Consumer Automotive Financial Services in Luxembourg

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Dec 06, 2013, 05:30 ET

MUMBAI, India, December 6, 2013 /PRNewswire/ --

Bharat Book Bureau presents Consumer Automotive Financial Services in Luxembourg. This report investigates the market for automotive financial services linked to sales of new and used passenger cars to individual buyers in Luxembourg. In addition to analyzing the market for finance and leasing services, the study also covers creditor insurance, motor insurance, road assistance, extended warranties, GAP insurance and prepaid service contracts. (http://www.bharatbook.com/finance-market-research-reports/consumer-automotive-financial-services-in-luxembourg.html)

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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 Luxembourg is provided in terms of gross advances and assets leased for 2008 to 2012 with splits between finance for new and used cars and between finance organized 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, GAP insurance and prepaid service contracts are sized in terms of gross written premiums and other revenues sold through the automotive trade (i.e. via dealers and manufacturers) in 2012. These markets, estimated to be worth EUR 21.4 million in total in 2012, are broken down between new and used cars, and between new contracts sold during 2012 and in-force business sold in previous years but still being renewed in 2012.

In addition to captive finance companies owned by manufacturer brands, organizations covered by the report include Alpha Credit, Automobile Club du Luxembourg, Autos diffusion M. Losch Service Leasing, Banquet International à Luxembourg, BGL BNP Paribas, Buy Way Personal Finance, CarGarantie, IMA Benelux, La Luxembourgeoise and Record Bank. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in Luxembourg.

Table of Contents:

EXECUTIVE SUMMARY

INTRODUCTION

What is this report about?

The focus of the report is on financial services related to the sale of passenger cars to individuals
Rationale
The provision of financial services is essential to support both car sales and profitability
This report offers a ground-breaking analysis of the subject in Luxembourg based on primary research
Methodology
Survey of dealers and manufacturers
Market data
Computation of market data is based on a complex set of assumptions and variables in order to provide market segmentations in unrivalled detail
External sources
Definitions
Finance and leasing products
Insurance, warranty and assistance products
Operating models
Tied and non-tied providers

MARKET ANALYSIS

Introduction

Passenger vehicle data
There was a fall in the volume of sales of both new and used cars between 2008 and 2012
German and French manufacturer groups share over 70% of new car registrations between them
Consumer automotive finance and leasing market
Market size and growth
The volume of cars financed fell in 2012 as a result of the sharp decline in used car sales although the contraction was less pronounced when measured by value
Types of finance and leasing product
Nearly three quarters of private car finance takes the form of simple loans with no option to return the car
Consumer automotive insurance, warranty and assistance markets

Market sizes

In total, the automotive trade is likely to have sold policies worth over EUR 20 million in 2012
Survey of automotive dealers and manufacturer brands - overview
Introduction
Provision of consumer automotive financial services
Finance and leasing, extended warranties and road assistance are the core services offered by dealers with interest in selling motor insurance limited by local regulations
Number and nature of dealer schemes
On average, dealers are slightly more likely to used tied partners for finance and leasing
Types of creditor insurance policy sold by dealers
The majority of dealers offer creditor insurance policies giving comprehensive protection
Types of motor insurance policy sold by dealers
Not all dealers selling motor insurance policies offer comprehensive cover
Sources of road assistance distributed by dealers
Road assistance is sometimes available from sources other than manufacturers' factory warranties
Consumer uptake of automotive financial services through dealers
Take-up rates for point-of-sale finance are very similar for new and used car sales but car buyers from outside Luxembourg cannot take out certain automotive financial services
Survey of automotive dealers and manufacturer brands - partnerships
Introduction

Finance and leasing

Alpha Credit claims the largest share of partnerships as a non-tied provider in a sector in which seven non-tied competitors are visible in total
The same company is also the leading non-captive partner for manufacturer brands although captive providers account for 70% of the weighted share of partnerships
Across all types of provider, the leading firm has an implied market share of new business of 31.0%

Creditor insurance

Only two providers enjoy direct ties with manufacturer brands

Motor insurance

Comparatively few dealers intermediate motor insurance
La Luxembourgeoise is the leading partner among manufacturer brands

Extended warranties

CarGarantie is the external non-tied provider that is most frequently used among dealers while Allianz takes the lead among manufacturers' partners thanks to its relationship with the VW group
A combined analysis assigns an implied 24.6% market share to the leading competitor

Road assistance

Tied schemes dominate the provision of road assistance
Automobile Club du Luxembourg is the dominant local assistance provider although not all manufacturer brands use it for their own assistance programs

GAP insurance

A small proportion of dealers offer finance GAP policies with penetration also limited among manufacturer brands

Prepaid service contracts

Arrival and Axes offer prepaid service contracts through dealers albeit the majority of manufacturer brands have configured their own products in this sphere

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For more information on the report: http://www.bharatbook.com/finance-market-research-reports/consumer-automotive-financial-services-in-luxembourg.html

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