China's Automobile Finance Profit Model Research

The automobile industry has existed for more than a hundred years. Behind the history there is an unknown 'hero'—the Automobile Finance Service(AFS). China has witnessed a route of the development of automobile industry away from the development of the automobile finance in the past 50 years, the only result is that the automobile industry is still weak. To lead the way of development of automobile industry, we must study in the automobile finance.There are many questions about the AFS. What does the automobile finance do to stimulate the production and consuming of the automobile? What kind of institutions take part in the AFS? What products and what kind of profit model do they provide? To find out the answers to those questions is important to many things ,such as to understand the functions of automobile finance, to dig out the ways in which we could provide a profit model. This paper proposed along two lines of the research. One is about the institutions which provide the AFS, we will find out the shortage of the institutions by comparison. The other is about the profit model of AFS, based on the analysis of process of every profit model and the comparison of each model. At last, this paper draw a conclusion. First, there is a serious monopolization in the institutions in China. All of the institutions are choked except the business bank. Second, the products provided by the institutions are almost the same, the models are unreasonable, even the members hurt each other in the model. In a word, we didn't found a suitable model. How to found the suitable model is the key to this article. Led by the theories of gap analysis method and value chain, we find out the way to found the suitable profit model to our country. In this article we give out the prototype of the model, we analysed the profit point of each institutions, we give out the ways in which to run the model well.