Research On The Development Of Automobile Financial Service In China

The auto industry is the new highlight of the national economy in the recent years.In the auto industry, financial services play important roles in the optimization ofindustry structures, shortening the ventures' cash flow periods, and facilitatingconsumers buying cars. And nowadays as the auto industry develops quickly, autofinancial services have already been one indispensable segment of it.But the development of auto financial services in China is not optimistic. Comparedwith the developed countries, it still has long way to go. Our country has made thepromise that the domestic auto financial services would be opened up after the entry ofWTO. In such circumstances, how would we face the challenge of foreign auto financialcompanies? And how can the national auto financial services sector be developedproperly? These are the main questions that would be discussed in this report.This article attempts to discuss the development model of the automobile financialservice in our country, and probe into reference function to our newly automobilefinancial service from developing experience of the foreign automobile finance service.There are five chapters in this article. Chapter one is an introduction. We explainmainly why we shall develop automobile financial service in our country in the part, thatis to say what important meanings development automobile financial service has.Chapter two is a summary about automobile financial service. We state about therelevant concepts of the automobile financial service, explain the origin formation thatthe automobile financial service produces and develops and its cause of function anddevelopment trend.The next two chapters are the most important parts of this article. We analysis thedevelopment model of the domestic and international automobile financial service,including the organization and development model of automobile financial service, the advantage and inferior position of the domestic and international automobile financialservice and the enlightenment from the development model of foreign automobilefinancial service. Chapter five probe into the existing problem and improvementsuggestion on the automobile financial service in our country. Firstly, specializedinstitutions of automobile finance service should be set up and the restricts on theestablishment of branches of specialized institutions providing automobile financeservices should be removed; Secondly, the corresponding laws and regulations shouldbe made to ensure it develops rapidly and smoothly; Thirdly, the article specially pointsout that risk management should be reinforced when we accelerate the development ofour nation's automobile finance service; at last, the article makes some prospects fordeveloping our nation's Automobile finance service.