The Research On The Effect Of Consumption Credit On China’s Automobile Demand

As an important part of consumer credit, automobile consumption credit has played an important role in Europe and other developed countries in promoting the popularity of the family car for nearly one hundred years. Our auto loan started late, auto consumer credit outstanding has increased considerably. But compared with developed countries, the development is still in low level. At the same time, in recent years China’s automobile industry has been in the rapid development, car sales set a world record as the world’s second largest country of car ownership for two consecutive years. But on the other hand, the rapid development of automobile consumption also brought energy security, environmental pollution, traffic management and other problems to the country. Theoretically, automobile consumption credit can transform future income into real purchasing power and play the role of stimulating consumption. So in our particular economic background, what role does automobile consumption credit play in the development of automobile consumption, whether it plays the role and how to develop it become one problem worthy of study. This paper analyzes the effect of automobile consumption credit on the automobile consumption in our country by sorting out the relevant theories and combining with the current status of automobile consumption and consumer credit. This paper draws the conclusion that automobile consumption credit has but little effect on automobile demand. Then this paper analyzes the causes of limited role of automobile consumption credit and draws policy implications. The whole paper is divided into four parts:The first part is an introduction and describes the research background, significance and research literatures as well as the research framework.The second part is the theoretical basis for automotive consumer credit and consumer demand. Firstly the paper defines the concept of consumption, consumer credit, automotive consumption and automobile consumption credit. Secondly, this paper focuses on the impact of consumer demand and consumer credit related theories, at the same time how the automobile consumption credit mechanism affects consumer demand is briefly described.The third part combs and concludes the development status of automobile consumption credit in the country. This paper builds the consumption function model and uses the least square regression method to find that the automobile consumption credit has significant effect on automobile consumption. But compared with the previous study abroad, the automobile consumption credit has no significant effect on automobile consumption.The fourth part analyzes the specific reason of the limited role of automobile consumption credit from the three aspects of the supply side, the demand side and the market environment and finally draws policy implications.