AFIA report confirms motor finance non-bank lenders are vital to keep Australians moving
5 June 2026
A competitive and thriving motor finance non-bank lending market is vital to help hundreds of thousands of consumers and businesses access the vehicles they need for work, family and everyday life, according to the latest report from the Australian Finance Industry Association (AFIA).
In a country with high levels of car ownership compared to global peers, and where access to a car is often essential for employment, education, healthcare and participation in the community, motor finance non-bank lenders (MNBLs) are boosting competition, choice and access to credit.
Lenders helped 507,000 consumer and commercial customers acquire a motor vehicle in 2025 with $24.4 billion in loans, the report shows, while the value of active loans at the end of 2025 stood at $53 billion.
AFIA chief executive officer Diane Tate said AFIA’s new report into the motor finance non-bank lending sector upholds its significant and well-regulated role in Australia’s credit market.
“Non-bank and specialist lenders in the motor vehicle finance market are helping Australians get access to an asset that is not a luxury, but a necessity – indeed, more than nine in ten households own at least one motor vehicle,” Ms Tate said.
“For many Australians, a car is either their second largest purchase after the family home – or their first major one entirely. With cost-of-living pressures and the strain on household and business finances showing no sign of abating, promoting access to these loans has never been more important.
“What’s more, these specialist lenders are serving customers that are often underserved, such as first-time buyers, self-employed Australians, and small business owners that don’t pay themselves a salary because they invest their revenue in business assets.
“The industry data also shows this is a well-regulated and responsible sector, with active support for customers experiencing hardship.
“This report reinforces that a competitive, accessible and responsible motor vehicle finance market is fundamental to helping Australians access motor vehicles – that's where MNBLs are playing their part,” she added.
Other key findings from the report include:
MNBLs finance almost one in ten passenger cars across 1.4 million active accounts.
Around 60% of lending to the consumer segment in the motor vehicle finance market is through MNBLs.
Around 70% of motor vehicle loans originate from dealerships, reflecting the importance of point-of-sale finance for Australian consumers, with around 70% of loans secured against vehicles.
3 out of 4 Australians believe the availability of finance at the point-of-sale is important.
MNBLs are playing their part in the transition to low-emissions transport by making finance available for hybrid and electric vehicles (EVs), demand for which is surging.
View a copy of the AFIA Motor Finance Report here.