Research On Auto Finance Risk Control Of Luxury Auto Brands

Auto finance has already developed about17years in China mainland since the end oflast century, after a difficult preliminary development period with several banks in China,auto finance developed progressively. At present the auto finance has matured with a varietyof loan products offered by more than35local banks and auto finance companies. At thesame time auto industry of China has achieved outstanding developments, and China hasbecome the No.1new car sales market in the word for the last3years, but all theseachievements, all thanks to the supports of auto finance.However, as the rapid development of auto finance market in recent years, manyfinancial institutions set their feet in this market, this leads negative competitions, resultshasty credit examine, operating process with loopholes, auto finance by Credit Card with nomortgage registration and other confused high-risk products. The financial risk did notbe reduced, but increased slowly. Especially since2010, the Central Bank raised loaninterest rates and the deposit reserve rate, this leads to a reduction of money supply and lackof market liquidity, and increased the default risk of auto finance. Therefore, it is exactly thetime to have a further research of auto finance risk control combining with the actualsituations in recent years.This dissertation base on the analysis of the most successful three German Auto BrandsMercedes-Benz, BMW and Audi in China mainland, combining the concept and featuresof auto finance risk, distinguish the risk classification of auto finance, elaborated thenecessity of risk control and causes of risks. Through comparing with other banks and autofinancial companies, summarized and analyzed the advantages and risks of BBAAuto Finance Company, Finally I gave some constructive suggestions to banks andauto finance company on financial risk management combining the latestmarket situation. Among them, the conclusions about risk control measures are based on theBBA Auto Finance Company loan default rate of2012and2013and real non-performingloan cases. Additionally I emphasized the innovation of new personal auto loan moderelying on the mobile Internet and the necessity of carrying out immovable propertychecking up. This dissertation will be a good direction to banks and auto financialcompanies for further development.