Europe Automotive Finance Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Europe Automotive Finance Market report segments the industry into By Type (New Vehicles, Used Vehicles), By Source Type (Original Equipment Manufacturers (OEMs), Banks, Credit Institutions, Non-banking Financial Institutions), By Vehicle Type (Passenger Cars, Commercial Vehicles), and By Country (Germany, United Kingdom, Italy, France, Spain, Netherlands, Belgium, Rest of Europe).

Europe Automotive Finance Market Size

Europe Automotive Finance Market Summary

Europe Automotive Finance Market Analysis

The Europe Automotive Finance Market size is estimated at USD 33.24 billion in 2025, and is expected to reach USD 46.03 billion by 2030, at a CAGR of 6.73% during the forecast period (2025-2030).

Over the long term, as European consumers increasingly opt for private transportation, buoyed by rising disposable incomes and enticed by financial institutions' attractive programs like car buybacks and OEM warranties, the automotive finance market in Europe is poised for significant growth.

• According to the International Organization of Motor Vehicle Manufacturers (OICA), new passenger car sales in Europe touched 14.9 million units in 2023 compared to 12.63 million units in 2022, representing a Y-o-Y growth of 16.4% between 2022 and 2023.

Moreover, the burgeoning used car market and a growing preference for customizable loan options are stoking the demand for automotive financing in Europe. Instead of upfront payments, consumers are increasingly turning to equated monthly installments for their used vehicle purchases. Additionally, as governments push for transportation decarbonization and consumers lean toward eco-friendly transportation methods, the stage is set for a surge in European electric vehicle financing opportunities.

Key market players have bolstered their brand presence by offering competitive interest rates and forging lasting partnerships with automakers. Notably, companies like Geely are teaming up with banks, which integrates them into the vehicle financing industry and boosts their overall business profitability. The market is primed for growth, fueled by the rising prices of new vehicles, prompting consumers to seek out flexible financing options across Europe.

Europe Automotive Finance Industry Overview

The European automotive financing market, characterized by fragmentation and intense competition, sees participation from banks, original equipment manufacturers (OEMs), and non-banking financial entities. Notable contenders in this arena encompass Capital One Financial Corporation, BNP Paribas SA, Mercedes-Benz Group AG, Ford Motor Company, Societe Generale Group, HDFC Bank Limited, Standard Chartered PLC, and Banco Santander SA. These entities provide tailored auto financing solutions and strive to bolster their brand recognition by venturing into untapped markets.

• October 2023: Zeekr, a Geely-operated brand, announced its partnership with BNP Paribas and Arval to expand its European operations by offering customers financial and insurance services to purchase new vehicles. The company further stated its aim to launch its services in the three European countries of Sweden, the Netherlands, and Germany by 2024.

• October 2023: Lucid announced its strategic partnership with CA Auto Bank to launch the Lucid Financial Services arm in Europe. The arm will provide affordable leasing and financing solutions to customers willing to purchase Lucid Air Electric cars. The company is aiming to integrate itself into the German market by offering a digital platform to consumers that can assist them in the end-to-end auto loan process via the online medium.

Owing to the lucrative opportunity presented by the industry, the market is anticipated to witness the integration of various non-banking financial institutions over the coming years.

Europe Automotive Finance Market Leaders

  1. Capital One Financial Corporation

  2. BNP Paribas SA

  3. Mercedes-Benz Group AG

  4. Ford Motor Company

  5. Societe Generale Group

  6. *Disclaimer: Major Players sorted in no particular order
Europe Automotive Finance Market Concentration
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Europe Automotive Finance Market News

  • March 2024: BMW's financial arm partnered with CRIF to introduce open banking services in the United Kingdom, targeting prospective car buyers. The collaboration aims to streamline auto financing across all UK retailers, enhancing BMW's financial arm's access to crucial creditworthiness data.
  • February 2024: Banking and Payments Federation Ireland (BPFI) highlighted a significant upsurge in car loan values during Q3 2023. This surge was primarily attributed to Irish consumers' growing preference for electric vehicles. Notably, the number of car loans in Q3 2023 reached 14,994, marking a 25.5% increase over the same period in 2022. Consequently, the total value of these loans hit Euro 189 million (USD 204 million).
  • January 2024: Bumper, a fintech platform specializing in flexible payment solutions for car repairs, secured USD 48 million in its Series B funding round, spearheaded by Autotech Ventures. Bumper's unique offering provides drivers with interest-free payment options, easing the financial burden of sudden repair expenses.

Europe Automotive Finance Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

  • 4.1 Market Drivers
    • 4.1.1 Increasing Adoption of Electric Vehicles Fosters the Growth of the Market
  • 4.2 Market Restraints
    • 4.2.1 Fluctuating Interest Rate Hampers the Growth of the Market
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Threat of New Entrants
    • 4.3.2 Bargaining Power of Buyers/Consumers
    • 4.3.3 Bargaining Power of Suppliers
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION (Market Size in Value - USD)

  • 5.1 By Type
    • 5.1.1 New Vehicles
    • 5.1.2 Used Vehicles
  • 5.2 By Source Type
    • 5.2.1 Original Equipment Manufacturers (OEMs)
    • 5.2.2 Banks
    • 5.2.3 Credit Institutions
    • 5.2.4 Non-banking Financial Institutions
  • 5.3 By Vehicle Type
    • 5.3.1 Passenger Cars
    • 5.3.2 Commercial Vehicles
  • 5.4 By Country
    • 5.4.1 Germany
    • 5.4.2 United Kingdom
    • 5.4.3 Italy
    • 5.4.4 France
    • 5.4.5 Spain
    • 5.4.6 Netherlands
    • 5.4.7 Belgium
    • 5.4.8 Rest of Europe

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles*
    • 6.2.1 Mitsubishi UFJ Lease & Finance Co. Ltd
    • 6.2.2 HSBC Holdings PLC
    • 6.2.3 HDFC Bank Limited
    • 6.2.4 Capital One Financial Corporation
    • 6.2.5 Wells Fargo & Co.
    • 6.2.6 Toyota Financial Services (Toyota Motor Corporation)
    • 6.2.7 BNP Paribas SA
    • 6.2.8 Volkswagen AG
    • 6.2.9 Mercedes-Benz Group AG
    • 6.2.10 Standard Chartered PLC
    • 6.2.11 BMW AG (Alphera Financial Services)
    • 6.2.12 Ford Motor Company
    • 6.2.13 Banco Santander SA
    • 6.2.14 Societe Generale Group

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  • 7.1 Rising Passenger Car and Commercial Vehicle Prices to Fuel Market Demand
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Europe Automotive Finance Industry Segmentation

Automotive financing, commonly referred to as car finance, encompasses a range of financial products that facilitate the purchase of vehicles, whether new or used, through methods other than a one-time, full-cash payment.

The European automotive financing market is segmented by type, source type, vehicle type, and country. By type, the market is segmented into new vehicles and used vehicles. By source type, the market is segmented into original equipment manufacturers (OEMs), banks, credit institutions, and non-banking financial institutions. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By country, the market is segmented into Germany, the United Kingdom, Italy, France, Spain, Netherlands, Belgium, and the Rest of Europe.

The report offers market size and forecasts for automotive financing in value (USD) for all the above segments.

By Type New Vehicles
Used Vehicles
By Source Type Original Equipment Manufacturers (OEMs)
Banks
Credit Institutions
Non-banking Financial Institutions
By Vehicle Type Passenger Cars
Commercial Vehicles
By Country Germany
United Kingdom
Italy
France
Spain
Netherlands
Belgium
Rest of Europe
By Type
New Vehicles
Used Vehicles
By Source Type
Original Equipment Manufacturers (OEMs)
Banks
Credit Institutions
Non-banking Financial Institutions
By Vehicle Type
Passenger Cars
Commercial Vehicles
By Country
Germany
United Kingdom
Italy
France
Spain
Netherlands
Belgium
Rest of Europe
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Europe Automotive Finance Market Research FAQs

How big is the Europe Automotive Finance Market?

The Europe Automotive Finance Market size is expected to reach USD 33.24 billion in 2025 and grow at a CAGR of 6.73% to reach USD 46.03 billion by 2030.

What is the current Europe Automotive Finance Market size?

In 2025, the Europe Automotive Finance Market size is expected to reach USD 33.24 billion.

Who are the key players in Europe Automotive Finance Market?

Capital One Financial Corporation, BNP Paribas SA, Mercedes-Benz Group AG, Ford Motor Company and Societe Generale Group are the major companies operating in the Europe Automotive Finance Market.

What years does this Europe Automotive Finance Market cover, and what was the market size in 2024?

In 2024, the Europe Automotive Finance Market size was estimated at USD 31.00 billion. The report covers the Europe Automotive Finance Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe Automotive Finance Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Europe Automotive Finance Industry Report

Statistics for the 2025 Europe Automotive Finance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Automotive Finance analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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