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Last updated: 27 Sep, 2014  

Consumer Automotive Financial Services in Luxembourg

PR Newswire | 06 Dec, 2013
MUMBAI, India: 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. (

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:



What is this report about?

    The focus of the report is on financial services related to the sale of passenger cars to individuals
    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
    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
    Finance and leasing products
    Insurance, warranty and assistance products
    Operating models
    Tied and non-tied providers



    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
    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

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:

Related Reports:

    Consumer Automotive Financial Services in Finland
    Global and China Automotive Finance Industry Report, 2013
    Automotive Finance and Leasing for Consumers in Emerging Global Markets
    Motor Finance 2013 - Market Report

Related Category:

    Consumer Automotive
    Motor Insurance
    Automotive Leasing

About Bharat Book Bureau

Bharat Book Bureau is the leading market research information aggregator that provides market research reports, industry analysis, company profiles, business reports, country reports, newsletters and online databases. Our clients include Corporate, Consulting firms, and Academic Institutions and Government departments across the globe. Bharat Book Bureau provides over a million reports from more than 400 publishers around the globe. The market research reports we provide, help global companies examine the different markets before setting up a business or expanding into different countries across the world. They give a complete perspective on the current market scenario, trends, segments and future outlook.

Contact us:

Bharat Book Bureau
USA/Canada - 1-866-279-8368 (Toll free)
India: +91-22-27810772, 27810773

SOURCE Bharat Book Bureau

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