Australia Auto Financing Market

Australia Auto Financing Market Overview:

The Australia auto financing market size reached USD 8.26 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 19.03 Billion by 2033, exhibiting a growth rate (CAGR) of 8.70% during 2025-2033. Technological advancements and digital platforms are simplifying the auto financing process in Australia, making it more accessible, especially for younger, tech-savvy individuals. Additionally, the increasing interest in electric vehicles (EVs), attributed to sustainability concerns, government incentives, and evolving user preferences, are contributing to the expansion of the Australia auto financing market share.

Australia Auto Financing Market Trends:

Technological Advancements and Digital Platforms

Technological innovations are transforming the auto financing sector in Australia, especially with the emergence of digital platforms and mobile apps. The transition towards online funding resources is streamlining and improving the process of applying for and obtaining auto loans. Borrowers can easily evaluate loan proposals, track their funding progress, and manage payments using straightforward, user-friendly platforms. This digital shift attracts younger, tech-savvy individuals who prefer completing transactions online, thereby eliminating the need for physical visits to dealerships or banks. Furthermore, sophisticated data analysis and machine learning (ML) enable lenders to evaluate risk more precisely, allowing them to provide customized financing options and expedite loan approvals. These advancements are enhancing auto financing accessibility, even for those with minimal credit backgrounds, by reducing entry barriers. A notable illustration of this change is Hyundai Capital's introduction of Hyundai Finance in Australia in 2024. The firm launched a digital-first strategy featuring online applications and artificial intelligence (AI)-enhanced assistance, as well as Guaranteed Future Value (GFV) loans that provide customized financing for Hyundai and Genesis cars. This established Hyundai Capital's 12th worldwide subsidiary, greatly improving flexibility and affordability for clients in Australia. Through the integration of cutting-edge technologies and adaptable financing solutions, Hyundai Finance is contributing to the increasing digitalization of the Australian auto financing industry, simplifying access for clients to the vehicles they desire.

Shifting User Preferences Toward Electric Vehicles

The rising interest in EVs is significantly influencing the Australia auto financing market growth, driven by a heightened focus on environmental sustainability and a desire to reduce carbon emissions. With an increasing number of people seeking sustainable transportation solutions, EVs are emerging as a popular option. In response to this change, lenders are introducing specialized financing solutions tailored for EV purchasers, offering distinct terms, such as reduced interest rates, extended repayment periods, and perks like deferred payments. Government programs, such as subsidies and tax breaks for purchasing EVs, are also catalyzing the demand for these vehicles, creating a favorable environment for the expansion of the auto financing sector. A significant instance of this trend is the collaboration between Plenti and NAB, which introduced the ‘NAB powered by Plenti’ car and EV loan in 2024. Originally accessible to NAB employees, this loan offered a seamless digital application and management experience, financed and approved by NAB, and aimed to deliver a novel, user-centric solution for funding both conventional cars and EVs. This partnership highlights how financial organizations are responding to the growing interest in EVs by developing flexible, accessible loan options.

Australia Auto Financing Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type, source type, and vehicle type

Type Insights:

• New Vehicle
• Used Vehicle

The report has provided a detailed breakup and analysis of the market based on the type. This includes new vehicle and used vehicle.

Source Type Insights:

• OEMs
• Banks
• Credit Unions
• Financial Institutions

A detailed breakup and analysis of the market based on the source type have also been provided in the report. This includes OEMs, banks, credit unions, and financial institutions.

Vehicle Type Insights:

• Passenger Cars
• Commercial Vehicles

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes passenger cars and commercial vehicles.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Auto Financing Market News:

• In June 2025, Hyundai Capital Australia launched Kia Finance, expanding its auto finance offerings in Australia to cover all Hyundai Motor Group brands — Hyundai, Genesis, and Kia. The move includes products like Guaranteed Future Value (GFV), aiming to enhance customer access and boost automotive sales through flexible financing.
• In May 2025, Ford Australia partnered with Angle Auto Finance to launch Ford Finance, replacing MyFord Finance. This new initiative offers tailored vehicle finance solutions for both individual and business customers, including Guaranteed Future Value (GFV) options. The program aims to create a seamless, brand-integrated financing experience to boost automotive sales and client satisfaction.

Australia Auto Financing Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia auto financing market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia auto financing market on the basis of type?
• What is the breakup of the Australia auto financing market on the basis of source type?
• What is the breakup of the Australia auto financing market on the basis of vehicle type?
• What is the breakup of the Australia auto financing market on the basis of region?
• What are the various stages in the value chain of the Australia auto financing market? 
• What are the key driving factors and challenges in the Australia auto financing market?
• What is the structure of the Australia auto financing market and who are the key players?
• What is the degree of competition in the Australia auto financing market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia auto financing market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia auto financing market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia auto financing industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.