1. Market Research
  2. > Financial Services
  3. > Insurance Market Trends
  4. > Consumer Automotive Financial Services in Brazil

Consumer Automotive Financial Services in Brazil

  • December 2014
  • -
  • Finaccord
  • -
  • 60 pages

Consumer Automotive Financial Services in Brazil investigates the market for automotive financial services linked to sales of new and used passenger cars to individual buyers in Brazil. In addition to analysing the market for finance and leasing services, the study also covers motor insurance, road assistance, extended warranties, creditor insurance, GAP insurance and prepaid service contracts. 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 Brazil is provided in terms of gross advances and assets leased for 2010 to 2014 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.

Table Of Contents

Consumer Automotive Financial Services in Brazil
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 Brazil 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 7
Tied and non-tied providers 8
Abbreviations 8
Currencies, exchange rates and inflation 8
PartnerBASE and market data annexe 8
Finaccord 9
2.0 MARKET ANALYSIS 11
Introduction 11
Passenger vehicle data 12
Increasing sales of used cars have helped offset the fall in new car sales 12
Fiat Chrysler leads the light vehicle market in Brazil, ahead of VW and GM 13
Consumer automotive finance and leasing market 15
Market size and growth 15
Finance take-up rates at the point of sale for new cars have increased slightly in recent years… 15
causing the total market value to rise at a compound annual rate of 3.1% between 2010 and 2014 16
Types of finance and leasing product 18
Simple loans are by far the most common form of point-of-sale finance… 18
… although consortium loans are also quite significant 18
Consumer automotive insurance, warranty and assistance markets 19
Market sizes 19
In total, the automotive trade is likely to have sold policies worth more than BRL 11 billion in 2014 19
Survey of automotive dealers and manufacturer brands - overview 22
Introduction 22
Provision of consumer automotive financial services 22
Brazilian dealerships overwhelmingly offer core insurance and financial products 22
although they have not taken up some of the products offered by manufacturers 22
Number and nature of dealer schemes 25
On average, car dealers in Brazil use more than six providers for finance and leasing 25
representing a significant increase in the number of non-tied partners since 2011 25
Types of creditor insurance policy sold by dealers 28
Creditor insurance sold with cars always covers one or both of temporary incapacity and unemployment 28
Types of motor insurance policy sold by dealers 29
Almost all dealers sell all types of motor insurance 29
Sources of road assistance distributed by dealers 30
Road assistance is always packaged with motor insurance and can also be acquired with other products 30
Consumer uptake of automotive financial services through dealers 31
Take-up rates for point-of-sale finance in Brazil have risen slightly among buyers of new cars… 31
as have take-up rates for motor insurance proposed by dealers… 31
and extended warranties for used cars (but not for new ones) 31
Survey of automotive dealers and manufacturer brands - partnerships 33
Introduction 33
Finance and leasing 34
Five non-tied competitors account for three quarters of dealer partnerships 34
with around 20 more active in the market as a whole 34
More than half of manufacturer brands work with external partners for finance and leasing 36
Two of the top three providers are not captives… 36
… and external partnerships are common for financing through simple loans or consortiums 36
Banco Bradesco Financiamentos emerges as the probable overall market leader… 38
… followed by Santander Financiamentos, Banco Itaú and BV Financeira 38
Creditor insurance 40
Point-of-sale creditor insurance in Brazil is almost always sourced from finance providers 40
Cardif do Brasil Vida e Previdência is the dominant provider among manufacturer brands 41
Motor insurance 43
Very few dealers limit themselves to insurance schemes tied to manufacturers… 43
…and Brazil's major underwriters claim the largest share of partnerships in a very diverse market… 43
… led by Porto Seguro, Azul Seguros and SulAmerica Seguros 43
Over half of manufacturer brands' motor insurance partnerships are with external underwriters 45
with two of these providers holding over half of the weighted share of partnerships 45
MAPFRE, Indiana Seguros and Porto Seguro are likely point-of-sale motor insurance market leaders 47
Extended warranties 48
There is plenty of scope to increase extended warranty provision via dealers… 48
and several companies are attempting to do so including JMandA Brazil and The Warranty Group 48
Assurant and Indiana Seguros are the leading providers through manufacturers 50
A combined analysis suggests that two point-of-sale extended warranty providers control half the market 52
Road assistance 53
Non-tied assistance providers are used to support the sale of used cars 53
and four main competitors vie for manufacturer brand mandates for road assistance… 54
… including local company Tempo Assist 54
GAP insurance 56
A form of GAP is integral to Brazilian motor insurance, but separate GAP policies have also emerged… 56
with two insurers offering these 56
Prepaid service contracts 58
Few Brazilian dealers yet offer prepaid service contracts… 58
… and just one manufacturer brand 60

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY 1
Key market data for consumer automotive financial services in Brazil, 2014 2
1.0 INTRODUCTION 3
2.0 MARKET ANALYSIS 11
Passenger car parc and new / used passenger car sales in Brazil, 2010 to 2014 12
Passenger car parc and new / used passenger car sales in Brazil, 2010 to 2014 (table) 13
New light vehicle registrations in Brazil, segmented by manufacturer group, 2014 14
New and used passenger car finance market in Brazil, segmented by distribution channel: volumes, 2010
to 2014 15
New and used passenger car finance market in Brazil, segmented by distribution channel: values, 2010 to
2014 16
New and used passenger car finance market in Brazil, segmented by distribution channel: values and
volumes, 2010 to 2014 (table) 17
% split between the different types of finance and leasing contract organised at the point of sale in Brazil,
2014 18
Total revenues from consumer automotive insurance, warranty, assistance and service contract markets
in Brazil, 2014 20
Total revenues from consumer automotive insurance, warranty, assistance and service contract markets
in Brazil, 2014 (table) 21
Comparison of the provision of each type of automotive financial service by dealers and manufacturer
brands in Brazil, 2014 24
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial
service in Brazil, 2014 26
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial
service in Brazil, 2014 (data) 27
% split between the different types of creditor insurance policy sold at the point of sale in Brazil, 2014 28
% split between the different types of motor insurance policy sold at the point of sale in Brazil, 2014 29
% availability of road assistance through factory warranties, annual services, extended warranties, motor
insurance, prepaid service contracts and as a stand-alone product in Brazil, 2014 30
% of new and used car purchasers acquiring each type of automotive financial service at the point of sale
in Brazil, 2014 32
Provision of finance and leasing by dealers in Brazil, 2014: provision rate, product sources and provider
share of non-tied partnerships 35
Provision of finance and leasing by manufacturer brands in Brazil, 2014: provision rate, operating models
and weighted provider share of partnerships 37
Implied market shares of new business for finance and leasing at the point of sale in Brazil, 2014 39
Provision of creditor insurance by dealers in Brazil, 2014: provision rate and product sources 40
Provision of creditor insurance by manufacturer brands in Brazil, 2014: provision rate, operating models
and weighted provider share of partnerships 42
Provision of motor insurance by dealers in Brazil, 2014: provision rate, product sources and provider
share of non-tied partnerships 44
Provision of motor insurance by manufacturer brands in Brazil, 2014: provision rate, operating models and
weighted provider share of partnerships 46
Implied market shares of new business for manufacturer-branded and dealer-intermediated motor
insurance in Brazil, 2014 47
Provision of extended warranties by dealers in Brazil, 2014: provision rate, product sources and provider
share of non-tied partnerships 49
Provision of extended warranties by manufacturer brands in Brazil, 2014: provision rate, operating models
and weighted provider share of partnerships 51
Implied market shares of new business for extended warranties in Brazil, 2014 52
Provision of road assistance by dealers in Brazil, 2014: provision rate and product sources 53
Provision of road assistance by manufacturer brands in Brazil, 2014: provision rate, operating models and
weighted provider share of partnerships 55
Provision of GAP insurance by manufacturer brands in Brazil, 2014: provision rate, operating models and
weighted provider share of partnerships 57
Provision of prepaid service contracts by dealers in Brazil, 2014: provision rate, product sources and
provider share of non-tied partnerships 59
Provision of prepaid service contracts by manufacturer brands in Brazil, 2014: provision rate and
operating models 60

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 Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

Fraud Detection and Prevention Market by Solution, Application Areas, Service, End-User, Vertical - Global Forecast to 2021

  • $ 7150
  • Industry report
  • September 2016
  • by MarketsandMarkets

“Rapid increase in mobile banking will drive the FDP market” The Fraud Detection and Prevention (FDP) market size is estimated to grow from USD 14.36 billion in 2016 to USD 33.19 billion by 2021, at ...

Business Process Management Market Analysis By Solution, By Application, By Deployment, By End-User And Segment Forecasts To 2024

Business Process Management Market Analysis By Solution, By Application, By Deployment, By End-User And Segment Forecasts To 2024

  • $ 4950
  • Industry report
  • August 2016
  • by Grand View Research

The global business process management (BPM) market is expected to reach USD 23.04 billion by 2024, according to a new study by Grand View Research, Inc. The growth is attributed to the increasing numbe ...

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

Customer Experience Management Study—Malaysia’s Life Insurance Market, 2015

  • $ 4950
  • Industry report
  • September 2016
  • by Frost & Sullivan

Benchmarking the Industry Excellence in Delivering Superior Customer Experience Customer experience is the accumulation of customers’ experiences throughout their journey with the supplier, across any ...


ref:plp2014

Reportlinker.com © Copyright 2016. All rights reserved.

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