Marktanalyse - Consumer Automotive Financial Services in Argentina

Marktanalyse - 'Consumer Automotive Financial Services in Argentina'

Consumer Automotive Financial Services in Argentina investigates the market for automotive financial services linked to sales of new and used passenger cars in Argentina. In addition to analysing the market for finance and leasing services, the study also covers creditor insurance, motor insurance and road assistance, and demonstrates the extent to which a market exists for extended warranties and GAP 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 Argentina is provided in terms of gross advances and assets leased for 2007 to 2011 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 and GAP insurance are sized in terms of gross written premiums and other revenues sold through the automotive trade (i.e. via dealers and manufacturers) in 2011. These are broken down between new and used cars and between new contracts sold during 2011 and in-force business sold in previous years but still being renewed in 2011. The report draws on a survey of 75 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of over 20 automotive brands in Argentina. The PartnerBASE™ database that accompanies the report details each of the marketing initiatives for consumer automotive financial services traced by Finaccord for both dealers and manufacturers. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in Argentina.

Inhaltsverzeichnis Marktanalyse 'Consumer Automotive Financial Services in Argentina'



TABLE OF CONTENTS

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

… with huge diversity in these services between countries and products…... 3

… which have yet to be explored in detail . 3

Methodology 4

Survey of dealers and manufacturers ... 4

Market data ... 2

Computation of market data is based on a complex set of assumptions and variables… . 2

…in order to provide market segmentations in unrivalled detail .. 2

Definitions .... 2

Finance and leasing products 2

Insurance, warranty and assistance products 3

Captive, internal and tied providers . 3

Abbreviations 4

PartnerBASE™ 4

Finaccord 4

2.0 MARKET ANALYSIS .. 6

Introduction .. 6

Passenger vehicle data .. 7

New car sales showed strong, fresh gains after a brief period of decline... .... 7

...while both dealer-intermediated and private used car sales maintained steady growth as well .... 7

European manufacturers make up most of the top ten brands in Argentina… .... 9

…with Volkswagen continuing to lead the passenger car market .... 9

Consumer automotive finance and leasing market ... 11

Market size and growth .. 11

Sales involving finance just edge out cash-only sales... .. 11

...as the finance market made strong gains in a decade of growth 11

Types of finance and leasing product . 14

Simple unsecured loans form the largest share of financing… . 14

…while communal ‘savings plans’ remain a popular form of lending .. 14

Consumer automotive insurance, warranty and assistance markets .... 15

Market sizes 15

Motor insurance makes up the overwhelming majority of the market... ... 15

Types of creditor insurance policy . 18

Simple credit life insurance is an automatic feature of finance in Argentina.. 18

Types of motor insurance policy .... 18

Third party liability dominates the motor insurance market by a four to one margin .... 18

Automotive dealer survey .. 19

Provision of consumer automotive financial services . 19

Finance and motor insurance are universal offerings among dealers . 19

Number and nature of schemes .... 20

Manufacturer-tied financing remains the most popular source for dealers ... 20

Consumer uptake of automotive financial services .... 22

Take-up rates indicate a reluctance to invest in additional products for used vehicles 22

Competitor dynamics: dealer partnerships ... 24

Finance and leasing: point-of-sale financing for new cars is taken up by less than half of customers. 24

Creditor insurance: obligatory cover boosts take-up rates to 100% .... 26

Motor insurance: take-up rates correlate to financing rates .. 26

Extended warranties: these are unavailable for used cars, and are seldom purchased for new ones 28

Road assistance: a high take up rate is linked to automatic inclusion with new vehicle purchases 29

Automotive manufacturer brand survey . 31

Provision of consumer automotive financial services . 31

All manufacturers surveyed offer financing, creditor insurance and motor insurance . 31

Competitor dynamics: manufacturer brand partnerships 33

Finance and leasing: nearly 40% of the manufacturers surveyed use captive finance providers… .... 33

…with the top three finance firms sharing half the total market . 33

Creditor insurance: Cardif Seguros dominates this market .. 35

Motor insurance: La Caja and Meridional lead a fairly tight field 37

Extended warranties: these are the exclusive domain of the manufacturer brands (or their importers) ... 39

Road assistance: this is similarly available solely through manufacturers’ own provision 40







Tabellenverzeichnis Marktanalyse 'Consumer Automotive Financial Services in Argentina'



LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY .. 1

Key market data for consumer automotive financial services in Argentina, 2011 .. 2

1.0 INTRODUCTION 3

Dealers contacted by Finaccord, segmented by manufacturer group affiliation 4

2.0 MARKET ANALYSIS .. 6

Passenger car parc and new / used passenger car sales in Argentina, 2007 to 2011 .... 8

Passenger car parc and new / used passenger car sales in Argentina, 2007 to 2011 (data) ... 8

New car registrations in Argentina, segmented by manufacturer brand, 2010 .... 10

New / used passenger car finance market in Argentina, segmented by distribution channel: volumes, 2007 to 2011 ... 11

New / used passenger car finance market in Argentina, segmented by distribution channel: values, 2007 to 2011 .. 12

New / used passenger car finance market in Argentina, segmented by distribution channel: values and volumes, 2007 to 2011 (data) .. 13

% split between the different types of finance and leasing contract sold at the point of sale in Argentina, 2011 . 15

Total revenues from consumer automotive insurance, warranty and assistance markets in Argentina, 2011 . 16

Total revenues from consumer automotive insurance, warranty and assistance contracts in Argentina, 2011 (data) 17

% split between the different types of motor insurance policy sold at the point of sale in Argentina, 2011 .... 18

% of dealers in Argentina offering each type of automotive financial service, 2011 . 19

Average number of tied and non-tied schemes offered by dealers in Argentina for each type of automotive financial service, 2011 ... 21

Average number of tied and non-tied schemes offered by dealers in Argentina for each type of automotive financial service, 2011 (data) ... 21

% of new and used car purchasers in Argentina acquiring each type of automotive financial service at the point of sale, 2011 .... 23

Provision of finance and leasing by dealers in Argentina, 2011: provision rate, product sources and provider share of non-tied partnerships . 25

Provision of motor insurance by dealers in Argentina, 2011: provision rate, product sources and provider share of non-tied partnerships . 27

Provision of extended warranties by dealers in Argentina, 2011: provision rate and product sources .. 28

Provision of road assistance by dealers in Argentina, 2011: provision rate, product sources and provider share of non-tied partnerships . 30

Comparison of the provision of each type of automotive financial service by manufacturer brands and dealers in Argentina, 2011 .. 32

Provision of finance and leasing by manufacturer brands in Argentina, 2011: provision rate, operating models and weighted provider share of partnerships .... 34

Provision of creditor insurance by manufacturer brands in Argentina, 2011: provision rate, operating models and weighted provider share of partnerships .... 36

Provision of motor insurance by manufacturer brands in Argentina, 2011: provision rate, operating models and weighted provider share of partnerships .. 38

Provision of extended warranties by manufacturer brands in Argentina, 2011: provision rate and operating models .. 39

Provision of road assistance by manufacturer brands in Argentina, 2011: provision rate and operating models .. 40

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