Companies in this industry provide sales financing for automotive purchases and leases. Major companies include Ally Financial, Ford Motor Credit, JPMorgan Chase, and Wells Fargo (all based in the US), as well as Banco Santander (Spain), Daimler Financial Services (Germany), and Toyota Financial Services (Japan).
Demand is driven by interest rates, consumer confidence, and capital spending by businesses. The profitability of individual companies depends on their ability to originate, service, and collect loans and leases, as well as to collect fees and interest on financing products. Large companies have economies of scale in securing access to capital. Small companies can compete effectively by specializing. The US industry is highly concentrated: the top 50 companies account for more than 85% of revenue.
Products, Operations & Technology
Major products are loans and leases, each of which accounts for about half of US auto lending revenue.