Marktanalyse - Consumer Automotive Financial Services in Mexico

Marktanalyse - 'Consumer Automotive Financial Services in Mexico'

Consumer Automotive Financial Services in Mexico investigates the market for automotive financial services linked to sales of new and used passenger cars in Mexico. 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 Mexico 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 80 leading car dealerships as well as an analysis of the approach to consumer automotive financial services of over 30 automotive brands in Mexico. 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 Mexico.

Inhaltsverzeichnis Marktanalyse 'Consumer Automotive Financial Services in Mexico'



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 show a steep decline from which they have not yet recovered... . 7

.. while used car sales through dealers are only just showing signs of life after a calamitous decade… ... 7

…as legal and illegal ‘chocolate’ cars imported from the US continue to have a dramatic effect on sales . 7

Nissan continues to hold the top position among individual brands… .. 9

…while US-based manufacturers continue to struggle . 9

Market shares overall remain fairly steady against declining sales .. 9

Consumer automotive finance and leasing market ... 11

Market size and growth .. 11

Some type of financing is found in one third of private automotive sales... ... 11

…while all types of financing have shown modest growth or slow decline since 2007 .... 11

Point-of-sale finance, especially for new vehicles, remains the core of the market… . 13

…while direct lenders are especially important for used cars .... 13

Types of finance and leasing product . 15

The vast majority of finance involves simple loans… .. 15

…with only limited markets for finance or operating leases .. 15

Consumer automotive insurance, warranty and assistance markets .... 16

Market sizes 16

Motor insurance accounts for the lion’s share of the combined market value... 16

...with other forms of insurance and assistance combining to form only 15% of the market . 17

Types of creditor insurance policy . 19

Almost all creditor insurance includes cover for unemployment, disability or both . 19

Types of motor insurance policy .... 21

A lack of federal requirements for insurance means limited coverage for the national parc . 21

Automotive dealer survey .. 22

Provision of consumer automotive financial services . 22

All dealers surveyed offer finance, motor insurance and road assistance... . 22

Number and nature of schemes .... 23

Manufacturers’ policies dominate warranties and assistance market, but not motor insurance 23

Consumer uptake of automotive financial services .... 25

Take-up rates for new vehicles substantially outstrip those for used vehicles ... 25

Competitor dynamics: dealer partnerships ... 27

Finance and leasing: BBVA Bancomer is the largest external lender by a significant margin ... 27

Creditor insurance: packaged with finance, this has a 100% take-up rate where offered 29

Motor insurance: this is purchased from dealers with almost 60% of new cars . 29

Extended warranties: only one in ten new car owners buys this cover at the point of sale ... 31

Road assistance: free government aid impacts the sale of assistance packages .. 33

Automotive manufacturer brand survey . 35

Provision of consumer automotive financial services . 35

Finance, motor insurance and road assistance are provided by all manufacturers surveyed.... 35

Competitor dynamics: manufacturer brand partnerships 37

Finance and leasing: over half of manufacturers use external finance providers… .... 37

…while captive NR Finance is the single largest finance provider by weighted share 37

Creditor insurance: one quarter of manufacturers use external partners . 39

Motor insurance: the top three insurers hold 50% of the weighted partnerships… 41

…with Inbursa potentially poised to make substantial inroads .. 41

Extended warranties: almost all manufacturers provide these themselves... .... 43

Road assistance: again, manufacturers tend to organise this themselves ... 45





Tabellenverzeichnis Marktanalyse 'Consumer Automotive Financial Services in Mexico'



LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY .. 1

Key market data for consumer automotive financial services in Mexico, 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 Mexico, 2007 to 2011 ... 8

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

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

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

New / used passenger car finance market in Mexico, segmented by distribution channel: values, 2007 to 2011 . 13

New / used passenger car finance market in Mexico, segmented by distribution channel: values and volumes, 2007 to 2011 (data) .. 14

% split between the different types of finance and leasing contract sold at the point of sale in Mexico, 2011 16

Total revenues from consumer automotive insurance, warranty and assistance markets in Mexico, 2011 17

Total revenues from consumer automotive insurance, warranty and assistance contracts in Mexico, 2011 (data) 19

% split between the different types of creditor insurance policy sold at the point of sale in Mexico, 2011.. 20

% split between the different types of motor insurance policy sold at the point of sale in Mexico, 2011 .... 21

% of dealers in Mexico offering each type of automotive financial service, 2011 . 22

Average number of tied and non-tied schemes offered by dealers in Mexico for each type of automotive financial service, 2011 ... 24

Average number of tied and non-tied schemes offered by dealers in Mexico for each type of automotive financial service, 2011 (data) ... 24

% of new and used car purchasers in Mexico acquiring each type of automotive financial service at the point of sale, 2011 .... 26

Provision of finance and leasing by dealers in Mexico, 2011: provision rate, product sources and provider share of non-tied partnerships . 28

Provision of motor insurance by dealers in Mexico, 2011: provision rate, product sources and provider share of non-tied partnerships . 30

Provision of extended warranties by dealers in Mexico, 2011: provision rate, product sources and provider share of non-tied partnerships . 32

Provision of road assistance by dealers in Mexico, 2011: provision rate, product sources and provider share of non-tied partnerships . 34

Comparison of the provision of each type of automotive financial service by manufacturer brands and dealers in Mexico, 2011 36

Provision of finance and leasing by manufacturer brands in Mexico, 2011: provision rate, operating models and weighted provider share of partnerships .... 38

Provision of creditor insurance by manufacturer brands in Mexico, 2011: provision rate, operating models and weighted provider share of partnerships .. 40

Provision of motor insurance by manufacturer brands in Mexico, 2011: provision rate, operating models and weighted provider share of partnerships .. 42

Provision of extended warranties by manufacturer brands in Mexico, 2011: provision rate, operating models and weighted provider share of partnerships .... 44

Provision of road assistance by manufacturer brands in Mexico, 2011: provision rate, operating models and weighted provider share of partnerships .. 46

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