Commercial Vehicle Credit Business Mode Of FAW Auto Finance Ltd.

The automobile financial service has hundred years history of development inforeign countries, and due to the late development of the Chinese automobileindustry, automobile financial service began in1990s. In the past twenty years, theautomobile financial market gradually moved towards a diversified market,commercial banks, auto finance companies and other financial institutions havebecome the players in the market, and auto finance business come into the growthstage of the orderly competition.FAW Auto Finance Co., Ltd. is a subsidiary of FAW Group, and its predecessorwasFAW Finance Limited, established in1988. FAW Finance Limited began to carryout commercial vehicle creditbusinessin2002, earlier than most of other financialinstitutions. Although FAW Auto Finance Co., Ltd. explored a set of relativelymolding commercial vehicle creditbusiness modes, but it still has the followingproblems. First, the business management is extensive, and lack of businesscontinuity and strategic support. Second, the information system is imperfect, andmost of the work is not operated through information system. Third, there’s lack ofscientific assessment of the credit standard, and too much reliance on experts’experience. Forth, it’s lack of effective management to the distribution dealers andcustomers, and risk management needs to be improved.In response to these problems, this paper puts forward a variety of Solutions.By combing operations, strengthen key aspects of the control and improve businessmanagement refinement. By improving the model of risk limits in the evaluation of credit, provide a scientific basis and reduce the expert experience. By creatingafter-credit-rating system and dealer’s management, strengthen the control of theauto dealers and end customers to improve their risk management. Theseimprovements will not only promote the FAW Auto Finance Ltd. commercial vehiclebusiness development, but also provide referential significance to other financialinstitutions.Through research on these issues, combined current situation of commercialpassenger service in FAW Auto Finance Limited, comes the following conclusions:the perfect information system helps to operate and control risk; the improvedmodeling tools help to provide a scientific basis for the ratings, and reduce humandisturbance factors; the long-term strategy helps to make a virtuous cycle of theoperation.