Marktanalyse - Consumer Automotive Financial Services in South Korea

Marktanalyse - 'Consumer Automotive Financial Services in South Korea'

Consumer Automotive Financial Services in South Korea investigates the market for automotive financial services linked to sales of new and used passenger cars in South Korea. 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 South Korea 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 30 automotive brands in South Korea. 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 South Korea.

Inhaltsverzeichnis Marktanalyse 'Consumer Automotive Financial Services in South Korea'



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

The South Korean market for new car sales is still growing at a good pace… .... 7

…while used car sales are increasing even faster ... 7

Hyundai and Kia account for about four in five new car registrations .... 8

Consumer automotive finance and leasing market ... 10

Market size and growth .. 10

More cars are financed than paid for in cash… . 10

...with both point-of-sale finance and direct lending gaining in importance ... 10

Point-of-sale finance is dominated by the new car segment. 11

Types of finance and leasing product . 13

A relatively large number of customers opt for operating leases in South Korea ... 13

Consumer automotive insurance, warranty and assistance markets .... 14

Market sizes 14

Motor insurance is by far the most important product sold by dealers in South Korea 14

Types of motor insurance policy .... 17

Most customers who take out motor insurance at the point of sale buy more than liability cover only 17

Automotive dealer survey .. 17

Provision of consumer automotive financial services . 17

Nearly all South Korean car dealers offer finance and / or leasing . 17

Number and nature of schemes .... 18

South Korean car dealers tend to work with a limited number of both tied and non-tied partners .. 19

Consumer uptake of automotive financial services .... 20

Take-up rates for finance and leasing for both new and used cars are comparatively high .. 20

Competitor dynamics: 22

Finance and leasing: dealers are an important distribution channel for finance and leasing in South Korea 22

Motor insurance: Samsung, Hyundai and LIG have established strong partnerships with dealers 24

Extended warranties: only a minority of dealers was found to offer extended warranties 26

Road assistance: new car buyers often obtain road assistance through the manufacturer’s warranty .... 28

Automotive manufacturer brand survey . 28

Provision of consumer automotive financial services . 28

Dealer provision rates are lower than manufacturer provision rates for motor insurance 28

Competitor dynamics: manufacturer brand partnerships 30

Finance and leasing: one provider accounts for the bulk of weighted partnerships .... 30

Motor insurance: a relatively high number of manufacturers do not offer motor insurance ... 32

Extended warranties: only a minority of manufacturers offer extended warranties 34

Road assistance: all the major brands in South Korea offer road assistance .... 36







Tabellenverzeichnis Marktanalyse 'Consumer Automotive Financial Services in South Korea'



LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY .. 1

Key market data for consumer automotive financial services in South Korea, 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 South Korea, 2007 to 2011 .... 7

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

New car registrations in South Korea, segmented by manufacturer brand, 2010 . 9

New / used passenger car finance market in South Korea, segmented by distribution channel: volumes, 2007 to 2011 ... 10

New / used passenger car finance market in South Korea, segmented by distribution channel: values, 2007 to 2011 ... 11

New / used passenger car finance market in South Korea, segmented by distribution channel: values and volumes, 2007 to 2011 (data) .. 12

% split between the different types of finance and leasing contract sold at the point of sale in South Korea, 2011 . 13

Total revenues from consumer automotive insurance, warranty and assistance markets in South Korea, 2011 . 15

Total revenues from consumer automotive insurance, warranty and assistance contracts in South Korea, 2011 (data) 16

% split between the different types of motor insurance policy sold at the point of sale in South Korea, 2011 17

% of dealers in South Korea offering each type of automotive financial service, 2011.. 18

Average number of tied and non-tied schemes offered by dealers in South Korea for each type of automotive financial service, 2011 .... 19

Average number of tied and non-tied schemes offered by dealers in South Korea for each type of automotive financial service, 2011 (data) ... 20

% of new and used car purchasers in South Korea acquiring each type of automotive financial service at the point of sale, 2011 ... 21

Provision of finance and leasing by dealers in South Korea, 2011: provision rate, product sources and provider share of non-tied partnerships . 23

Provision of motor insurance by dealers in South Korea, 2011: provision rate, product sources and provider share of non-tied partnerships . 25

Provision of extended warranties by dealers in South Korea, 2011: provision rate, product sources and provider share of non-tied partnerships . 27

Provision of road assistance by dealers in South Korea, 2011: provision rate and product source . 28

Comparison of the provision of each type of automotive financial service by manufacturer brands and dealers in South Korea, 2011 .. 29

Provision of finance and leasing by manufacturer brands in South Korea, 2011: provision rate, operating models and weighted provider share of partnerships .... 31

Provision of motor insurance by manufacturer brands in South Korea, 2011: provision rate, operating models and weighted provider share of partnerships .... 33

Provision of extended warranties by manufacturer brands in South Korea, 2011: provision rate, operating models and weighted provider share of partnerships .... 35

Provision of road assistance by manufacturer brands in South Korea, 2011: provision rate, operating models and weighted provider share of partnerships .... 37

• Auto Finance 2013
• Consumer Automotive Financial Services in Australia
• Emerging Opportunities in the China Auto Loan Industry: Market Size, Strategies, Products, and Competitive Landscape: Market Profile
• Emerging Opportunities in the Russian Auto Loan Industry - Market Size, Strategies, Products, and Competitive Landscape: Market Profile
• Emerging Opportunities in the Indian Auto Loan Industry: Market Size, Strategies, Products, and Competitive Landscape: Market Profile
• Automotive Finance and Leasing for Consumers in Emerging Global Markets
• Extended Warranties for New and Used Cars in Emerging Global Markets
• Consumer Automotive Financial Services in Argentina
• Consumer Automotive Financial Services in Brazil
• Consumer Automotive Financial Services in China
• Consumer Automotive Financial Services in Emerging Global Markets
• Consumer Automotive Financial Services in India
• Consumer Automotive Financial Services in Indonesia
• Consumer Automotive Financial Services in Mexico
• Consumer Automotive Financial Services in South Africa
• Consumer Automotive Financial Services in Taiwan
• Consumer Automotive Financial Services in Thailand
• Global Automotive Clubs: Affinity Marketing Opportunities for Financial Services Institutions and Other Organisations
• Global Automotive Retail
• Fleet Lessor Analysis Austria