Financing a Used car in UAE, Auto Finance Opportunities in UAE - Ken Research

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Rising UAE Car Finance Penetration and Multiple
Car Finance Products Offered by Banks to Foster
Growth Ken Research
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The report titled UAE Car Finance Market Outlook
to 2021 Rising Car Finance Penetration and
Multiple Car Finance Products Offered by Banks to
Foster Growth which provides an extensive
analysis of car finance market in UAE. The report
covers market size on the basis of credit
disbursed, number of cars financed and new and
used car penetration, segmentation on the basis
of new and used car finance, tenure of loan for
new car and used car and number of new cars
financed in each emirate.
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The report also includes the rules and
regulations implied by the government on the
banks and private finance companies in lending a
car loan, competitive landscape and company
profiles for major players in the car finance
market. The report provides detailed overview on
the general features of car loan in the country
and future outlook projections with future
strategies of the players in the market. The
report facilitate the readers with the
identification and in-depth analysis of the
existing and future trends and issues that impact
the industry and has anticipated growth in the
future depending upon changing industry dynamics
in coming years. The report is useful for
prospective borrowers, car dealers, banks,
private finance companies and other stakeholders
to plan their market centric strategies in
accordance with the ongoing and expected trends
in the future.
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Industry Overview The market has displayed a
steady growth trend until 2015 during the review
period, 2011-2016 at a CAGR of . In 2016, there
had been a fall in the credit disbursed for
passenger and commercial cars as a result of the
weakening macro economic conditions within the
country. The growth exhibited by the market
during the initial five years of the review
period was supported by factors such as
increasing demand for new and used cars, rising
price of the cars, low profit rates or interest
rates and other related factors. Fall in the
credit disbursement observed during 2016 was
resulted out of the falling oil prices,
increasing loan rejection rates, stringent
lending policies adopted by the banks due to the
piling up of non-performing loans and other such
factors. Market Segmentation of UAE Car Finance
Market The UAEs car finance market is segmented
by new and used car finance, by tenure of loan
for new and used car on the basis of number of
cars financed and by emirate on the basis of
number of new cars financed.
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• On the basis of credit disbursed, the new car
  dominated the market with a share of in 2016
  followed by used cars.
• For new cars, the tenure of three years dominated
  the car finance market with a share of on the
  basis of number of new cars financed in 2016. It
  is followed by four years, two years, five years
  and one year tenures.
• Dubai holds the highest share among all other
  emirates of UAE in terms of number of new cars
  financed. It held a share of during 2016. Abu
  Dhabi holds the second position in the market
  followed by Sharjah, Ras Al Khaimah, Umm Al
  Quwain, Al Ain and Fujairah.
• Competitive Landscape
• UAE car finance market comprises of players such
  as banks and private finance companies banks
  being the major player. The market is highly
  fragmented with more than banks and private
  finance companies.

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Banks are spread across the country with more
than 1,000 branches. Strict competition is
existent in the market with over five dozen
financing schemes for both used and new cars
offered by these players. The banks and private
finance companies compete with each other on the
basis of various loan parameters such as interest
rates or profit rates, loan tenure, early
settlement charges, feature packed loans,
additional offers, minimum salary requirement and
various other parameters. Major players in the
market include Emirates NBD, Dubai Islamic Bank,
Mashreq Bank, Al Wifaq Finance, Finance House and
others. Future Potential of UAE Car Finance
Market During the forecast period 2017-2021, the
UAE car finance market is expected to recover
from the fall it has experienced towards the end
of the review period, 2011-2016. It is
anticipated that the car finance market in the
country will grow at a CAGR of during the
forecast period 2017-2021.
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• The recovery is presumed to be at a slow pace due
  to various factors such as low deposit rates
  prevailing in the market and high rate of
  non-performing loans compelling the banks to
  consolidate their existing activities rather
  focusing on growth. However, a growth is expected
  to be observed in the market which will be
  supported by an increased number of bundled
  offerings, new innovative strategies adopted by
  the banks and dealers and other entities.
  Moreover, increasing demand for electric cars
  within the country will enable the development of
  fresh car loans.
• Key Topics Covered in the Report
• UAE Auto Loan Market
• UAE Car Finance Market Size
• UAE Car Financing Market
• UAE Car Finance Market Segmentation
• Top UAE Car Loans Banks
• Government Regulations on UAE Car Finance Market
• Islamic Banks UAE Car Loan Market

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Growth Trend Car Loan UAE UAE Car Loan
Industry Dubai Average Loan Rate UAE Auto Loan
Disbursal NBAD UAE Auto Finance Finance the Car
in UAE Process Competition UAE Car Loan Car
Financing Option in UAE For more coverage click
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dvances/uae-car-finance-market/110143-93.html Rel
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