Consumer Automotive Financial Services in Southern and Western Europe
NEW YORK, Oct. 10, 2011 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
Consumer Automotive Financial Services in Southern and Western Europe
http://www.reportlinker.com/p0444429/Consumer-Automotive-Financial-Services-in-Southern-and-Western-Europe.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Passenger_Car
Finaccord's report titled Consumer Automotive Financial Services in Southern and Western Europe investigates the market for automotive financial services linked to sales of new and used passenger cars in Southern and Western Europe. In addition to analysing the EUR 105.8 billion market for finance and leasing services, the study also covers ancillary automotive financial services markets including creditor insurance, motor insurance, road assistance, extended warranties, pre-paid service contracts and GAP insurance. The revenues generated from high margin ancillary products, which Finaccord quantifies for the first time in any published study, are crucial to enhancing the profits of a variety of market participants including dealers, manufacturers and independent finance providers. The report draws on a survey of 500 leading car dealerships in eight countries in Southern and Western Europe, Belgium, France, Ireland, Italy, the Netherlands, Portugal, Spain and the UK, as well as an analysis of the approach to consumer automotive financial services of leading manufacturer groups typically representing between 30 and 40 automotive brands, in the same countries. 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 Southern and Western Europe. Key features of this report include: - coverage of the six distinct sectors within consumer automotive financial services, namely finance / leasing, creditor insurance, motor insurance, road assistance, extended warranties, pre-paid service contracts and GAP insurance, plus top level findings for other niche insurance markets, namely loss of driving licence insurance, MOT insurance, scratch, dent and alloy insurance, and tyre insurance; - for the seven major products, provision of hitherto unpublished market size and segmentation data for each of these markets generated from Finaccord's proprietary European Automotive Financial Services Model; - clear analysis of the market for consumer finance and leasing services related to new and used car sales by distribution channel, differentiating between the point of sale and direct lenders; - presentation of unique data from the survey of dealerships illustrating average customer take-up rates for consumer automotive financial services at the point of sale in each country; - identification of the partners used for consumer automotive financial services by both dealerships and manufacturers, or their local importers, with contextual commentary concerning key competitors.
TABLE OF CONTENTS
0.0 EXECUTIVE SUMMARY ... 1
The credit crisis and recession have shaken the world of automotive financial services ... 1
Consumers have shifted away from direct lending to point-of-sale finance and cash-only sales .. 1
The point-of-sale car finance markets in Ireland and Spain have suffered most... . 2
... while they have risen substantially in Belgium .. 3
The number of providers used by dealers has decreased, to the benefit of captives . 3
Revenues from other financial services are worth 5% or more of car sales in France, Portugal and Spain . 4
Five financial products generate revenues around EUR 1 billion a year or more ... 5
1.0 INTRODUCTION ... 6
The focus of the report is on financial services related to the sale of passenger cars to individuals .. 6
Rationale ... 6
Financial services provision is crucial to the profitability of automotive entities… ... 6
… and extends to a range of insurance, warranty and assistance concepts… .. 6
… although published information on these markets remains at a premium .. 7
Methodology . 7
Dealer survey 7
Manufacturer survey . 9
Market data . 10
Definitions ... 11
Finance and leasing products .. 11
Insurance, warranty and assistance products . 11
Captives and non-captives ... 12
Abbreviations .. 13
PartnerBASE™ .. 13
Finaccord 13
2.0 REGIONAL OVERVIEW .. 16
Introduction . 16
Passenger vehicle data . 17
Mature markets mean that the car parc is growing very slowly . 17
France overtook Italy and the UK to become the largest market for new cars in the region... . 18
... while a rapid turnover in car ownership means that the Netherlands and UK have large used car markets ... 19
PSA Peugeot Citroën is the regional leader, thanks to its strength in France... 20
... while Volkswagen Group has the most consistently high market share ... 20
The top five manufacturers account for two thirds of all registrations 20
Finance and leasing ... 22
Market size and growth ... 22
The UK and France make up more than half the region's total of finance and leasing agreements... 22
... while Italy overtakes France for the volume of point-of-sale finance contracts only... .. 22
… and overtakes the UK to be the largest market for point-of-sale finance by value ... 25
Private car finance in the region peaked in 2008 with a market value of EUR 32.7 billion ... 27
The credit crisis has reduced direct lenders' appetite for unsecured personal lending. 28
... while captive providers have sought to support sales of new cars... . 28
... with a weaker performance for the dealer channel for used cars .. 28
The average value of cars rose during the boom years but has slowed with the economic down-turn ... 30
The overall market is evenly divided between point-of-sale and direct finance in terms of volume... .. 30
... for both new and used cars ... 30
Survey results . 32
Provision of finance and leasing services is clearly below 100% in Ireland and the Netherlands 32
There is only a small variation in the number of providers used for finance and leasing... ... 33
... and this variation has shrunk rapidly with the credit crisis .. 34
Captive finance providers have a relationship with 85% of car dealers... . 35
... though captive-only relationships are a minority in Ireland and the UK . 35
Average customer take-up rates at the point of sale are highest for new cars in Spain and Italy 37
Take-up rates through dealers have plunged in Ireland but increased in Spain ... 39
Loans are the most common type of finance and leasing contract in six countries out of eight ... 40
At least 85% of manufacturers and importers have partners for finance and leasing, outside Ireland 42
Creditor insurance .. 43
Market size .. 43
Only three countries have a substantial market for this form of insurance sold by the automotive trade 43
Survey results . 44
Dealers offering creditor insurance are a minority in the Netherlands and the UK ... 44
Naturally, high take-up rates are achieved where this product is bundled automatically... ... 46
... supported by high provision rates of creditor insurance by dealers in France, Italy, Portugal and Spain 48
Manufacturer brands' provision of this form of insurance largely depends on their provision of finance . 50
Motor insurance .. 51
Market size .. 51
The automotive channel generates nearly EUR 750 million a year in motor insurance premiums in Italy .. 51
... although the influence of the automotive trade is likely to be greatest in Portugal 52
Survey results . 53
Only half of dealers offer motor insurance in France and Belgium 53
Only dealers in Spain work with more than two motor insurance providers, on average . 54
Captive insurance providers are mostly used in Belgium and France... ... 55
... but take-up rates are very low in these two countries 57
The take-up rate of motor insurance with used cars is lower than for new cars everywhere except Portugal 58
Enthusiasm for branded or endorsed motor insurance is high in six of the eight countries investigated . 60
Road assistance . 61
Market size .. 61
The UK and France are the largest markets for road assistance distributed through the automotive channel... 61
Survey results . 62
... with Italy as the only country where less than 90% of dealers distribute road assistance 62
Dealers in Spain use the largest number of road assistance providers 63
Non-captives are least used in Belgium for road assistance . 64
Automatic packaging of road assistance with new car sales dips in France and Italy... ... 66
... and the take-up for used car sales is especially low in Italy ... 67
Road assistance is offered by all manufacturers in five out of eight countries .. 69
Extended warranties .. 70
Market size .. 70
Portugal has a much larger market for extended warranties than might be expected.. 70
Survey results . 71
...while sales in Ireland are limited by the relatively low proportion of dealers selling this product ... 71
The highest average number of providers is to be found in the region's largest and smallest markets... 72
Non-captive providers are important in the UK as well as in Ireland . 73
Spain and Portugal have the highest take-up rates for new and used cars respectively... .. 75
... while low provision rates by dealers reduce sales with new cars in the UK .. 76
Ireland is the only country where manufacturers and importers do not generally offer extended warranties .. 78
Pre-paid service / maintenance contracts ... 79
Market size .. 79
The Italian and Spanish markets are proportionately much smaller than France and the UK . 79
Survey results . 80
19 out of 20 French dealers offer pre-paid service contracts... .. 80
... and they use the largest average number of providers .. 81
No non-captive pre-paid service contract providers were identified in Italy ... 82
Pre-paid service contracts are taken out by a third of customers buying a new car in the UK when available... 84
... falling to a quarter after adjusting for dealerships that do not offer it . 85
Manufacturers and importers in France and Portugal are most likely to offer pre-paid service contracts ... 87
GAP insurance ... 88
Market size .. 88
No market exists for separate GAP insurance sold at the point of sale in the Netherlands and Portugal ... 88
Survey results . 89
Dealers in France and the UK nearly always offer GAP insurance ... 89
Dealers work with a limited number of providers, even in France . 90
Only captive providers were identified in Belgium .. 91
Take-up rates exceed one third in the UK for both new and used car sales... .. 93
... but fall below 5% for used car sales in four countries when adjusting for dealers that do not sell it . 94
90% of manufacturer brands in France and the UK offer GAP insurance 96
Niche insurance products ... 97
Tyre insurance is the niche product most commonly offered by dealers... ... 97
... while MOT insurance is offered by many UK manufacturers 98
3.0 BELGIUM 99
Introduction . 99
Passenger vehicle data ... 100
New car sales reached a new peak in 2010... .. 100
.. though used car sales by dealers are in a long-term decline 100
Higher-value brands hold a substantial share of the market in Belgium . 102
Market size for consumer automotive financial services .. 103
Finance and leasing - market size and growth . 103
Point-of-sale finance for new cars has performed well since 2006... ... 103
... though direct loans for used cars have shown no growth over this period .. 103
Half of finance contracts are made up of 'classic' loans ... 106
Automotive insurance, warranty and assistance markets by size, 2010 . 107
Methodology 107
The Belgian market is worth more than EUR 250 million a year... .. 107
... though only a fifth comes from creditor insurance, GAP insurance or road assistance . 108
Automotive dealer survey .. 110
Dealers concentrate on six core products... . 110
... with no activity for several niche products . 110
Captives dominate dealers' distribution partnerships ... 112
Take-up rates never exceed 50% except for road assistance . 113
Over a third of customers take out GAP insurance on new cars, where this is available ... 113
Competitor dynamics: dealer partnerships ... 115
Finance / leasing: Van Breda remains the leader, but the credit crisis has taken its toll on Fortis . 115
Creditor insurance: finance providers not dealers arrange this product .. 116
Motor insurance: only three non-captives were identified in this area . 117
Road assistance: automatic provision means that captives are the dominant providers ... 118
Extended warranties: Dynassurances and MAPFRE Asistencia are the only non-captives identified .. 119
Pre-paid service contracts: three non-captives are present, while some dealers operate their own schemes . 120
GAP insurance: no non-captives were found to be offering this product through dealers .. 121
Competitor dynamics: manufacturer brand partnerships . 122
Manufacturer brands' provision of motor and GAP insurance exceeds that of dealers... ... 122
... who have not shown much sign of innovation in selling ancillary financial products .. 123
Finance / leasing: GMAC has joined the joint ventures, amid the pressure of the credit crisis .. 124
Creditor insurance: only Peugeot and Citroën use a captive provider 126
Motor insurance: ACTEL and Servis are the leading providers for the automotive channel .. 127
Road assistance: six breakdown companies operate with manufacturers . 128
Extended warranties: Car Garantie, Real Garant and RAC are the leading non-captive competitors .. 129
Pre-paid service contracts: only RAC and Axus have deals with manufacturer brands as non-captives .. 130
GAP insurance: only one captive insurance company offers this cover.. 131
4.0 FRANCE 132
Introduction ... 132
Passenger vehicle data ... 133
New car sales dipped again in 2010, after a good performance in 2009 133
Domestic manufacturer groups account for nearly six new car sales out of ten... .. 135
... and Fiat was the only other major group to increase market share since 2006 .. 135
Market size for consumer automotive financial services .. 136
Finance and leasing - market size and growth . 136
Point-of-sale finance for new cars has been the best part of the market over 2006 to 2010.. 136
... direct lending for used car sales has been the weakest part, because used car sales have declined... ... 136
... and lower average car prices have reduced the value of direct loans further . 138
Loans made up 55% of point-of-sale finance, with the rest divided between three types of leasing . 140
Automotive insurance, warranty and assistance markets by size, 2010 . 141
Methodology 141
Five segments of this market generate revenues worth more than EUR 250 million each per year... .. 141
... led by motor insurance, extended warranties and pre-paid service contracts... . 142
... followed by GAP insurance and creditor insurance.. 143
Automotive dealer survey .. 145
Six major financial services are offered by nearly all dealers because they are often packaged together... . 145
... and niche insurance covers are also often packaged together ... 145
The majority of dealers only work with their motor brand's captive provider ... 147
Creditor insurance is the 'paid-for' product most often taken out, where relevant... ... 148
... take-up rates for finance / leasing contracts and extended warranties exceed 30%... ... 148
... and even niche products have take-up rates of 15% or more, thanks to packaging .. 148
Competitor dynamics: dealer partnerships ... 150
Finance / leasing: Cetelem and CGI are the dominant finance houses .. 150
Creditor insurance: finance providers not dealers arrange this product .. 151
Motor insurance (one year / long-term): AXA is the only mainstream insurer active as a non-captive .. 152
Short-term motor insurance: captives are the main provider for the minority of dealers who sell this cover . 153
Road assistance: captives and finance providers distribute the bulk of road assistance contracts ... 154
Extended warranties: Cirano, Icare and RAC have a foothold in this market . 155
Pre-paid service contracts: among non-captives, specialist motor services companies vie with the lenders ... 156
GAP insurance: finance houses lead the non-captives because this is packaged with finance contracts 157
Scratch, dent and alloy insurance was provided by Identicar and Eurodatacar . 158
Tyre insurance: Michelin offers tyre insurance as a stand-alone product ... 159
Competitor dynamics: manufacturer brand partnerships . 160
Manufacturers' provision is well aligned with dealers' requirements for most products .. 160
Finance / leasing: captives dominate the provision of finance for manufacturer brands... . 162
... with Crédit Agricole as the most important non-captive lender 162
Creditor insurance: non-captives are most often used, aside from PSA and Renault Nissan ... 164
Motor insurance: Altima Assurances has access to the majority of new car buyers .. 166
Short-term motor insurance: the main domestic brands offer this type of cover from Altima Assurances . 167
Road assistance: every manufacturer brand offers assistance ... 168
Extended warranties: RAC is the leading external provider . 170
Pre-paid service contracts: nearly all manufacturers offer this, and most use internal or captive providers .. 171
GAP insurance: Covéa Fleet is the dominant provider 172
Tyre insurance: maintenance contracts can include options for repairing punctures . 173
5.0 IRELAND ... 174
Introduction ... 174
Passenger vehicle data ... 175
New car sales remain a long way below the peak of 2007... ... 175
... and the outlook for 2011 is bleak .. 175
Toyota was the third largest manufacturer group in Ireland for 2009 .. 177
Market size for consumer automotive financial services .. 178
Finance and leasing - market size and growth . 178
Point-of-sale finance for new cars has collapsed since 2007... ... 178
... with a strong shift to cash sales . 178
Nine finance and leasing contracts out of ten are hire purchase . 181
Automotive insurance, warranty and assistance markets by size, 2010 . 182
Methodology 182
Sales of all ancillary financial products are low in Ireland... . 182
... with no evidence of motor insurance being sold by dealers 183
Automotive dealer survey .. 185
Only three products are sold by more than 50% of dealers . 185
The number of partners used for finance and leasing has nearly halved since 2006 . 186
Road assistance aside, the highest take-up rate is for pre-paid service contracts on new cars 187
Competitor dynamics: dealer partnerships ... 189
Finance / leasing: GE Money, Bank of Scotland and Friends First have retreated from the market . 189
Creditor insurance: finance providers not dealers arrange this product .. 190
Road assistance: the RAC works with 10% of dealers surveyed 191
Extended warranties: MAPFRE Asistencia is the leading non-captive provider in Ireland . 192
Pre-paid service contracts: all non-captive schemes are run by dealers themselves 193
GAP insurance: no non-captives were found to be offering this product through dealers .. 194
Competitor dynamics: manufacturer brand partnerships . 195
Manufacturers could expand the provision of extended warranties, GAP insurance and service contracts . 195
Finance / leasing: there are only three providers across all 30 manufacturers brands ... 197
Creditor insurance: only Volkswagen Bank has its own partner, in the form of Pinnacle .. 199
Motor insurance: Aviva and Zurich are the only underwriters with manufacturer brand partners .. 200
Road assistance: the AA has over half of all partnerships, weighted by car sales . 201
Extended warranties: only five manufacturer brands offer this product in Ireland .. 202
Pre-paid service contracts: BMW Group, Ford and Mazda have a product for these contracts 203
GAP insurance: Pinnacle and Zurich share seven partnerships between them . 204
MOT insurance: a niche too far? ... 205
6.0 ITALY . 206
Introduction ... 206
Passenger vehicle data ... 207
New car sales dropped for both individual and commercial customers between 2006 and 2010... .. 207
Fiat was able to further increase its market share between 2006 and 2009 ... 209
Market size for consumer automotive financial services .. 210
Finance and leasing - market size and growth . 210
A higher proportion of car buyers in Italy now pay in cash only than in the past... .. 210
...while direct lending has suffered a bit less than point-of-sale finance during the credit crisis . 211
Classic loans dominate the type of contracts taken out by private customers 213
Automotive insurance, warranty and assistance markets by size, 2010 . 214
Methodology 214
Two products account for more than 60% of the overall revenue... 214
... led by motor insurance... . 215
... and followed by creditor insurance... . 215
...while GAP insurance has also found a market in Italy .. 216
Automotive dealer survey .. 218
Four types of financial products are offered by at least 90% of dealers in Italy .. 218
Dealers work with an average of close to two providers for finance and leasing 219
Extended warranties have similar take-up rates for new and used cars where the product is available ... 220
Competitor dynamics: dealer partnerships ... 222
Finance / leasing: close to half of all dealers work with both a captive and non-captive provider .. 222Creditor insurance: it is common for dealers to offer this product 223
Motor insurance: often motor insurance is sold as part of a finance contract . 224
Road assistance: a number of assistance providers compete for breakdown recovery insurance in Italy 225
Extended warranties: the great majority of dealers in Italy offer extended warranties 226
Pre-paid service contracts: dealers' own schemes predominate 227
GAP insurance: Cardif has secured a dominant position in terms of the number of partnerships . 228
Competitor dynamics: manufacturer brand partnerships . 229
Manufacturer brands' provision of finance / leasing currently lags that of dealers .. 229
Finance / leasing: FGA Capital accounts for more than a third of the weighted provider share of partnerships ... 231
Creditor insurance: some key brands work with more than one provider ... 233
Motor insurance: manufacturer brands of the Fiat Group work with two insurance providers ... 235
Road assistance: Europ Assistance has carved out a dominant position in this market 237
Extended warranties: most manufacturer brands work with an external partner 238
Pre-paid service contracts: internal provision is the standard operating model .. 239
GAP insurance: Genworth Financial and Cardif account for the bulk of partnerships 240
7.0 NETHERLANDS ... 241
Introduction ... 241
Passenger vehicle data ... 242
New car sales have nearly recovered to the pre-credit crisis level .. 242
The turnover rate on passenger cars is high, resulting in a large used car market 242
Toyota rose from sixth to third place for new car registrations between 2006 and 2009 244
Market size for consumer automotive financial services .. 245
Finance and leasing - market size and growth . 245
Direct lenders have increased their share of the market... ... 245
... such that only a quarter of finance and leasing contracts are made at the point of sale 245
A fall in average car prices has reduced the value of the finance and leasing market ... 246
Six different types of finance and leasing product are available... ... 248
... including one unique to the Netherlands... 248
Automotive insurance, warranty and assistance markets by size, 2010 . 249
Methodology 249
Motor insurance is the most important ancillary financial product... 249
... with premiums for creditor insurance worth less than EUR 20 million for 2010 .. 250
Automotive dealer survey .. 252
Motor insurance and extended warranties are offered nearly as often as finance and leasing... .. 252
... but pre-paid service contracts and creditor insurance were the only other notable products . 252
Pre-paid service contracts are not usually provided by captives . 254
Over half of customers take up creditor insurance where relevant and available ... 255
Take-up rates among used car customers are not much lower than for new cars . 255
Competitor dynamics: dealer partnerships ... 257
Finance / leasing: ING leads the way in a fragmented market 257
Creditor insurance: finance providers not dealers arrange this product .. 258
Motor insurance: BOVAG and Centraal Beheer Achmea lead the way .. 259
Road assistance: BOVAG is the main independent provider .. 260
Extended warranties: dealers run their own schemes more often than they use an external non-captive 261
Pre-paid service contracts: BOVAG and The Warranty Group have developed a presence in this sector ... 262
Competitor dynamics: manufacturer brand partnerships . 263
Dealers rarely go beyond the products made available by manufacturers . 263
Finance / leasing: Alcredis and Ribank are the leading non-captive partners. 265
Creditor insurance: three providers hold all partnerships between them 267
Motor insurance: Unigarant and Generali hold two thirds of partnerships when weighted by sales .. 268
Road assistance: ANWB holds nearly half of all partnerships, weighted by new car registrations 269
Extended warranties: a third of partnerships are run by internal providers . 270
Pre-paid service contracts: no external companies have partnerships for these contracts 271
8.0 PORTUGAL .. 272
Introduction ... 272
Passenger vehicle data ... 273
New car sales surged in 2010, despite economic uncertainty... .. 273
... and the car parc exceeded 4.5 million vehicles for the first time in 2010 273
Fiat Group increased its market share by more than 70%, 2006 to 2009 ... 275
Market size for consumer automotive financial services .. 276
Finance and leasing - market size and growth . 276
Consumers are taking out more loans directly, at the expense of the dealer channel... 276
... and point-of-sale loans now make up less than two thirds of the market by value . 277
Three quarters of finance and leasing contracts are loans .. 279
Automotive insurance, warranty and assistance markets by size, 2010 . 280
Methodology 280
Cars are owned for a relatively long time in Portugal, to the benefit of products that can be renewed .. 280
Pre-paid service contracts and creditor insurance are significant products in Portugal .. 281
Automotive dealer survey .. 283
Dealers offer a consistent range of financial products and services... . 283
... but none offered the niche insurance products investigated 283
Both finance and motor insurance are regularly provided by non-captives. 285
Take-up rates are higher among used car customers for four products out of six .. 286
Competitor dynamics: dealer partnerships ... 288
Finance / leasing: Santander Consumer Finance works with a quarter of dealerships .. 288
Creditor insurance: all dealers offer this form of cover alongside finance contracts ... 289
Motor insurance: 15 insurers compete for business among 50 dealers .. 290
Road assistance: insurers rather than assistance companies act as dealers' partners . 291
Extended warranties: no single provider has established a lead in this area .. 292
Pre-paid service contracts: most dealers offer this product, but only one has its own scheme for it . 293
Competitor dynamics: manufacturer brand partnerships . 294
Many manufacturers lack a partner for motor insurance, which is a key product for dealers . 294
Finance / leasing: finance is provided by captives plus Santander Consumer Finance . 296
Creditor insurance: ALICO leads, thanks to its partnership with the Renault Nissan Group .. 298
Motor insurance: six insurance providers share 16 relationships 299
Road assistance: ACP dominates, followed by Mondial Assistance ... 300
Extended warranties: internal providers account for 40% of partnerships when weighted by sales .. 301
Pre-paid service contracts: Mondial Assistance and ACP are once again the main external providers 302
9.0 SPAIN 303
Introduction ... 303
Passenger vehicle data ... 304
New car sales in 2010 remain far below the levels of the boom years ... 304
Seven automotive brands vie for the lead in Spain... ... 306
... and Toyota has made the largest gains since 2006 . 306
Market size for consumer automotive financial services .. 307
Finance and leasing - market size and growth . 307
Direct lending for new cars has plummeted since 2006... ... 307
... and point-of-sale finance for used car sales has been the only growth area since 2006 ... 307
Point-of-sale finance on new cars is worth almost half of the total finance and leasing market . 308
Under 10% of cars are financed using leasing contracts . 310
Automotive insurance, warranty and assistance markets by size, 2010 . 311
Methodology 311
Motor insurance generates half the revenues from insurance, assistance and warranty products... 311
... creditor insurance and extended warranties make up another 37% of this market... . 312
... leaving just 9% between GAP insurance, pre-paid service contracts and road assistance ... 312
Automotive dealer survey .. 315
Dealers concentrate on five traditional financial products... . 315
... with a wider range for new cars especially... 315
... while niche risks can be covered through the wide range of motor insurance policies available in Spain . 315
Dealers work with a panel of motor insurers or with a broker .. 317
Take-up rates exceed 50% on three products... .. 318
... and used car customers tend to shun additional products ... 318
Competitor dynamics: dealer partnerships ... 320
Finance / leasing: BBVA and Santander are the leading non-captive providers 320
Creditor insurance: all dealers distributing finance and leasing also sell these policies . 321
Motor insurance: a highly competitive market with multiple providers . 322
Road assistance: motor insurers are the leading non-captives ... 323
Extended warranties: no company has real leadership for this product .. 324
Pre-paid service contracts: among non-captives, specialist motor services companies vie with the lenders ... 325
GAP insurance: Santander was the only non-captive provider identified by this survey 326
Competitor dynamics: manufacturer brand partnerships . 327
Manufacturers' provision is well aligned with dealers' requirements for most products .. 327
Finance / leasing: the largest brands have manufacturer captive providers... 329
... while other brands use a mixture of importers' captives, joint ventures and single partners .. 329
Creditor insurance: Cardif and ALICO lead the non-captive insurers .. 331
Motor insurance: few manufacturer brands use a single partner 333
Road assistance: the Spanish market is differentiated by the variety of operating models and partners in use ... 334
Extended warranties: OVERLEASE is the leading external provider in Spain ... 336
Pre-paid service contracts: only seven brands offer this service . 337
GAP insurance: brokers or captive brokers handle all GAP insurance for manufacturer brands .. 338
10.0 UNITED KINGDOM 339
Introduction ... 339
Passenger vehicle data ... 340
New car sales in 2010 have recovered slightly from the low level recorded in 2009... ... 340
... but this recovery is due to fleet and business customers, not the retail market .. 340
The recession increased the number of competitors in the market through the sale of several brands 342
Market size for consumer automotive financial services .. 343
Finance and leasing - market size and growth . 343
The credit crisis has restricted direct lenders' willingness to compete in this market... ... 343
... to the benefit of point-of-sale finance 344
Point-of-sale finance is split between hire purchase and personal contract plans .. 346
Automotive insurance, warranty and assistance markets by size, 2010 . 347
Methodology 347
Four types of automotive insurance, warranty and assistance products generate 95% of revenue... ... 347
... led by extended warranties... ... 348
... followed by pre-paid service contracts, motor insurance and GAP insurance... . 348
... with much smaller values for road assistance and creditor insurance 349
Automotive dealer survey .. 351
GAP insurance is the second-most commonly offered type of financial service offered by dealers .. 351
Dealers work with an average of three providers for finance and leasing ... 352
Two types of financial service are often provided automatically with a car purchase... .. 353
...while niche insurance products are far more popular than creditor insurance . 353
Competitor dynamics: dealer partnerships ... 355
Finance / leasing: Santander and Barclays have risen while Capital Bank and GE Money have sunk 355
Creditor insurance: finance providers not dealers arrange this product .. 356
Motor insurance (one year / long-term): dealers do not seek to sell this form of motor insurance . 357
Short-term motor insurance: Aviva was the only provider identified for short-term cover ... 358
Road assistance: three companies are seeking to challenge the dominance of captives . 359
Extended warranties: non-captives have nearly as many partnerships as captives... 360
Pre-paid service contracts: dealers' own schemes predominate 361
GAP insurance: MAPFRE ABRAXAS is the market leader measured by number of partners.. 362
MOT insurance: dealers are yet to take up manufacturer brands' propositions . 363
Scratch, dent and alloy insurance: non-captives are developing a niche overlooked by manufacturer brands 364
Tyre insurance: no fewer than seven non-captive companies are competing for a niche market . 365
Competitor dynamics: manufacturer brand partnerships . 366
Manufacturer brands' provision of scratch, dent and alloy insurance and tyre insurance lags that of dealers .. 366
Finance / leasing: GMAC has joined the joint ventures, amid the pressure of the credit crisis .. 368
Creditor insurance: Pinnacle Insurance leads the way by weighted share of partnerships 370
Motor insurance: nearly all manufacturer brands have a partner for this, despite low consumer take-up . 372
Road assistance: three companies share all partnerships between
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