On The Development Of Auto Finance Companies In Zhejiang Province

Auto finance companies are the main suppliers of auto finance service in developed countries.They are professional in auto finance service with clearly defined service objective and standardized operating process, having the advantage of economy of scale and full capacity to withstand risk. Auto industry has been highly developed in China while auto financing only takes up10%to20%of its total sales, which is led by traditional credit model in commercial banks. Practice shows that traditional commercial banks cannot manage auto financing alone.Borrowing ideas from foreign models as to greatly develop auto finance companies is the way to a developed auto financing and a mature auto industry at home.Being one of the rapidly developed area since Reform and Opening-up Policy in China, Zhejiang has the advantages of balanced development of regional economy, enterprising spirit of local entrepreneurs, accumulation of private capital and industry cluster block economy,etc. By studying theories of auto financing and enterprise strategic management combined with market research and information analysis, this thesis concludes the roles of auto finance companies and related market environment, policies, technical conditions and industrial organization. Taking Company G as an example, this thesis analyzes the current situation of auto finance companies in Zhejiang and discusses development countermeasures, such as seeking environmental support, enhancing cooperation from commercial banks and factories, widening financing channels, developing business of industrial chain investment and and starting up car purchasing savings,etc.