By Tenure of Loan-New Car : The loan tenure selected by the customer depends on factors such as the price of the car , income level of the customer , flexible scheme options and other social factors such as family size and life style of the individual . The maximum tenure allotted for a car loan by both banks and private finance companies is five years for new . It has been observed that , people opting for 3 year loan tenure has accounted for ~% of the new cars financed in 2016 followed by 2 years loan tenure with ~% of the number of new cars financed in 2016 whereas 4 year loan tenure contributed ~%, 1 year loan tenure contributed ~% and 5 Years loan tenure contributed only ~% in the number of car financed in 2016 .
By Tenure of Loan-Used Car : People opting for 2 year loan tenure of used cars has have registered a share of ~% in the number of used cars financed in Indonesia in 2016 . This was followed by 3 year loan tenure with ~% and 1 year loan tenure with ~% share while only ~% of the used cars have been financed for loan tenure of more than 3 years . Shorter tenure is usually chosen due to easier installments and the lesser price of used cars .
By Financial and Non Financial Institutions ( New Car ): Commercial banks and financial institutions have accounted for ~% of the credit disbursed for new car in 2016 . The non financial institutions which include captive and non-captive finance companies have contributed the remaining ~% of the credit disbursed for new car financing in 2016 .
By Financial and Non Financial Institutions ( Used Car ): In the used car segment non financial institutions have accounted for the larger share of ~% of the credit disbursed for used cars in Indonesia in 2016 . Whereas commercial banks contributed the remaining ~% of the credit disbursed in 2016 . Majority customers availing used car loans lie in the low income level group . Used car loans are riskier as the chance of default is higher . Therefore , customers do not prefer going to a commercial banks for such loans due to the stringent regulation
Competitive Landscape
The industry is fragmented and each company caters to its own niche by specializing in several categories such as product financed ( 4W , 2W , HE ) and geographical reach . These companies majorly compete on improving services , expanding distribution network and enhancing customer relationship . The car finance market is dominated by multi finance companies as they offer car loan services to middle class people who form the largest proportion of customers availing car finance . Banks dominate the new car finance market as they are highly regulated and present a reliable source for availing car loans . The major players in the industry are Bank Central Asia ( BCA ), Bank Mandiri , Bank Rakyat Indonesia ( BRI ), Bank Negara Indonesia ( BNI ), CIMB and Bank Danamon Indonesia .
Future Analysis and Projections