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Automotive Finance and Leasing for Consumers in Latin America delivers comprehensive and in-depth research covering the USD 57 billion market for private car finance in six countries in Latin America, namely Argentina, Brazil, Chile, Colombia, Mexico and Peru.

Based on a survey of 395 dealers in these countries and an investigation typically covering between 20 and 40 manufacturer brands in each territory, the study delivers unique insights into the market for finance and leasing for new and used passenger cars bought by consumers, with fully comparable and standardised data describing market values and volumes.

Table Of Contents

Automotive Finance and Leasing for Consumers in Latin America
Table of Contents

Executive Summary

Introduction

Regional overview

Argentina
Brazil
Chile
Colombia
Mexico
Peru
List of Graphics / Tables



0.0 EXECUTIVE SUMMARY

New car sales to individual buyers grew most rapidly in Mexico and Peru between 2010 and 2014

Brazil hosts the largest automotive finance and leasing market in the region by volume of contracts...

...and holds over two thirds of the six-country market by value

For new cars, take-up rates for point-of-sale finance and leasing average nearly 60% across the region...

...and are highest for new cars in Mexico and for used cars in Brazil

As an unweighted average, dealers work with a greater number of non-tied providers than tied ones...

... although tied providers are preferred by a majority of dealers in Mexico

The list of top 15 providers is composed of a mixture of captives, joint ventures and independent players…

… and is led by captives belonging to GM and VW…

...with Itaú Unibanco and Santander emerging as the most prominent independent competitors

BBVA is active in the passenger car finance markets of five of the six countries investigated

1.0 INTRODUCTION

What is this report about?

The focus of the report is on finance and leasing for new and used cars bought by individuals

Rationale

The provision of financial services is essential to support both car sales and profitability

This report offers a unique analysis of the subject in Latin America based on primary research

Methodology

Survey of dealers and manufacturers

Market data

Computation of market data is based on a variety of inputs including the results of the dealer survey

External sources

Definitions

Point of sale and direct lending

Finance and leasing products

Operating models

Tied and non-tied providers

Abbreviations

Exchange rates

Graphical analyses

PartnerBASE and market data annexe

Finaccord

2.0 REGIONAL OVERVIEW

Passenger vehicle data

Car parc

There are nearly 100 million passenger cars registered in Latin America...

...and this number has risen by over 20 million since 2010

New car sales to individuals

New car sales grew from 2010 to 2013 but then dipped in 2014...

...with weak sales in Brazil counterbalancing growth in smaller markets

Used car sales

Brazil hosts the largest used car market in the region, followed by Mexico…

… but dealers play a marginal role in Mexico's used car market due to imports from the US

Sales by manufacturer groups

Across the six countries, GM and VW are the leading manufacturer groups…

...while Fiat's strength in Brazil gives Fiat Chrysler third place at a regional level

Finance and leasing

Survey of automotive dealers

Virtually all dealers offer finance and leasing products to buyers of new and used cars

Dealers in Brazil work with by far the largest number of finance providers...

... and those in Mexico the least as a result of their preference for tied providers

Where offered, the take-up rate for finance and leasing with new cars is always 40% or more...

...and reaches 65% for used cars in one country

Types of finance and leasing product sold by dealers

Simple loans with no option to return the car at the end of the contract make up around 80% of the total...

...though ones with an option to return the car make up around one fifth of the market in Chile

Manufacturer brand survey results

All manufacturer brands in Argentina and Mexico offer finance and leasing products...

… although many (mainly smaller ones) in Colombia and Peru do not

Several manufacturer brands in Brazil have introduced finance and leasing products in the recent past

More than a half of all manufacturer brands rely solely on external partners

...albeit more than a quarter use their own captives exclusively

Market size

Brazil makes up more than a half of the region's finance and leasing market by volume...

...though Mexico's market for direct lending is nearly as large by the same measure

Point-of-sale finance for used cars is an especially significant segment of the market in Brazil

Mexico's regional market share by value falls because of person-to-person sales of used cars

Nearly 80% of the six-country market value is attributable to point-of-sale finance

In terms of volume, direct lending has been growing more quickly than point-of-sale finance

Across the six countries, the annual value of used car finance consistently exceeds that of new car finance

Competitor dynamics

The top 15 groups are likely to account for more than 80% of the Latin American market

Eight of these top 15 competitors are independent providers rather than captives…

… and these are led by Itaú Unibanco and Santander, followed by consortium operator Embracon

BBVA's absence from Brazil places a limit on its regional market share

3.0 ARGENTINA

Introduction

Passenger vehicle data

Annual sales of new cars were inconsistent between 2010 and 2014...

... with a similar trend observable for used cars

PSA, VW and Fiat Chrysler hold over half of the new passenger vehicle market between them

Consumer automotive finance and leasing market

Market size and growth

By volume, direct lending for used cars is the largest market...

... although point-of-sale finance for new cars is the largest by value

Types of finance and leasing product

Simple loans constitute by far the most common form of point-of-sale finance…

… although consortium loans and finance leasing are also used in some cases

Survey of automotive dealers and manufacturer brands

Dealer survey results

At least 11 providers of finance and leasing work directly with dealers...

… led by Santander Río, HSBC and BBVA Banco Frances...

...while non-bank partners include The Capita Corporation and Fiorasi Leasing

Manufacturer brand survey results

Ten manufacturer brands offer finance and leasing services through captive providers

GPAT Compañía Financiera is the largest provider by weighted share of brand partnerships...

... followed by Renault Nissan's NR Finance joint venture with BBVA Banco Frances

The same two firms also have the highest implied share of new business in a combined analysis…

… with the top five competitors likely to account for over half of the total market

4.0 BRAZIL

Introduction

Passenger vehicle data

Increasing sales of used cars have helped offset the fall in new car sales

Fiat Chrysler leads the light vehicle market in Brazil, ahead of VW and GM

Consumer automotive finance and leasing market

Market size and growth

Finance take-up rates at the point of sale for new cars have increased slightly in recent years…

... causing the total market value to rise at a compound annual rate of 3.1% between 2010 and 2014

Types of finance and leasing product

Simple loans are by far the most common form of point-of-sale finance…

… although consortium loans are also quite significant

Survey of automotive dealers and manufacturer brands

Dealer survey results

Five non-tied competitors account for three quarters of dealer partnerships...

...with around 20 more active in the market as a whole

Manufacturer brand survey results

More than half of manufacturer brands work with external partners for finance and leasing

Two of the top three providers are not captives…

… and external partnerships are common for financing through simple loans or consortiums

Banco Bradesco Financiamentos emerges as the probable overall market leader…

… followed by Santander Financiamentos, Banco Itaú and BV Financeira

5.0 CHILE

Introduction

Passenger vehicle data

Both new and used car sales in Chile have grown quite consistently in recent years...

... as has the overall car parc

Hyundai leads a relatively diverse car market in Chile...

... in which manufacturer groups outside of the top ten control over 20% of new car sales

Consumer automotive finance and leasing market

Market size and growth

Point-of-sale finance has tended to outgrow direct lending...

... whether measured in volume or value terms

Types of finance and leasing product

Simple loans constitute by far the most common form of car financing...

... although other options are available, including finance leasing

Survey of automotive dealers and manufacturer brands

Dealer survey results

Fórum Servicios Financieros and Santander Consumer Finance are leading non-tied providers...

... followed by Banco Falabella and Tanner Servicios Financieros

Manufacturer brand survey results

More than half of manufacturer brands work with external partners for finance and leasing

A non-captive provider accounts for almost a third of the weighted share of partnerships

A large number of providers offer financing independently and through a captive intermediary

Three finance providers are likely to control over a half of the market for point-of-sale finance

6.0 COLOMBIA

Introduction

Passenger vehicle data

Almost twice as many used cars as new cars were sold in Colombia in 2014…

… with the sales trend for both having fluctuated each year since 2010

GM and Renault Nissan are the dominant manufacturer groups by sales of light passenger vehicles

Consumer automotive finance and leasing market

Market size and growth

By volume, point-of-sale finance for new cars and direct finance for used cars are the largest segments...

... with the former accounting for the majority of the total market by value

Types of finance and leasing product

Point-of-sale contracts split between one dominant product and three secondary ones

Survey of automotive dealers and manufacturer brands

Dealer survey results

At least nine providers of finance and leasing work directly with dealers...

… led by Bancolombia, BBVA and Banco de Occidente

Finanzauto is the only specialist automotive finance company identified by dealers surveyed

Manufacturer brand survey results

Two thirds of manufacturer brands have an official provider of finance contracts…

… propelling them to a position of leadership in the combined analysis…

… with the top four competitors likely to account for over 80% of the total market

7.0 MEXICO

Introduction

Passenger vehicle data

Sales of new cars grew well in each year between 2010 and 2014...

... and have outpaced growth in used car sales over this period

VW, Renault Nissan and GM are the dominant manufacturer groups by new car registrations

Consumer automotive finance and leasing market

Market size and growth

By volume, point-of-sale finance for new cars and direct finance for used cars are the largest segments...

... with the former accounting for the vast majority of the total market by value

Types of finance and leasing product

The point-of-sale finance market in Mexico is dominated by simple loans...

... although ‘autofinanciamento' schemes are also quite popular

Survey of automotive dealers and manufacturer brands

Dealer survey results

At least nine providers of finance and leasing work directly with dealers...

… led by BBVA Bancomer, Banorte, BNP Paribas and Scotiabank

Autofin is the only non-bank institution competing in this sector

Manufacturer brand survey results

Most manufacturer brands offer finance and leasing services through captive providers...

…with Volkswagen Financial Services emerging as the single largest captive by weighted share

CF Credit Services is the largest external provider based on its on-going relationship with Fiat Chrysler

Acura and Honda are unusual in working with multiple external finance providers

Two captives are more or less equal as leaders by implied share of new business on a combined analysis…

… with the top six competitors likely to account for over 75% of the total market

8.0 PERU

Introduction

Passenger vehicle data

Sales of new cars have outpaced used car sales in recent years

Two groups dominate the Peruvian market by new car registrations

Consumer automotive finance and leasing market

Market size and growth

By volume, point-of-sale finance for new cars and direct finance for used cars are the largest segments...

... with the former accounting for the majority of the total market by value

Types of finance and leasing product

The point-of-sale finance market in Peru is dominated by simple loans

Survey of automotive dealers and manufacturer brands

Dealer survey results

At least nine providers of finance and leasing work directly with dealers...

… led by BCP, Santander and Scotiabank

Manufacturer brand survey results

Among manufacturer brands, Mitsui Auto Finance holds the highest weighted share of partnerships…

… followed by BBVA Continental

Hyundai's partner Amicar operates as a broker

Three providers are likely to control over a half of Peru's point-of-sale finance market

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

Composition of car dealers surveyed by country and by manufacturer group in Latin America, 2014

Composition of manufacturer brands surveyed in Latin America, 2014

2.0 REGIONAL OVERVIEW

Passenger car parc in Latin America by country, 2014

Passenger car parc in Latin America by country, 2010 to 2014 (table)

New passenger car sales to individual customers in Latin America by country, 2010 to 2014

New passenger car sales to individual customers in Latin America by country, 2010 to 2014 (table)

Used passenger car sales in Latin America by country, 2010 to 2014

Used passenger car sales in Latin America by country, 2010 to 2014 (table)

New passenger car registrations in Latin America, segmented by manufacturer group, 2014

New passenger car in Latin America, top 25 manufacturer groups, 2014 (table)

New passenger car sales for the top 11 manufacturing groups in Latin America by country, 2014 (table)

New passenger car sales for the top 11 manufacturing groups in Latin America by country, 2014 (table)

Percentage of dealers offering offering finance and leasing at the point of sale in Latin America by country, 2014

Average number of providers used by dealers offering finance and leasing at the point of sale in Latin America by country, 2014

Average number of providers used by dealers offering finance and leasing at the point of sale in Latin America by country, 2014 (table)

Product sources used by dealers offering finance and leasing at the point of sale in Latin America by country, 2014

Product sources used by dealers offering finance and leasing at the point of sale in Latin America by country, 2014 (table)

Average % of new and used car purchasers acquiring finance and leasing at the point of sale where offered in Latin America by country, 2014

% split between the different types of finance and leasing product sold at the point of sale in Latin America by country, 2014

% split between the different types of finance and leasing product sold at the point of sale in Latin America by country, 2014 (table)

Unweighted and weighted percentage of manufacturer brands with arrangements for branded finance and leasing in Latin America by country, 2014

Operating models used by manufacturer brands with arrangements for branded or endorsed finance and leasing, in Latin America by country, 2014

Operating models used by manufacturer brands with arrangements for branded or endorsed finance and leasing, in Latin America by country, 2014 (table)

Volume of new and used passenger cars financed in Latin America segmented by country, 2014

Volume of passenger cars financed in Latin America segmented by country and by distribution channel, 2014

Volume of passenger cars financed in Latin America segmented by country and by distribution channel, 2014 (table)

Value of new and used passenger cars financed in Latin America segmented by country, 2014

Value of passenger cars financed in Latin America segmented by country and by distribution channel, 2014

Value of passenger cars financed in Latin America segmented by country and by distribution channel, 2014 (table)

Total passenger car finance market Latin America segmented by distribution channel: volumes, 2010 to 2014

Total passenger car finance market in Latin America segmented by distribution channel: values, 2010 to 2014

Key data points for the passenger car finance market in Latin America segmented by distribution channel: volumes and values, 2010 to 2014

Top 15 competitors' share of partnerships in Latin America, weighted by % of dealer partnerships, by manufacturer brands' new car registrations, and by the value of finance and leasing markets, 2014

3.0 ARGENTINA

Passenger car parc and new / used passenger car sales in Argentina, 2010 to 2014

Passenger car parc and new / used passenger car sales in Argentina, 2010 to 2014 (table)

New car registrations in Argentina, segmented by manufacturer group, 2014

New and used passenger car finance market in Argentina, segmented by distribution channel: volumes, 2010 to 2014

New and used passenger car finance market in Argentina, segmented by distribution channel: values, 2010 to 2014

New and used passenger car finance market in Argentina, segmented by distribution channel: values and volumes, 2010 to 2014 (table)

% split between the different types of finance and leasing contract organised at the point of sale in Argentina, 2014

Provision of finance and leasing by dealers in Argentina, 2014: provision rate, product sources and provider share of non-tied partnerships

Provision of finance and leasing by manufacturer brands in Argentina, 2014: provision rate, operating models and weighted provider share of partnerships

Implied market shares of new business for finance and leasing at the point of sale in Argentina, 2014

4.0 BRAZIL

Passenger car parc and new / used passenger car sales in Brazil, 2010 to 2014

Passenger car parc and new / used passenger car sales in Brazil, 2010 to 2014 (table)

New light vehicle registrations in Brazil, segmented by manufacturer group, 2014

New and used passenger car finance market in Brazil, segmented by distribution channel: volumes, 2010 to 2014

New and used passenger car finance market in Brazil, segmented by distribution channel: values, 2010 to 2014

New and used passenger car finance market in Brazil, segmented by distribution channel: values and volumes, 2010 to 2014 (table)

% split between the different types of finance and leasing contract organised at the point of sale in Brazil, 2014

Provision of finance and leasing by dealers in Brazil, 2014: provision rate, product sources and provider share of non-tied partnerships

Provision of finance and leasing by manufacturer brands in Brazil, 2014: provision rate, operating models and weighted provider share of partnerships

Implied market shares of new business for finance and leasing at the point of sale in Brazil, 2014

5.0 CHILE

Passenger car parc and new / used passenger car sales in Chile, 2010 to 2014

Passenger car parc and new / used passenger car sales in Chile, 2010 to 2014 (table)

New car registrations in Chile, segmented by manufacturer group, 2014

New and used passenger car finance market in Chile, segmented by distribution channel: volumes, 2010 to 2014

New and used passenger car finance market in Chile, segmented by distribution channel: values, 2010 to 2014

New and used passenger car finance market in Chile, segmented by distribution channel: values and volumes, 2010 to 2014 (table)

% split between the different types of finance and leasing contract organised at the point of sale in Chile, 2014

Provision of finance and leasing by dealers in Chile, 2014: provision rate, product sources and provider share of non-tied partnerships

Provision of finance and leasing by manufacturer brands in Chile, 2014: provision rate, operating models and weighted provider share of partnerships

Implied market shares of new business for finance and leasing at the point of sale in Chile, 2014

6.0 COLOMBIA

Passenger car parc and new / used passenger car sales in Colombia, 2010 to 2014

Passenger car parc and new / used passenger car sales in Colombia, 2010 to 2014 (table)

New light passenger vehicle registrations in Colombia, segmented by manufacturer group, 2014

New and used passenger car finance market in Colombia, segmented by distribution channel: volumes, 2010 to 2014

New and used passenger car finance market in Colombia, segmented by distribution channel: values, 2010 to 2014

New and used passenger car finance market in Colombia, segmented by distribution channel: values and volumes, 2010 to 2014 (table)

% split between the different types of finance and leasing contract organised at the point of sale in Colombia, 2014

Provision of finance and leasing by dealers in Colombia, 2014: provision rate, product sources and provider share of non-tied partnerships

Provision of finance and leasing by manufacturer brands in Colombia, 2014: provision rate, operating models and weighted provider share of partnerships

Implied market shares of new business for finance and leasing at the point of sale in Colombia, 2014

7.0 MEXICO

Passenger car parc and new / used passenger car sales in Mexico, 2010 to 2014

Passenger car parc and new / used passenger car sales in Mexico, 2010 to 2014 (table)

New car registrations in Mexico, segmented by manufacturer group, 2014

New and used passenger car finance market in Mexico, segmented by distribution channel: volumes, 2010 to 2014

New and used passenger car finance market in Mexico, segmented by distribution channel: values, 2010 to 2014

New and used passenger car finance market in Mexico, segmented by distribution channel: values and volumes, 2010 to 2014 (table)

% split between the different types of finance and leasing contract organised at the point of sale in Mexico, 2014

Provision of finance and leasing by dealers in Mexico, 2014: provision rate, product sources and provider share of non-tied partnerships

Provision of finance and leasing by manufacturer brands in Mexico, 2014: provision rate, operating models and weighted provider share of partnerships

Implied market shares of new business for finance and leasing at the point of sale in Mexico, 2014

8.0 PERU

Passenger car parc and new / used passenger car sales in Peru, 2010 to 2014

Passenger car parc and new / used passenger car sales in Peru, 2010 to 2014 (table)

New car registrations in Peru, segmented by manufacturer group, 2013

New and used passenger car finance market in Peru, segmented by distribution channel: volumes, 2010 to 2014

New and used passenger car finance market in Peru, segmented by distribution channel: values, 2010 to 2014

New and used passenger car finance market in Peru, segmented by distribution channel: values and volumes, 2010 to 2014 (table)

% split between the different types of finance and leasing contract organised at the point of sale in Peru, 2014

Provision of finance and leasing by dealers in Peru, 2014: provision rate, product sources and provider share of non-tied partnerships

Provision of finance and leasing by manufacturer brands in Peru, 2014: provision rate, operating models and weighted provider share of partnerships

Implied market shares of new business for finance and leasing at the point of sale in Peru, 2014

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