Study Of The Development Of Automobile Consumer Credit In China

The automobile is closely related to the modern life, and it is the largest durable consumer goods besides house. Automobile consumption can improve people's life quality by a wide margin, the more important thing is that can accelerate the development of the national economy. The consumer credit of automobile promotes the automobile consumption effectively, it is also the important way that automobile consumed. Through the analysis and comparison of the development of Chinese and foreign automobile consumer credit, this paper summarizes the factors that influence and restrict the development of the Chinese automobile consumer credit at present. Then, the author puts forward the countermeasures and suggestions on this bases, hoping to promote the industry of automobile finance of our country to the limit meagre strength. This paper consists of four parts.Chapter One is the theory preparation of the paper. Firstly, the author expounds the meaning, characteristic and function of the consumer credit. Then, tracing to its source, explains the economics theoretical foundation of the consumer credit, that is, time-favor theory, life-cycle hypothesis and permanent-income theory. Time-favor theory is that there is substitution effect between present consumption and future consumption, and the existence of time value makes people incline to consume now. The common ground of life-cycle hypothesis and permanent-income theory is that consumers arrange their consumption expenditure according to the long and steady income expected in their whole life, and in order to keep the steady consumption, they will apply for the loan to keep the due level of consumption when the present income is insufficient. Then, through the analysis of the automobile and the automobile consumer credit in detail, the author explains the important function that automobile consumer credit has on automobile consumption. Finally, comes to the social economic meaning of developing automobile consumer credit at present in China. (1) Starting the automobile consumer credit can upgrade the structure of consumption in our country. (2) Starting the automobile consumer credit can accelerate the development of the national economy. Firstly, developing automobile consumer credit can drive the development of the auto industry and then the whole national economy. Secondly, it is the effective measure to expand domestic demand now. It spurs the national economy to growth by enlarging the consumption demand. (3) Starting the automobile consumer credit can promote the development of financial institution. It can not only adjust the assets structure of financial institutions, but also drive forward the automobile financial service and bring forth the auto financial service institutions in our country.Chapter Two mainly introduces the development of foreign automobile consumer credit and the representative successful modes. After World War Two, the productivity that developed very quickly made the consumption demand lag behind the production, meanwhile, sufficient bank fund led business of granting the loan to be expanded to the consumer field, then the automobile consumer credit appeared. The automobile consumer credit is the important part of the financial service of automobile. Abroad, the main provider of the automobile consumer credit is the automobile financial service company under the automobile group. General Motors Automobile Credit (GMAC) and Volkswagen Credit (VWC) are the successful models of automobile financial service. The characteristic of GMAC lies in the variety of the credit. It offers different credit products to the customers of different demands. VWC divides the target market into five customer groups: personal users, commercial users, motorcade owners, promoters and workers of VWC, then, offers corresponding service such as bank, lease, insurance etc. to them. The successful experience of foreign automobile consumer credit development is mainly: perfect personal credit system, the complete legal system and ripe financial system.Chapte...