Analysis Of The Development Of The Car Installment Plan By Credit Cards For The Commercial Bank

With the development of the automobile market and the financial market car installment plan by credit cards is popular with auto retail finance business instead of the traditional automobile loan. Car installment plan by credit cards is the agreement between the cardholder, auto dealer and the commercial bank. Consumer pays part of the money when they buy the car then repays the rest money to the commercial bank through car installment plan by credit cards. This kind of business can help the consumers buy car in advance. This kind of business can help the auto dealer enlarge their sales volume. This kind of business can help the commercial bank get large amount of intermediate business income. In a word car installment plan by credit cards is a win-Win-win strategy.Car-consuming credit business can’t keep up with the development speed of the automobile industry in China. There are few consumers buying car through installment plan by credit cards, automobile loan and auto finance company loan. While car-consuming credit business especially installment plan by credit cards in western countries has excellent market performance and mature business model. Although the installment plans by credit cards in the domestic market develops fast. There are some disadvantages in this business. It is necessary to research and analysis the current situation and feature of the installment plan by credit cards. We can use the operation experience of the foreign auto financing company for reference. All the above plays a significant role in the development process of the installment plans by credit cards.In this passage we first hackle the relative theory and literature. In contrast with the traditional automobile loan and the auto finance company loan, we emphasize the characteristic of the car installment plan by credit cards. Data coming from one commercial bank can illustrate the present situation of car installment plan by credit cards in Jiangsu province. At last we put forward some policy suggestions from three aspects including consumers, products and area respectively in order to improve this business.