Motor finance non-bank lenders are playing a critical role in helping Australians access the vehicles they need, according to a new report released by the Australian Finance Industry Association (AFIA).
The report found motor finance non-bank lenders (MNBLs) provided $24.4 billion in loans during 2025, helping more than 507,000 consumer and commercial customers purchase vehicles. At the end of the year, the total value of active loans stood at $53 billion.
AFIA Chief Executive Officer Diane Tate said the findings underline the importance of a competitive and well-regulated non-bank lending sector in a country where vehicle ownership is essential for work, education, healthcare and daily life.
“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,” Tate said.
She noted that many Australians continue to face cost-of-living pressures, making access to vehicle finance increasingly important. The report also found specialist lenders often serve customers who may struggle to secure finance through traditional channels, including first-time buyers, self-employed Australians and small business owners.
According to the report, MNBLs finance almost one in every 10 passenger vehicles in Australia through approximately 1.4 million active accounts. The sector also accounts for around 60 per cent of consumer lending within the motor vehicle finance market.
Dealerships remain a key part of the finance ecosystem, with around 70 per cent of motor vehicle loans originating at the point of sale. The report found three out of four Australians believe access to finance through dealerships is important when purchasing a vehicle.
AFIA said the sector is also supporting Australia’s transition to lower-emission transport, with non-bank lenders increasingly providing finance solutions for hybrid and electric vehicles as demand grows.
Tate said the report demonstrates that motor finance non-bank lenders continue to provide responsible lending, competition and customer support while helping Australians stay mobile.
“This report reinforces that a competitive, accessible and responsible motor vehicle finance market is fundamental to helping Australians access motor vehicles,” she said.