Problems And Countermeasures Of Individual Auto Consuming Credit In China

This dissertation discusses the problems and impact existing the individual auto consuming credit in China. The outline of this article is: firstly it analyzes the situation and problems in China's individual auto consuming credit; secondly, affecting factors and existing risks in China's individual auto consuming credit are found; thirdly, it takes advantage of foreign successful experience in individual auto consuming credit; finally, some relative proposals in according to national situation in China.This dissertation mainly adopts all kinds of economic methods, such as normative and positive analyses. The main content of the article is as follows:1. It is necessary and feasible to develop individual auto consuming credit in China. Firstly, GDP in China reached $1,268 per capita in 2004, which reflects that our economy has entered a stage of consuming credit. Secondly, the surplus of household saving deposit exceeded 12 trillion RMB in 2004, which shows that the banks have capacity of developing this kind of business with considerable scale of financial assets. Finally, the gross production of cars in China arrived at 2,2614mn in 2004, which makes individual auto consuming credit possible.2.There are several problems existing in China's individual auto consuming credit. Though it has achieved a lot in business scale, through 7-year development since 1998, there are also many problems. (1) the imperfect models of credit and a lack of crediting bodies . According to the data, the auto credit extended by all commercial banks was about 90 percent of all to the end of June in 2004. (2) the poor management of bank credit ,which couldn't meet the needs of business development. (3) abnormal competition for market, which will leads to a high risk. In order to strive for more customers, some banks break the rules during granting individual auto consuming credit, resulting in a high risk because of unhealthy individual credit system.3.There are many factors which affect the development of individual auto consuming credit. These are 3 factors mentioned in this article. (1) the obstacles from consumers. On one hand, the conception of individual auto consuming credit has not been rooted in all residents; on the other...