Improved Finance Schemes Encourage the Global Automotive and POS Finance Markets

LONDON, April 27 -- The global point-of-sale (POS) finance market for the automotive industry is experiencing high growth rates with reduced interest rates and end users warming up to the concept of borrowing money from finance companies to buy automobiles. The market is all set to expand exponentially in both western and eastern Europe.

Financial services have been subject to many changes in their legislative and economic environments due to value-added tax (VAT) issues on finance and insurance products, price increases and fluctuations in interest rates. Finance companies in Europe, China and North America have to focus on counteracting the resultant customer scepticism through educational advertising.

The automotive finance market in China is also aiming to enhance awareness among car buyers about various car-financing options other than cash. Globally, finance and insurance managers have to devise robust sales strategies that focus on customer retention at the expiry of finance agreements.

"Customers are attracted to value-added services and alternative finance products, hence finance companies need to invest in a strong value-added product strategy," reports Frost & Sullivan (http://www.transportation.frost.com) in the study titled The Changing Landscape of the Global Automotive and POS Finance Markets - Opportunities and Implications to Auto Finance Companies. "Warranties, free repairs, fuel cards, cash rebates, fuel discounts, insurance products are likely to draw greater customer interest."

Additional services are expected to help the western European POS finance markets to acquire 9 million finance cases worth 111 billion euros by 2010. The captives in the market are likely to maintain and consolidate their dominance over the new car market and may target the used car market next.

Finance products and car sales have received a further boost in the European markets through promotions, value-added services and improving affordability, despite the hike in car prices. Meanwhile, Internet finance companies are gradually expanding their base in the western European market by marketing to early adopters that are comfortable with online transactions.

On the other hand, the eastern European automotive POS finance market is expected to grow by nearly 5 per cent and obtain more than 1.6 million finance cases worth 10,257 million euros by 2011.

The captives in this region are anticipated to augment their market shares while independents will remain active through consolidations and dealer relations. Although the used car finance market is likely to expand simultaneously with increasing imports, captives will remain focussed on new car financing.

In North America, customers are discouraged by the increasing car prices despite numerous promotions and incentives from finance companies to maintain sales. This can be remedied largely through promotions and advertising.

"In the meantime, deregulation and encouragement for captive finance companies to enter the Chinese market will further intensify competition in the country," reports Frost & Sullivan. "The total number of finance cases is forecast to exceed 1,135,963 and the finance volume to reach US$4,900 million by 2011."

The Changing Landscape of the Global Automotive and POS Finance Markets - Opportunities and Implications to Auto Finance Companies is part of the AutoID Subscription, which includes research in the following regions: western and eastern Europe, North America and China. All research included in subscriptions provide detailed market opportunities and industry trends. All research is evaluated following extensive interviews with market participants. Interviews are available to the press.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Changing Landscape of the Global Automotive and POS Finance Markets - Opportunities and Implications to Auto Finance Companies please send an e-mail to Magdalena Oberland- Corporate Communications at magdalena.oberland@frost.com. Please provide the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

Changing Landscape of the Global Automotive and POS Finance Markets - Opportunities and Implications to Auto Finance Companies

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List of Keywords in this Press Release: automotive, POS finance, global, point-of-sale, VAT, value-added tax, captive, independent, research, information, market, trends, technology, service, forecast, market share

Magdalena Oberland, Corporate Communications- Europe, P: +44-207-915-7876, E: magdalena.oberland@frost.com