Consumer Automotive Financial Services in the UK

NEW YORK, Aug. 13, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Consumer Automotive Financial Services in the UK
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Consumer Automotive Financial Services in the UK investigates the market for automotive financial services linked to sales of new and used passenger cars to individual buyers in the UK. In addition to analysing the market for finance and leasing services, the study also covers creditor insurance, motor insurance, road assistance, extended warranties, prepaid service contracts, GAP insurance, minor damage insurance, MOT protection and tyre insurance.

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 the UK is provided in terms of gross advances and assets leased for 2008 to 2012 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.

Moreover, also by means of data for average take-up rates, the markets for creditor insurance, motor insurance, road assistance, extended warranties, prepaid service contracts, GAP insurance, minor damage insurance and tyre insurance are sized in terms of gross written premiums and other revenues sold through the automotive trade (i.e. via dealers and manufacturers) in 2012. These markets, estimated to be worth GBP 1.51 billion in total in 2012 (about EUR 1.79 billion), are broken down between new and used cars, and between new contracts sold during 2012 and in-force business sold in previous years but still being renewed in 2012.

The report draws on a survey of 80 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of 47 car manufacturer brands in the UK. The PartnerBASE™ dataset that accompanies the report details each of the marketing initiatives for consumer automotive financial services traced by Finaccord for both dealers and manufacturers; a market data annexe is also available in a convenient spreadsheet format so that there is no need to re-enter key data points from the report.

In addition to captive finance companies owned by manufacturer brands, organisations covered by the report include the AA, Allianz Global Assistance, Barclays Partner Finance, Car Care Plan, Close Motor Finance, EMaC, MAPFRE ABRAXAS, Original Insurance Services, QBE, RAC, Santander Consumer Finance and The Warranty Group. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in the UK.

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 Turkey based on primary research 3
Methodology 3
Survey of dealers and manufacturers 3
Market data 4
Computation of market data is based on a complex set of assumptions and variables… 4
…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 8
Tied and non-tied providers 8
Abbreviations 8
Exchange rate 8
PartnerBASE and market data annexe 9
Finaccord 9
2.0 MARKET ANALYSIS 11
Introduction 11
Passenger vehicle data 12
Sales of both new and used cars have grown rapidly in recent years 12
... albeit both peaked in 2011 before falling back slightly the following year 12
Three manufacturer groups account for over a half of new car sales 14
Consumer automotive finance and leasing market 14
Market size and growth 14
Rising take-up rates for credit in one form or another saw the volume of cars financed hit a peak in 2012 14
... with the market value having risen at a nominal compound annual rate of 18.3% since 2008 16
Types of finance and leasing product 18
The vast majority of consumer automotive finance in Turkey is skewed to one type of finance product 18
Consumer automotive insurance, warranty and assistance markets 19
Market sizes 19
In total, the automotive trade is likely to have sold contracts worth around TRY 706.9 million in 2012 19
Survey of automotive dealers and manufacturer brands - overview 22
Introduction 22
Provision of consumer automotive financial services 23
Dealers and manufacturer brands in Turkey have increased the services offered since the last survey 23
Number and nature of dealer schemes 25
Turkish dealers commonly work with multiple partners for both finance and leasing 25
... and motor insurance 25

Types of creditor insurance policy sold by dealers 28
It is usual for comprehensive creditor insurance policies to be made available with automotive finance 28
Types of motor insurance policy sold by dealers 29
All motor insurance policies sold through dealers include both liability and other types of cover 29
Sources of road assistance distributed by dealers 30
Road assistance is sometimes bundled with extended warranties 30
Consumer uptake of automotive financial services through dealers 31
Take-up rates for point-of-sale finance in Turkey have changed little since 2010 31
... and those for motor insurance remain much higher than those for extended warranties 31
Survey of automotive dealers and manufacturer brands - partnerships 33
Introduction 33
Finance and leasing 34
There are at least 12 non-tied providers active in the Turkish market 34
... among which nine are likely to hold a reasonably high market share 34
Most manufacturer brands have an arrangement for the provision of finance and leasing services 36
... in a sector that includes two joint venture finance providers and one captive finance broker 36
Across all types of provider, the leading firm has an implied market share of new business of 13.1% 38
Creditor insurance 39
Three underwriters of creditor insurance maintain links with captive finance providers 39
Motor insurance 41

Aksigorta, AXA and Allianz are the leading non-tied providers of motor insurance 41
AXA is also used as sole preferred provider of motor insurance by as many as seven brands 43
... placing it ahead of Otokoç Sigorta Aracilik Hizmetleri and VDF Sigorta by weighted share 43
Extended warranties 45
Extended warranty provision is dominated by tied manufacturer or importer schemes 45
Over two thirds of manufacturer brands researched have introduced extended warranty programs 47
A combined analysis assigns an implied 24.1% market share to the leading competitor 49
Road assistance 50
Where made available on a non-tied basis, road assistance can be sold in two embedded formats 50
Turassist is the dominant provider of road assistance to manufacturer brands 51
GAP insurance 53
While previously absent from the market, a minority of dealers have now introduced GAP insurance 53
... as a consequence of a branded product launched by one major automotive group 54
Prepaid service contracts 55
Prepaid service contracts remain at a very early stage of development in Turkey 55
... with the concept having been launched by just one importer group 56

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY 1
Key market data for consumer automotive financial services in Turkey, 2012 2
1.0 INTRODUCTION 3
2.0 MARKET ANALYSIS 11
Passenger car parc and new / used passenger car sales in Turkey, 2008 to 2012 13
Passenger car parc and new / used passenger car sales in Turkey, 2008 to 2012 (data) 13
New car registrations in Turkey, segmented by manufacturer group, 2012 14
New and used passenger car finance market in Turkey, segmented by distribution channel: volumes, 2008 to 2012 15
New and used passenger car finance market in Turkey, segmented by distribution channel: values, 2008 to 2012 16
New and used passenger car finance market in Turkey, segmented by distribution channel: values and volumes, 2008 to 2012 (data) 17
% split between the different types of finance and leasing contract organised at the point of sale in Turkey, 2012 18
Total revenues from consumer automotive insurance, warranty, assistance and service contract markets in Turkey, 2012 20
Total revenues from consumer automotive insurance, warranty assistance and service contracts in Turkey, 2012 (data) 21
Comparison of the provision of each type of automotive financial service by dealers and manufacturer brands in Turkey, 2013 24
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Turkey, 2013 26
Average number of tied and non-tied schemes organised by dealers for each type of automotive financial service in Turkey, 2013 (data) 27
% split between the different types of creditor insurance policy sold at the point of sale in Turkey, 2013 .. 28
% split between the different types of motor insurance policy sold at the point of sale in Turkey, 2013 . 29
% availability of road assistance through factory warranties, extended warranties, motor insurance, prepaid service contracts and as a stand-alone product in Turkey, 2013 30
% of new and used car purchasers acquiring each type of automotive financial service at the point of sale in Turkey, 2013 32
Provision of finance and leasing by dealers in Turkey, 2013: provision rate, product sources and provider share of non-tied partnerships 35
Provision of finance and leasing by manufacturer brands in Turkey, 2013: provision rate, operating models and weighted provider share of partnerships 37
Implied market shares of new business for finance and leasing in Turkey, 2013 38
Provision of creditor insurance by manufacturer brands in Turkey, 2013: provision rate, operating models and weighted provider share of partnerships 40
Provision of motor insurance by dealers in Turkey, 2013: provision rate, product sources and provider share of non-tied partnerships 42

Provision of motor insurance by manufacturer brands in Turkey, 2013: provision rate, operating models and weighted provider share of partnerships 44
Provision of extended warranties by dealers in Turkey, 2013: provision rate, product sources and provider share of non-tied partnerships 46
Provision of extended warranties by manufacturer brands in Turkey, 2013: provision rate, operating models and weighted provider share of partnerships 48
Implied market shares of new business for extended warranties in Turkey, 2013 49
Provision of road assistance by dealers in Turkey, 2013: provision rate and product sources 50
Provision of road assistance by manufacturer brands in Turkey, 2013: provision rate, operating models and weighted provider share of partnerships 52
Provision of GAP insurance by dealers in Turkey, 2013: provision rate and product sources 53
Provision of GAP insurance by manufacturer brands in Turkey, 2013: provision rate and operating models 54
Provision of prepaid service contracts by dealers in Turkey, 2013: provision rate and product sources 55
Provision of prepaid service contracts by manufacturer brands in Turkey, 2013: provision rate and operating models 56

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Passenger_Car Industry: Consumer Automotive Financial Services in the UK

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