The top five companies in the US auto finance industry are Ally Financial, Capital One Auto Finance, Wells Fargo Auto Loans, Chase, and Toyota Financial Services. These companies have a collective market share of 26.05%.
US AUTO FINANCE MARKET AT A GLANCE
- At 30.7%, banks in the US such as Chase have the largest share of the auto finance market closely followed by captive lenders like Toyota Financial Services at 30.6%.
- Credit unions like Alliant Credit Union have a 21.3% share while finance companies - such as RoadLoans by Santander Consumer USA - have an 11.2% share, and BHPH (Buy here, pay here dealerships) have the least share at 6.1%.
- By market share, the top auto finance companies in the US are Ally Financial, Wells Fargo, Chase, Capital One, and Toyota Financial Services.
- Others include Ford, Nissan Infiniti Financial Services, Santander Consumer USA, Honda, and Bank of America.
- Also known as Ally Auto Finance, Ally Financial has a 5.75% share of the US auto finance industry.
- Ally Financial prides itself in the fact it is the oldest company in the auto finance industry. It has been in the auto finance industry for over a hundred years. According to the company, this means it has more experience catering to dealerships and customers than competitors.
- The company also has a large network of dealers. It current serves more than 18,000 dealers in the US.
Capital One Auto Finance
- Capital One Auto Finance has a 5.74% share of the US auto finance industry.
- Capital One's value proposition is that it offers several tools which allow people to check rates and see if they pre-qualify for an auto loan with no impact on their credit score.
- One of its tools is an auto loan calculator. This allows people to figure out what their monthly payment/loan amount will be and see what works for them.
- Its loan terms can include "the price of the car as well as the tax, title and other relevant fees" thus lowering the total out-of-pocket cost of its users.
- The company has a network of 12,000 dealers in the US.
WELLS FARGO AUTO LOANS & FINANCING
- Wells Fargo has a 5.66% share of the US auto finance industry.
- Wells Fargo offers competitive rates and terms and 24/7 access to statements and mobile alerts. This means auto finance payments can be seen online without calling a dealership or their customer service team.
- Compared to competitors, Wells Fargo makes the auto finance process easier for borrowers by offering private party purchases without a dealership as the middle man.
- Wells Fargo also claims auto loan funding can be received on the same day compared to other auto finance companies which can take up to a month.
- It has a network of more than 11,000 dealers in the US.
- Chase has a 4.97% share of the US auto finance industry.
- Although Chase has stringent auto finance terms, it boasts of its easy online application process and the fact that it offers auto loans to customers in all 50 US states.
- Chase has also partnered with some car manufacturers including Mazda and Subaru. This makes it a lot easier for consumers wanting to buy these vehicles to get loans.
- In addition, it has no loan origination fee and offers customers a "guaranteed discount on new vehicles at participating dealerships."
TOYOTA FINANCIAL SERVICES
- Toyota Financial Services has a 3.93% share of the US auto finance industry.
- Toyota Financial Services offers a wide range of special financing programs.
- With Toyota Financial services, borrowers can apply for preapproval online.
- Compared to other auto finance companies - which will only take borrowers with a credit score of over 650, Toyota Financial Services claims its value proposition lies in its willingness to "consider borrowers with limited credit histories."
In order to provide the top auto finance companies in the US and their value proposition, we first relied on market research reports by companies like Ibis World - to figure out the companies. While these market research reports mentioned Ally Financial and Chase Auto Finance as some of the companies dominating the industry, they did not provide the market share of these companies. Next, we turned to data intelligence platforms like Statista but we only found outdated information.
We then examined financial news resources including Super Money among many others. Upon examining them, we found that they used the terms "auto loans" and "auto finance" interchangeably perhaps due to the fact financing a vehicle requires a loan in most cases. As such, most of our findings refer to auto loans. In addition, these financial news platforms referenced an Experian study done on the state of the US automotive finance market. The study was published in 2018 but some of the data provided there is outdated. We located the top auto finance companies but the market share provided was from 2016. We attempted finding more recent data by reviewing the annual reports of these companies but they only provided their market share of the finance industry in general not the auto loans/finance industry. We also tried estimating a more recent market share by compiling their auto finance revenue. However, these companies only provided aggregate revenues. As such, we provided each company's 2016 market share. The value proposition of these companies was gathered from the missions and values they outlined on their websites. Statements made by their executives have also been used for their value proposition. The website of each company is hyperlinked to their name.