Research On Personal Auto Credit Business

Many problem and financial risks have taken on since 1998, the start of our personal auto credit business. Now our auto credit business is in an initial stage. However, we should not abolish it, because auto credit business plays an important role in making automobile industry popular. Further more; making automobile industry popular is an important gap of improving our economic development. In fact, even though auto credit is considered as a kind of high risk business, if the risk of auto credit can be searched and controlled better, we can also get a high benefit from it.This paper synthesized illustrated the source of auto credit and what western country's personal auto credit business could teach us. This paper also analyzed risks of personal auto credit business and current status of our auto credit business, concluded that the critical obstacle is lack of personal credit system in China. This paper pointed out the reasonable subject of personal auto credit business market should be auto financial companies instead of banks. At the end of this paper, in the basic of our personal auto credit business market facts, it proposed the steps of setting up our credit system, suggesting that every market main part be in cooperation, to achieve the result of both-victory. This paper discussed some strategies of our banks to compete with foreign investment auto financial companies also.