The Development Of The U.s. Auto Finance And Its Effect On China's Commercial Banks

Auto finance can improve the efficiency of auto production, service and capital utilization. Currently there is only less than 20% of Chinese car buyers are buying on credit comparing with over 70% in those developed market. Since China has promised to open up its auto finance field in the agreement of WTO, once foreign institutions enter China's enormous market, China's infant Auto finance industry will face fierce competition. So it is urgent to develop our own auto finance business to our commercial banks. The study on auto finance development will extend great importance to the development of China auto industry and China banking system.There are four chapters in this article: Chapter first introduces auto finance's conception and main functions, discusses the necessity and feasibility of developing auto finance in China.In the second chapter, I review auto finance development and introduce the automobile finance institution in America. Those include automobile finance company,Credit Union and trust company. GMAC and FMCC are those of most successful financial organs。In ChapterⅢ, I introduce and summarize the history of development and the experience of the auto financing company in America. And make a profound analysis of it from five aspects: the establishment, the financing arrangement, the source of the profits, the extending of the business scope, the business and financing risk controlling, etc. Installment, Smart buy, Smart lese and the transfer of the auto installment contract and re-finance are American finance service mode of automobile.In ChapterⅣ, by explaining and researching the related policies, for example the manage measure of automobile finance company, I make a deep study about the automobile finance operation in recent years by our...