Australian Automotive Financing Market 2025: Size, Share, Trends, Growth & Analysis Report by 2033

Market Overview

The Australian automotive financing market stood at USD 5,902.6 Million in 2024, with a projected expansion to USD 10,344.1 Million by 2033. This growth is underpinned by rising vehicle ownership, flexible financing options, and supportive government initiatives. The forecast period spans 2025-2033, with a CAGR of 6.43%. The market is propelled by demand for new and used vehicles, economic stability, and the convenience of digital financing platforms.

How AI is Reshaping the Future of Australian Automotive Financing Market

• AI-driven digital platforms streamline loan applications, offering immediate credit approvals and automated documentation processing, enhancing convenience and efficiency for consumers.
• Machine learning algorithms enable lenders and dealerships to offer personalized loan structures, including balloon payments and variable interest rates, improving budget management and appealing to diverse customer segments.
• AI-powered credit scoring models enhance risk assessment and enable real-time loan approvals, thus broadening financial product accessibility.
• Integration of AI in online marketplaces facilitates real-time loan comparison tools for pre-owned vehicles, boosting financing uptake among budget-conscious buyers.
• The use of AI-driven analytics supports predictive maintenance and bundled financing packages combining insurance and servicing, adding value to automotive loans.
• Government support for electrification, combined with AI-based customer targeting, is accelerating financing for electric vehicles through tailored incentives and flexible repayment options.

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Market Growth Factors

The Australian automotive financing market is buoyed by increasing vehicle ownership and demand. According to the Australian Bureau of Statistics, the national fleet included 20.1 million registered motor vehicles as of January 2021, with an overall increase of 1.7% in registrations from the previous year. This growth spans all states and territories, with notable rises in Queensland, South Australia, and the Australian Capital Territory at 2.3% each. The demand for both new and used vehicles drives the need for flexible automotive financing solutions, enabling a broader base of Australians to purchase vehicles. This growing fleet size reinforces the market’s expansion, supported by consumer preference for diverse vehicle types and rising registrations.

Supportive government policies also significantly bolster this market. A notable initiative is the Australian Renewable Energy Agency’s funding of $4.76 million awarded to Europcar Mobility Group for the installation of 256 electric vehicle chargers across 41 sites nationwide. This $110.6 million project aims to deploy about 3,100 rental EVs over three years and supports the integration of electric vehicles in airports and regional hubs. These government-backed programs enhance EV ownership accessibility and sustainable transportation financing, which stimulates market growth for automotive financing by encouraging consumers to choose greener vehicle options.

The shift toward more flexible loan structures is another crucial trend driving market growth. Australian consumers increasingly prefer car financing with customizable options such as balloon payments, variable interest rates, and extended loan terms. These flexible alternatives lower initial payment burdens and suit younger buyers and purchasers of premium vehicles by allowing better financial planning. Lenders and dealerships have adapted by offering personalized plans complemented by digital platforms that enable borrowers to simulate and adjust repayment scenarios. This innovation enhances market penetration among first-time buyers and value-conscious consumers, thereby expanding the overall automotive financing market in Australia.

Market Segmentation

Type Insights:

• New Vehicle
• Used Vehicle

Source Type Insights:

• OEM
• Banks
• Credit Unions
• Financial Institution

Vehicle Type Insights:

• Passenger Cars
• Commercial Vehicles

Regional Insights:

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

Key Players

• Allied Credit
• Macquarie Group
• Hyundai Capital Australia
• Kia Finance
• Genesis
• Hyundai Finance
• Australian Securities and Investments Commission (ASIC)
• NAB
• Plenti Group Limited
• Mahindra & Mahindra Ltd

Recent Development & News

• July 2025: Allied Credit announced acquiring a USD 1.5 billion car finance portfolio from Macquarie Group, enhancing its leadership in the Australian automotive finance sector, with a transition planned for Q4 2025 ensuring uninterrupted customer service.
• June 2025: Hyundai Capital Australia expanded its automotive finance offerings by launching Kia Finance, covering all Hyundai Motor Group brands and introducing tailored financial solutions, including Guaranteed Future Value products, improving vehicle ownership options.
• March 2025: The Australian Securities and Investments Commission (ASIC) announced plans to review motor finance sector compliance, focusing on lenders and brokers in regional and First Nations communities. This move aims to strengthen consumer protection and improve experiences in automotive financing.

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