A Study On Automobile Finance

As one kind of financial deepening pattern, the automobile finance is advantageous to both automobile production and consumption, and is helpful in reducing the cost of automobile transaction. Today automobile industry has already become a pillar industry. So automobile finance also showes a great power to our country's economy growth.But the automobile financial company also faces many questions in our country at present, for instance the national automobile financial company develop insufficient, the good faith system is not perfect, the related policy is not well made,the environment system waits for further improvement and so on. At the same time, it also has some question in theory aspect,such as which one is the best,the commercial bank or the specialized automobile financial company?Whether automobile financial company,which has matured and advanced executive and risk management experience,suits for our country national condition?Regarding discussion in these correlation questions,it will be beneficial to our country automobile credit and even the automobile industry development without doubt,it will also further to enrich our finance and credit theory system certainly.This article altogether is divided into four parts.Related concept limits. Studies in the predecessor,this article made limits to the system, the automobile finance, the automobile financial company separately. The system is a series of rules to standard and instruct enterprise and consumer behavior, these rules's executive can reduce the transaction expense. The automobile finance defines as financial services which provided to consumer and dealer by financial institution,including rents to dealer's stock financing and to consumer's credit and so on. The automobile financial company is non- bank finance enterprise loaned to automobile buyer and dealer in china.Domestic and foreign automobiles finance development vicissitude. The general automobile established GMAC in 1919,from then on the overseas automobile finance has passed through 90 years nearly, the development relative consummation,it presented the service content extended,the service way networking, the credit property negotiable securitized. The author thought the overseas automobile finance development was result from automobile manufacturer's spontaneous initiative,organization and implementation product in order to respond a profit opportunity, its nature belongs to inductiveness system vicissitude. Our country automobile finance started in 1990s,moreover the government limited its development at the beginning,first automobile finance was not permitted in bank ,later loosed, when the foreign automobile financial company entered, government also made all sorts of limits. The author thought our country automobile finance development is different, it should belong to compulsory system vicissitude. Automobile credit institution comparison. Compared to the banks, the automobile financial company is close to original company,has the technical superiority, has broad service contentand has the advanced experience of automobile finance.But the bank also has the superiority in fund, service network,payment settlement method and customer information which the automobile financial company is unable to compare and so on. It can be said that, the automobile financial company and the bank respectively have its strong and short points. The author thought the two should strengthen the cooperation between them. Inview of our country national condition, the bank has a major role at present.with the development of automobile financial company,it can use the related resource as a main body. The automobile finance has the scale effect, some small automobile manufacture company should cooperate with the bank In the automobile manufacture domain, the national automobile's situation is quite difficult, but in the automobile finance, the nationality car company also has big opportunity, they should hold this opportunity, speed up their development in the automobile finance.Automobile finance system arrangement. First, establish individual credit system. The automobile finance service is one kind of credit transaction in some degree. The credit transaction particularity lies in it is transforms the present property rights into creditor's rights which will be taken back in the future, this creditor's rights have the non-determinism. This non-determinism originates from the asymmetrical information. In order to eliminate it in the credit transaction process, We must make a series of system arrangement. The credit system establishment and execution is advantageous for information transmission between the transaction main body, standard and restraint transaction behavior of economic subject is advantageous for the formation of stable marketing order, the optimization of credit environment as well as the economy of transaction expense. The author believed our country credit system establishment should from four aspects: Personally credit collecting system, individual credit appraising system, individual credit rewards and punishment mechanism, individual bankrupt system and so on. Second,perfect risk pass system. The automobile finance has high risk,its operation relies on the lending money whether can be paid back. If loaner breaks contract,the automobile finance organization will bankrupt finally.To develop automobile finance healthy and continuously ,How passes the risk?The author carried on the discussion from the credit guarantee, the credit insurance and the property securitize. The credit guarantee and the credit insurance belongs to the forwards control, the property securitize belongs to the afterwards control. Third, cultivate rents and the second-hand vehicle market. The automobile finance is not merely the installment payment, it has rich connotation. Looked from overseas experience, automobile finance rent is one kind of universal and profitable pattern. This article introduced financing rent characteristic,and made comparison with the installment payment. Second-hand vehicle market is huge in our country, so it provided a broad stage to automobile finance rent. Fourth, the government should play a big role in the development of automobile finance. The government is policy maker, its action can affect the entire automobile industry as well as automobile finance institution. The author thought the government should withdraw from the microscopic domain and gives the instruction in macroscopic. The government should function in the cultivation consume consciousness, the consummation correlation law,strengthen supervising and managing, optimization market environment and so on.