacturer brands in Ireland, 2015: provision rate, operating models and weighted provider share of partnerships . 34
Provision of extended warranties by dealers in Ireland, 2015: provision rate, product sources and provider share of non-tied partnerships . 36
Provision of extended warranties by manufacturer brands in Ireland, 2015: provision rate, operating models and weighted provider share of partnerships 38
Implied market shares of new business for extended warranties at the point of sale in Ireland, 2015 . 39
Provision of road assistance by dealers in Ireland, 2015: provision rate, product sources and provider share of non-tied partnerships . 41
Provision of road assistance by manufacturer brands in Ireland, 2015: provision rate, operating models and weighted provider share of partnerships . 43
Provision of GAP insurance by dealers in Ireland, 2015: provision rate, product sources and provider share of non-tied partnerships . 45
Provision of GAP insurance by manufacturer brands in Ireland, 2015: provision rate, operating models and weighted provider share of partnerships . 46
Provision of prepaid service contracts by dealers in Ireland, 2015: provision rate and product sources 47
Provision of prepaid service contracts by manufacturer brands in Ireland, 2015: provision rate, operating models and weighted provider share of partnerships 48
Provision of tyre insurance by dealers in Ireland, 2015: provision rate and product sources 49
Provision of tyre insurance by manufacturer brands in Ireland, 2015: provision rate and operating models . 50

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