A new automotive finance landscape is emerging, as detailed in a new whitepaper from specialist automotive consultancy and project delivery specialist, Elevenci, entitled Automotive Finance: at the Crossroads.
The paper outlines the most significant trends currently impacting the automotive sector — the shift from ownership to usership and changing personal transport requirements, to intelligent use of connected car data and the increasing number of digitally-driven mobility solutions and employee transport propositions available in the market.
The new whitepaper tackles the question of how the transformation in the sector coupled with economic volatility will affect the automotive finance providers, who will need to embark on an immediate reassessment of their strategy, their business models and operational activities in order to grow and further establish themselves in the motor finance market or run the risk of becoming less relevant and less viable.
Elevenci’s 26-page whitepaper provides a comprehensive look across the drivers of change that are causing a significant shift in the way OEMs and auto finance providers operate, including the move from a long-standing internal combustion driven, analogue auto platform to an electric, digital mobility ecosystem.
The paper considers the automotive finance organisations (captive automotive finance companies, banks and independent financial services business, and specialist fleet and leasing businesses) within the industry and how they will be affected by significant changes in vehicle technology, customers’ mobility needs, and increased regulatory and societal pressures.
The paper provides a self-assessment to test if auto finance organisations are fit for the future and looks at the challenges they face and the considerations they need to address to facilitate a successful change.
It highlights how the most significant transformational trends and issues might impact directly on the activities of automotive finance companies, discussing how lower new vehicle sales and the changing mix of ICE and BEV cars might encourage some auto finance companies to seek other revenue streams; how the convergence of retail customer and corporate customer auto financing and mobility propositions will trigger significant revisions to companies’ operating models; the risks and opportunities in the sector as many OEMs move to an agency distribution model; and the impact of further regulatory change on the development and delivery of mobility services.
Elevenci’s whitepaper contains a lot of thought-provoking content about the seismic changes facing the automotive finance landscape, that readers can discuss and debate. In such a fast-moving dynamic industry alongside economic challenges and headwinds, it is hard to say which of these current auto trends will become deep-rooted in the industry and which will just be a passing phase.
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