Consumer Automotive Financial Services in Northern and Central Europe

NEW YORK, Oct. 10, 2011 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Consumer Automotive Financial Services in Northern and Central Europe

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Finaccord's report titled Consumer Automotive Financial Services in Northern and Central Europe investigates the market for automotive financial services linked to sales of new and used passenger cars in Northern and Central Europe. In addition to analysing the EUR 77.1 billion market for finance and leasing services, the study also covers ancillary automotive financial services markets including creditor insurance, motor insurance, road assistance, extended warranties, pre-paid service contracts and GAP insurance. The revenues generated from high margin ancillary products, which Finaccord quantifies for the first time in any published study, are crucial to enhancing the profits of a variety of market participants including dealers, manufacturers and independent finance providers. The report draws on a survey of 535 leading car dealerships in ten countries in Northern and Central Europe, Austria, the Czech Republic, Denmark, Finland, Germany, Hungary, Norway, Poland, Sweden and Switzerland, as well as an analysis of the approach to consumer automotive financial services of leading manufacturer groups typically representing between 30 and 40 automotive brands, in the same countries. The PartnerBASE™ database that accompanies the report details each of the marketing initiatives for consumer automotive financial services traced by Finaccord for both dealers and manufacturers. Together, the report and database will provide you with the definitive guide to current and future opportunities in consumer automotive financial services in Northern and Central Europe. Key features of this report include: - coverage of the six distinct sectors within consumer automotive financial services, namely finance / leasing, creditor insurance, motor insurance, road assistance, extended warranties, pre-paid service contracts and GAP insurance plus top level findings for other niche insurance markets, including tyre insurance; - for the seven major products, provision of hitherto unpublished market size and segmentation data for each of these markets generated from Finaccord's proprietary European Automotive Financial Services Model; - clear analysis of the market for consumer finance and leasing services related to new and used car sales by distribution channel, differentiating between the point of sale and direct lenders; - presentation of unique data from the survey of dealerships illustrating average customer take-up rates for consumer automotive financial services at the point of sale in each country; - identification of the partners used for consumer automotive financial services by both dealerships and manufacturers, or their local importers, with contextual commentary concerning key competitors.

TABLE OF CONTENTS

0.0 EXECUTIVE SUMMARY ... 1

The credit crisis and recession have shaken the world of automotive financial services ... 1

The value of the finance and leasing market fell despite a short boom in 2009... .. 1

...as the poor performance of the German market in 2010 pulled down the total of the region.. 2

Point-of-sale finance suffered more in comparison to direct lending... 2

... although it proved resilient in Denmark and Norway 3

In most countries the number of finance providers used is lower than in 2007 .. 3

Revenues from other financial services are proportionately highest in the Czech Republic and Sweden 4

The success of extended warranties and pre-paid service contracts differs greatly within the region ... 5

1.0 INTRODUCTION 6

What is this report about? 6

The focus of the report is on financial services related to the sale of passenger cars to individuals .. 6

Rationale ... 6

Financial services provision is crucial to the profitability of automotive entities… ... 6

… and extends to a range of insurance, warranty and assistance concepts… .. 6

… although published information on these markets remains at a premium .. 7

Methodology . 7

Dealer survey 7

Manufacturer survey . 9

Market data . 10

Computation of market data is based on a complex set of assumptions and variables… ... 10

Definitions ... 11

Finance and leasing products .. 11

Insurance, warranty and assistance products . 11

Captives and non-captives ... 12

Abbreviations .. 12

PartnerBASE™ .. 13

Finaccord 13

2.0 REGIONAL OVERVIEW .. 15

Introduction . 15

Passenger vehicle data . 16

The region's passenger car parc is growing at an average annual rate of 2.1% .. 16

Hungary experienced the sharpest drop in new car sales between 2006 and 2010 17

Combined sales of used cars grew in six out the ten countries between 2006 and 2010 18

The Czech Republic registered the most rapid increase of used car sales .. 18

Volkswagen is the leading manufacturer group in nine out of ten markets... 19

... with the top five groups accounting for more than 60% of sales across the region .. 19

Finance and leasing ... 20

Market size and growth ... 20

Germany's market is the region's largest by far in terms of overall credit agreements… . 20

…as well as when measured by the number of point-of-sale finance and leasing contracts ... 20

… and it accounts for over 50% of the region's total market worth EUR 77.11 billion in value terms .. 23

Private car finance for new cars peaked in 2009 with a market value of EUR 92.7 billion ... 25

Cash-only sales generally outperformed point-of-sale finance and direct lending 26

The boom of 2009 in point-of-sale finance for new passenger cars distorted a general downward trend ... 26

Direct lending for used cars increased slightly for the region as a whole .. 26

Between 2006 and 2010, the value of private car finance and leasing fell at an annual average rate of 6.1% ... 28

For the whole region, point-of-sale finance for new cars is still worth more than that of direct lending... . 28

…while the value of gross advances and assets leased in used car finance peaked in 2007 . 28

Survey results . 30

Provision of finance and leasing services is fundamental to the profitability of dealerships . 30

Dealers are most likely to work with a high number of finance providers in Finland and the Czech Republic 31

Over six years, the average number of finance providers used by dealers has increased in two countries ... 32

Captive finance providers exert the greatest control over dealerships in Germany… .. 33

… while their influence is very low in Finland . 33

Average customer take-up rates of point-of-sale finance or leasing for used cars are highest in Sweden . 35

Dealerships in Poland have improved their effectiveness as intermediaries 36

Financial leasing makes up more than a half of finance contracts in two countries.. 38

A clear majority of manufacturer brands possess their own finance and leasing schemes in nine countries . 40

Creditor insurance .. 41

Market size .. 41

The importance of creditor insurance differs dramatically from country to country ... 41

Survey results . 42

Dealers in Germany and the Czech Republic are most likely to offer loan-related insurance.. 42

Sweden achieves the highest cross-selling rates among customers taking out finance contracts... ... 43

... although higher dealer provision rates support overall take-up rates for new cars in Germany and Austria ... 44

Schemes for creditor insurance are sometimes organised on an indirect basis ... 46

Motor insurance .. 47

Market size .. 47

Manufacturer-branded motor insurance generates revenue of more than EUR 200 million in five countries... .. 47

... with the influence of the automotive trade being greatest in Norway 48

Survey results . 49

Over 90% of dealers interviewed offer motor insurance in six out of the ten territories 49

On average, Czech dealerships liaise with over four underwriters each for motor insurance .. 50

Adherence to non-captive motor insurance propositions is most prevalent in Hungary and Switzerland ... 51

Average take-up rates for new cars for the region as a whole exceed 50% . 53

Overall take-up rates for used cars are highest in Hungary, Norway, Poland and Sweden . 54

Enthusiasm for branded or endorsed motor insurance is high in nine of the ten countries investigated . 56

Road assistance . 57

Market size .. 57

Germany is the region's largest market for manufacturer-branded and dealer-intermediated road assistance .. 57

Survey results . 58

The average dealer provision rate is close to 80% across the region ... 58

Dealers in Poland typically collaborate with more than two providers of road assistance services . 59

Where offered, Finnish dealerships focus on offering the services of captive providers only .. 60

Automatic packaging of road assistance with new car sales is the norm in most countries... .. 62

... pushing overall take-up rates in Hungary and Norway in particular .. 63

Road assistance is increasingly a standard offering in the automotive trade 65

Extended warranties .. 66

Market size .. 66

The combined market value of Germany, Austria and Switzerland is over EUR 1 billion 66

Survey results . 67

On average, more than 60% of dealers in the region are active in extended warranty sales .. 67

The average number of providers used is highest in Sweden ... 68

Dealerships stick to manufacturer or importer extended warranty programs in most countries ... 69

Take-up rates are especially high in Germany, Switzerland and Norway . 71

Overall take-up rates are quite low in Denmark and Finland . 72

It is very common for manufacturers to provide extended warranties in Germany, Hungary and Austria ... 74

Pre-paid service / maintenance contracts ... 75

Market size .. 75

In three out of the ten markets the development of the product is still at a very early stage 75

Survey results . 76

On average, more than half of dealers in the region are active in pre-paid service sales 76

Dealerships offering these contracts in Finland typically work with more than one provider 77

In Norway, this service is usually provided by non-captive providers 78

Average take-up rates for pre-paid service contracts are especially high in Switzerland... .. 80

... while in overall terms they are also relatively high in Sweden ... 81

An average of more than 40% of manufacturers in the region have launched pre-paid service contracts .. 82

GAP insurance ... 83

Market size .. 83

In five out of the ten countries there is a market for GAP insurance on a stand-alone basis ... 83

Survey results . 84

More than half of dealers in three countries are active in GAP insurance sales ... 84

Dealerships offering GAP insurance tend to work with only one provider. 85

Non-captive providers of GAP insurance predominate in two out of the five countries where it is offered .. 86

Average acquisition rates for GAP insurance for new passenger cars exceed 20% in Germany... 88

...while overall take-up rates for used cars remain limited across the region 89

In two countries it has become relatively common for manufacturer brands to market GAP insurance .. 91

3.0 AUSTRIA . 92

Introduction . 92

Passenger vehicle data . 93

New car sales in Austria grew smoothly between 2006 and 2010 93

Volkswagen remains the largest manufacturing group in the Austrian market . 95

Market size for consumer automotive financial services 96

Finance and leasing - market size and growth ... 96

Direct lenders have increased their share of the automotive finance market 96

... while the value of point-of-sale finance for used cars has declined ... 97

Automotive finance for private customers in Austria is split between three different types of contract 99

Automotive insurance, warranty and assistance markets by size, 2010 . 100

Methodology 100

Austria has a thriving market for various automotive financial services... ... 100

... including extended warranties... 101

Six financial products are offered by more than 80% of dealers . 103

Dealers rarely work with more than one provider for niche products .. 104

Take-up rates of extended warranties are higher for used cars than for new cars . 105

Competitor dynamics: dealer partnerships ... 107

Finance / leasing: Two providers account for more than half of all non-captive partnerships 107

Creditor insurance: nearly all dealers in Austria make this product available . 108

Motor insurance: three insurers compete for almost half of all partnerships ... 109

Road assistance: captive providers dominate this product segment .. 110

Extended warranties: nearly all dealers offer this product 111

Pre-paid service contracts: a clear majority of dealers relies on captive providers . 112

GAP insurance: a substantial minority of Austrian dealers make this product available 113

Competitor dynamics: manufacturer brand partnerships . 114

Manufacturer brands are often involved in the marketing of extended warranties and service contracts . 114

Finance / leasing: about half of all manufacturers make this product available on a captive basis 116

Creditor insurance: Cardif and Swiss Life compete for the Austrian market ... 118

Motor insurance: Garanta is established as the provider with the highest number of partnerships ... 119

Road assistance: the ÖAMTC accounts for about half of all weighted partnerships .. 121

Extended warranties: CarGarantie accounts for more than a third of all partnerships ... 123

Pre-paid service contracts: internal provision is the most common operating model . 124

GAP insurance: more than a third of manufacturers weighted by car sales offer the product ... 125

4.0 CZECH REPUBLIC .. 126

Introduction ... 126 CONSUMER AUTOMOTIVE FINANCIAL SERVICES IN NORTHERN AND CENTRAL EUROPE © FINACCORD (01/2011) IV

Passenger vehicle data ... 127

New car sales in the Czech Republic peaked in 2008... .. 127

... while used car sales were at a historical high in 2010 .. 127

The dominance of the Volkswagen Group is not as strong as in the past .. 129

Market size for consumer automotive financial services .. 130

Finance and leasing - market size and growth . 130

Direct lending for new cars has seen a strong increase since 2006... 130

... while the value of point-of-sale finance for new cars is still more significant than for used cars . 131

Leasing is the preferred option for passenger car finance in the Czech Republic .. 133

Automotive insurance, warranty and assistance markets by size, 2010 . 134

Methodology 134

Motor insurance accounts for the bulk of premiums intermediated through dealers... ... 134

... with premium income for new cars being higher than for used cars ... 135

Automotive dealer survey .. 137

Provision rates for three financial services are especially high in the Czech Republic ... 137

Czech dealers work with multiple providers for motor insurance and finance and leasing contracts 138

It is very common for buyers of new cars to take out motor insurance through dealers . 139

Competitor dynamics: dealer partnerships ... 141

Finance / leasing: Six providers account for more than 80% of non-captive partnerships . 141

Creditor insurance: finance providers not dealers arrange this product .. 142

Motor insurance (one year / long-term cover): two insurers account for almost 50% of non-captive ties .. 143

Short-term motor insurance: this product is less frequently offered than long-term cover .. 144

Road assistance: two assistance providers lay claim to more than 50% of non-captive partnerships .. 145

Extended warranties: four providers compete in a small non-captive market . 146

Pre-paid service contracts: captive schemes predominate.. 147

GAP insurance: QBE is the market leader measured by number of partners 148

Competitor dynamics: manufacturer brand partnerships . 149

Five products are offered by more than 80% of manufacturer brands in the Czech Republic ... 149

Finance / leasing: UniCredit has the second highest share of weighted partnerships ... 151

Creditor insurance: Cardif has a dominant position among those brands with direct ties .. 153

Motor insurance: it is common to work with several underwriters or to offer insurance through indirect ties. 154

Road assistance: Europ Assistance has made a major entry into the Czech market 155

Extended warranties: CarGarantie has established partnerships with several high-selling manufacturers .. 157

Pre-paid service contracts: only a minority of brands currently make the service available ... 158

GAP insurance: several manufacturer brands in the Czech Republic are offering GAP cover.. 159

5.0 DENMARK 160

Introduction ... 160

Passenger vehicle data ... 161

Consumers in Denmark have a good reason to prefer used to new cars... 161

...while fleet and business sales kept on growing even during the recession . 161

PSA Peugeot Citroën has become the market leader in Denmark . 163

Market size for consumer automotive financial services .. 164

Finance and leasing - market size and growth . 164

The volume of point-of-sale finance increased between 2006 and 2010... . 164

... while it is evenly balanced between loans for new and used cars ... 165

Only a minority of automotive finance contracts are attributable to financial or operational leasing .. 167

Automotive insurance, warranty and assistance markets by size, 2010 . 168

Methodology 168

Motor insurance is by far the most important insurance product intermediated by dealers in Denmark ... 168

... with premiums for used cars being higher than for new cars due to the large underlying used car market .. 169

Automotive dealer survey .. 171

Pre-paid service contracts are among the products most frequently provided by Danish dealers 171

Dealers commonly work with more than two providers for finance and leasing, and for motor insurance 172

Long-term motor insurance is the product most frequently taken out on a stand-alone basis ... 173Competitor dynamics: dealer partnerships ... 175

Finance / leasing: a large number of providers in Denmark compete for non-captive partnerships .. 175

Creditor insurance: more than a fifth of Danish dealers make this product available . 176

Motor insurance (one year / long-term cover): over 33% of dealers use both a captive and a non-captive .. 177

Short-term motor insurance: If Forsikring lays claim to the highest share of partnerships with dealers. 178

Road assistance: two assistance providers compete for non-captive ties .. 179

Extended warranties: more than a third of Danish dealers make this product available 180

Pre-paid service contracts: dealers' own schemes predominate 181

Competitor dynamics: manufacturer brand partnerships . 182

Dealers are more likely to offer short-term motor insurance than manufacturers ... 182

Finance / leasing: Nordania and Nordea have established themselves as market leaders by weighted ties ... 184

Creditor insurance: Fiat is working with an external partner to provide loan payment cover .. 186

Motor insurance (one year / long-term): If Forsikring can lay claim to a large number of partnerships.. 187

Short-term motor insurance: Codan has established itself as the major provider of short-term cover .. 189

Road assistance: BMW and MINI use more than one assistance provider 190

Extended warranties: only a minority of manufacturer brands currently make extended warranties available . 191

Pre-paid service contracts: more than half of brands in Norway offer maintenance contracts... 192

GAP insurance: stand-alone GAP insurance is not well-developed in Denmark ... 193

6.0 FINLAND ... 194

Introduction ... 194

Passenger vehicle data ... 195

New car sales in 2010 have recovered slightly from their 2009 nadir... .. 195

... while used car sales held up much better during the recession .. 195

Volkswagen, Toyota and Ford are the leading manufacturer groups in Finland 197

Market size for consumer automotive financial services .. 198

Finance and leasing - market size and growth . 198

The market for passenger car finance has been broadly stable in recent years. 198

... while point-of-sale lending for used cars is more significant than for new cars ... 199

Finnish customers taking out automotive finance contracts prefer loans over leasing ... 201

Automotive insurance, warranty and assistance markets by size, 2010 . 202

Methodology 202

The market for ancillary insurance, warranty and assistance products is comparatively small.. 202

... with pre-paid service contracts currently being the most popular product ... 203

Automotive dealer survey .. 205

Provision rates of automotive financial services are generally lower than in most other European countries ... 205

Dealers in Finland usually work with more than three providers for finance and leasing ... 206

Close to half of Finnish car buyers take out their finance and leasing contracts at the point of sale .. 207

Competitor dynamics: dealer partnerships ... 208

Finance / leasing: Nordea and OP Pohjola lay claim to the highest shares of partnerships .. 208

Creditor insurance: a substantial minority of dealers offer this product ... 209

Road assistance: captive providers predominate. 210

Extended warranties: two providers account for all non-captive partnerships 211

Pre-paid service contracts: dealers' own schemes predominate 212

Competitor dynamics: manufacturer brand partnerships . 213

Pre-paid service contracts are the product most commonly offered by manufacturers in Finland . 213

Finance / leasing: only a minority of manufacturers make finance and leasing available .. 215

Creditor insurance: most brands do not make payment protection cover available ... 216

Motor insurance: If Vakuutus and Tapiola have struck marketing partnerships with brands in Finland. 217

Road assistance: Autoliitto and Falck compete for market leadership in Finland ... 218

Extended warranties: only a minority of manufacturers offer this product ... 219

Pre-paid service contracts: two out of three brands have arranged the provision of maintenance contracts 220

7.0 GERMANY 221

Introduction ... 221

Passenger vehicle data ... 222

New car sales in 2010 have dropped after being boosted in 2009 by a scrappage scheme . 222

The car scrappage scheme boosted sales for manufacturers of smaller cars 224

Market size for consumer automotive financial services .. 225

Finance and leasing - market size and growth . 225

The declining car market in 2010 hit point-of-sale finance more than direct lenders... ... 225

... while 2009 was an exceptional year for new car finance . 226

A clear majority of German customers still prefer 'classic' car finance over balloon loans . 228

Automotive insurance, warranty and assistance markets by size, 2010 . 229

Methodology 229

The value of dealer-intermediated motor insurance is by far the highest in the region... 229

... while extended warranties are also a significant form of revenue in the automotive trade in Germany... . 230

... and the market for pre-paid service contracts benefits from high provision rates... 230

... whereas GAP cover is often sold in conjunction with finance and leasing contracts .. 231

Automotive dealer survey .. 233

Extended warranties are offered by 100% of dealers surveyed .. 233

Many German dealers prefer to work with only one provider when offering financial services .. 234

Used car buyers in Germany are often interested in taking out extended warranties 235

Competitor dynamics: dealer partnerships ... 237

Finance / leasing: Santander and BDK have established themselves as key non-captive providers 237

Creditor insurance is an almost universal product in the German car trade ... 238

Motor insurance: the majority of dealers offer manufacturer-branded cover .. 239

Road assistance: the market for non-captive providers is relatively limited 240

Extended warranties: CarGarantie and Real Garant currently account for the bulk of the market 241

Pre-paid service contracts: captive schemes predominate.. 242

GAP insurance: most dealers offer the product through manufacturer-branded provision 243

Tyre insurance: captive provision predominates .. 244

Competitor dynamics: manufacturer brand partnerships . 245

Manufacturer brands in Germany are very active in the marketing of automotive financial services 246

Finance / leasing: manufacturer brands commonly provide car finance on a captive basis in Germany .. 248

Creditor insurance: Cardif and Swiss Life compete for being the highest ranked partner .. 250

Motor insurance: one insurer accounts for more than half of the weighted share of partnerships . 251

Road assistance: manufacturer brands usually work with one external assistance provider . 252

Extended warranties: about a quarter of manufacturer brands use more than one provider . 253

Pre-paid service contracts: most brands prefer to work without external partners . 254

GAP insurance: several well-known underwriters compete for partnerships with manufacturers in Germany . 255

Tyre insurance: one major manufacturing group offers tyre insurance in Germany ... 256

8.0 HUNGARY 257

Introduction ... 257

Passenger vehicle data ... 258

The market for new cars collapsed between 2007 and 2010... ... 258

...as economic conditions forced consumers to opt for used cars or to forgo car purchases altogether ... 258

Suzuki is the single best-selling brand in Hungary ... 260

Market size for consumer automotive financial services .. 261

Finance and leasing - market size and growth . 261

The plunge in Hungarian car sales has had a major impact on point-of-sale passenger car finance... . 261

... while the value of finance for used cars is now higher than for new cars 262

About one in three of automotive finance customers in Hungary take out a financial leasing contract . 264

Automotive insurance, warranty and assistance markets by size, 2010 . 265

Methodology 265

Some financial products offered by dealers currently generate only small revenue ... 265

... with motor insurance for used cars now being by far the greatest generator of revenue ... 266

Automotive dealer survey .. 268

Five automotive financial services achieve provision rates of at least 60% 268

Dealers usually work with multiple providers when offering finance and leasing contracts or motor insurance 269

Motor insurance is by far the most popular stand-alone product offered by dealers in Hungary ... 270

Competitor dynamics: dealer partnerships ... 271

Finance / leasing: CIB and Budapest Bank lay claim to the highest shares of non-captive partnerships .. 271

Creditor insurance: almost two in three dealers offer creditor insurance . 272

Motor insurance: four insurers account for 75% of non-captive ties 273

Road assistance: Europ Assistance and Mondial Assistance are the top non-captive competitors .. 274

Extended warranties: MAPFRE is the market leader in terms of non-captive partnerships ... 275

Pre-paid service contracts: captive schemes predominate.. 276

GAP insurance: QBE's Carlife Direct has established itself as the leading provider .. 277

Competitor dynamics: manufacturer brand partnerships . 278

Three products are offered by more than 90% of manufacturer brands . 278

Finance / leasing: Porsche Bank, Merkantil and MKB together account for more than half of all partnerships 280

Creditor insurance: a variety of operating models is employed to make cover available ... 282

Motor insurance: captive brokers play a major role in the market for manufacturer-branded insurance ... 283

Road assistance: nearly all manufacturer brands offer this product 285

Extended warranties: BMW, Chevrolet, Mazda, Opel and Volvo all use the same provider .. 287

Pre-paid service contracts: it is extremely common for automobile brands to offer maintenance contracts . 288

GAP insurance: several manufacturer brands are involved in the marketing of GAP cover .. 289

9.0 NORWAY .. 290

Introduction ... 290

Passenger vehicle data ... 291

The new car market in Norway bounced back strongly after the downturn... . 291

... while growth in the large market for used cars remained more modest .. 291

Volkswagen, Toyota and Ford together account for nearly half the market 293

Market size for consumer automotive financial services .. 294

Finance and leasing - market size and growth . 294

Point-of-sale finance has increased its share of the automotive finance market... . 294

... with the share of loans for new and used cars being relatively balanced 295

Automotive finance for private customers in Norway is split between three different types of contract . 297

Automotive insurance, warranty and assistance markets by size, 2010 . 298

Methodology 298

Additional financial products only generate a limited amount of revenue in the Norwegian automotive trade... ... 298

...although road assistance is boosted by high take-up rates .. 299

Automotive dealer survey .. 301

Five automotive financial services are offered by at least half of all dealers surveyed ... 301

Dealers usually prefer to work with more than one partner for long-term motor insurance 302

Long-term motor insurance is more popular than limited cover at the point-of-sale ... 303

Competitor dynamics: dealer partnerships ... 305

Finance / leasing: DnB NOR and Santander are competing for the largest number of non-captive ties ... 305

Creditor insurance: half of Norwegian dealers make this product available 306

Motor insurance (one year / long-term cover): four insurers account for more than 75% of partnerships . 307

Short-term motor insurance: Gjensidige has established itself as the leading provider in this segment ... 308

Road assistance: Falck Assistance dominates the market for non-captive partnerships ... 309

Extended warranties: non-captive providers account for all activity 310

Pre-paid service contracts: dealers tend to provide this service themselves .. 311

Competitor dynamics: manufacturer brand partnerships . 312

The provision of motor insurance by manufacturer brands is almost universal .. 312

Finance / leasing: four providers account for over 70% of weighted partnerships in Norway 314

Creditor insurance: most relationships exist on an indirect basis 316

Motor insurance: only low-selling brands do not offer the product in Norway . 317

Road assistance: Viking is the dominant provider of road assistance in Norway ... 319

Extended warranties: only a small minority of Norwegian manufacturers make the product available . 321

Pre-paid service contracts: those offering maintenance contracts work on an internal basis 322

10.0 POLAND . 323

Introduction ... 323

Passenger vehicle data ... 324

Poland escaped the global recession... 324

...as reflected in the growing volume of new and used car sales since 2006 . 324

Volkswagen, Fiat and Toyota are the leading manufacturer groups in Poland... 326

Market size for consumer automotive financial services .. 327

Finance and leasing - market size and growth . 327

Direct lenders in Poland have increased their share of the automotive finance market... .. 327

... while the value of point-of-sale finance for used cars has declined . 328

Hire purchase is a popular form of car finance in Poland 330

Automotive insurance, warranty and assistance markets by size, 2010 . 331

Methodology 331

Revenues from motor insurance dominate the Polish market... .. 331

... while dealer-intermediated GAP insurance has become an established feature of the Polish market .. 332

Automotive dealer survey .. 334

Almost all dealers offer finance and leasing contracts and long-term motor insurance .. 334

Dealers often have multiple providers for finance and leasing, motor insurance and road assistance .. 335

Take-up rates for motor insurance and road assistance are especially high .. 336

Competitor dynamics: dealer partnerships ... 338

Finance / leasing: A large number of providers compete for non-captive partnerships .. 338

Creditor insurance: a minority of dealers offer this product .. 339

Motor insurance: PZU has the highest number of non-captive ties . 340

Road assistance: a majority of dealers rely on non-captive providers 341

Extended warranties: most dealers work with captive providers . 342

Pre-paid service contracts: dealers offering maintenance contracts sell manufacturer-branded products 343

GAP insurance: the non-captive market is split between four major providers ... 344

Competitor dynamics: manufacturer brand partnerships . 345

A comparatively high proportion of manufacturer brands in Poland offers GAP insurance ... 345

Finance / leasing: ties with captive providers are the most common operating model ... 347

Creditor insurance: behind Cardif four insurers compete closely for second place 349

Motor insurance: Allianz has established partnerships with a large number of manufacturers .. 350

Road assistance: Mondial Assistance and Europ Assistance compete closely for the highest number of ties . 351

Extended warranties: 16 manufacturer brands have partnerships with external providers 353

Pre-paid service contracts: only a minority of manufacturer brands make maintenance contracts available 355

GAP insurance: Wagas and Cardif command the largest shares of the market 356

11.0 SWEDEN . 357

Introduction ... 357

Passenger vehicle data ... 358

New car sales in 2010 have bounced back from the low level recorded in 2009... 358

...with fleet sales being the main driver of the recovery 358

Market shares in the Swedish new car market have undergone profound changes over the last few years 360

Market size for consumer automotive financial services .. 361

Finance and leasing - market size and growth . 361

The Swedish market for automotive finance experienced a small decline between 2006 and 2010. 361

...while taking out loans from direct lenders remains the preferred option .. 362

Automotive finance for private customers in Sweden is split between three different types of contract 364

Automotive insurance, warranty and assistance markets by size, 2010 . 365

Methodology 365

Motor insurance accounts for three quarters of the total .. 365

... while GAP insurance is not available on a stand-alone basis .. 366

Automotive dealer survey .. 368

Four financial services are offered by at least 80% of dealers in Sweden .. 368

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