The Management Of Automobile Consume Credit

The paper intends to give proposals for addressing existing problems, ultimately increase auto consumption and boost national economy through analysis of current Chinese auto consumer credit market status as well as existing problems. 1.Basic status of auto consumer credit market China's auto consumer credit grows through the initial stage when financial companies established by auto-makers were main credit units and the formal starting stage when banks were main credit units. With China's entry of WTO, international auto finance magnates come into China's auto financial market attracted by the great market prospects. In such backgrounds, China's auto consumer credit market will enter into a rapid development phase driven by many factors. In contrary with foreign auto consumer credit market where auto financial companies gain dominance, today the primary operation units in China's market are commercial banks, insurance companies, financial companies, while primary competitors are banks, auto dealers and financial companies established by auto makers. The modes of auto consumer credit in current period are very few, including directly-facing-consumer mode with bank as main lending body, indirectly-facing-consumer mode with dealer and non-bank financial organization as main lending bodies. 2.Necessity and feasibility to develop auto consumer credit market There are following effects coming along with the rapid development of auto consumer credit: auto consumption credit can promote rapid increase of residents'realistic consumption; it can enhance the expansion of industry scale; it can play a role of "multiplier"to boost economic increase; it can strengthen auto companies'competitiveness; it can be helpful to improve China's individual credit system. From the macro-analysis for future auto consumption credit market, it has possessed the following 5 objective conditions to vigorously develop auto consumption credit: development of national economy lays foundation for the development of auto industry; people's consuming capability and tendency directly drive the development of auto industry; improvement of highway provides basic condition for people's consumption on auto; city's development and urban transportation's progress can support the expansion of auto consumption; auto exhaust emission pollution will not curb auto consumption; The upcoming policy improving auto consumption environment will accelerate the upsurge of auto consumption; China's entry of WTO presses auto makers to reduce price, which will give impetus to the rapid growth of auto consumption. Meanwhile the forecast of China's future auto market demand and individual auto market demand also demonstrates that it has a potential market prospect to develop auto consumer credit. It concludes from above analysis: vigorous development of auto consumer credit market will positively promote China's macro-economy increase. Furthermore, it has already possessed solid object conditions and broad market prospect. 3.Factors and Problems to affect auto consumer credit The factors that affect auto consumer credit are studied from three aspects: borrower, lender and external environment. From borrower side, key factors are: consumption cost , vehicle price, lending rate, lending procedure and consumption awareness; from lender side, key factors are: borrowing unit and product service; from external environment side, key factors are: policy & environment and lack of individual credit system. Currently, China's auto consumer credit market has problems in the...