Auto Lending Industry Overview

Companies that provide auto loans to consumers and businesses.

Summary

When it comes to a new car purchase, the minds of many Americans are probably preoccupied with gas mileage. But how you choose to finance your new car might save as much as or more money than avoiding a gas guzzler.Most cars sold in the US are financed by the vehicle's dealer -- usually this means the vehicle finance arm of a major car company like General Motors Acceptance Corporation  (GMAC), Ford Motor Credit, Toyota Motor Credit, or Daimler Financial Services (formerly DaimlerChrysler Financial Services).

Full Auto Lending Industry Description

Industry Consolidation

Consolidation

In the past 10 years, the number of commercial banks in the US dropped by almost 30 percent. Large economies of scale in banking operations have encouraged consolidation, which has produced several dozen very large banks with more than $50 billion in assets. Smaller banks are still able to thrive by providing personal attention smaller customers don't get from large institutions.

Several factors have encouraged consolidation in recent years: larger companies have easier and cheaper access to capital markets, computer systems can now handle credit analysis and loan tracking functions for large portfolios of loans, and the industry's strong profitability has prompted many companies to expand by buying smaller firms that already have offices, personnel, and a local presence.

Full Auto Lending Industry Trends

• American Honda Finance Corporation
• Automotive Finance Corporation
• Capital One Auto Finance, Inc.

View more Auto Lending Competitors

Hoover's has developed its own industry classifications to better serve its customers. These classifications are mapped to the North American Industry Classification System (NAICS) and the older U.S. Standard Industrial Classification (SIC) system. The Auto Lending maps to a number of NAICS codes including:

Full Auto Lending Industry Codes

• Financial Services Technology Consortium
  
• Investment Company Institute
  
• The Association of Private Client Investment Managers and Stockbrokers
  

View more Auto Lending Industry Associations