Auto finance, in a nutshell, is the loan to the main plant. The loan to the dealer is also called the stock financing. The loan to the consumer is the retail loan. In particular, in recent years, almost all research reports from investment banks, consulting companies, and industry associations have stated that auto finance is a one trillion yuan deep sea. Auto finance has been developed in Europe and America for more than one hundred years. Its position in personal finance business is second only to real estate finance. However, automobile consumption in China has not yet used large-scale financial leverage. The 80/90 who are more willing to accept loans to buy cars has gradually become the main consumer, and the market potential is undoubtedly huge. So its market demand is great. From the data point of view, the current penetration rate of China's auto consumer credit is only about 16%, compared with 60% in most developed countries. It can be seen that China's car loan penetration rate is still at a low level, there is still much room for improvement. This is also the great potential of China's auto credit market, which attracts all types of companies to get involved. From car companies, banks, insurance companies to professional auto finance companies, etc., they all want to be separated from the big market of auto finance. A cup of soup. However, there are still certain constraints in the development of auto finance. First of all, the development of China's auto industry itself is not sufficient, many and small manufacturers, lack of key technologies and so on have led to a certain gap between the auto industry and the international level, which to a large extent limit the development of China's auto finance. Secondly, China’s auto finance market is still dominated by banks, and auto finance companies that should have occupied a larger share of the market tend to be weaker. This single-subject situation will hinder the healthy competition of financial institutions, and banks cannot fully satisfy themselves. The needs of consumers in all aspects, thus making China's auto financial industry can not be fully developed. In addition, the lack of a regulatory system and the imperfection of the credit system have to some extent constrained the development of China's auto finance industry. With regard to the future of auto finance, commercial banks, auto finance companies, and other third-party financial institutions (consumer finance companies, P2P, small loans, guarantees, etc.) may form a tripartite situation. One of the major reasons for the current low penetration rate of the Chinese auto financial market is the shortage of supply. The non-performing loan ratio of 0.54% means that the current industry is less tolerant of risks, that is, most of the poorly credited customers are rejected in loan approval. With the continuous improvement of the penetration rate, it is the “untrustworthy†customers who will inevitably invite other third-party financial institutions to enter the market. Therefore, in the future, the country should give strong support to the auto finance industry, and guide it properly from the aspect of policy norms, and gradually push forward the construction of China's personal credit system, promote the perfection of the industry supervision system, and even give preferential policies to auto finance companies to meet China’s auto finance. Rapidly growing market demand in the industry. Brake Pads For Chana,Chana Brake Pads,Chana Car Brake Disc,Chana Service Brake Ningxia Rossking Auto , https://www.rosskingauto.com
