FYT Auto Finance Company Credit Risk Management Research

China has occupied the top one status of auto production and sales volume over 7 years since 2009.In 2016 the total auto sales volume was 28,028 thousand and passenger cars penetration rate was 38%.The auto market was become to the second largest industry except real estate market.Auto finance has been become one of the most important business of each auto manufactory for sales profit,it can not only bring the new sales volume for auto manufactory,but also contribute more and more profit for auto group.It is also become the important strategy focus of auto company.In current market,the major funding provider were AFC,commercial bank,leasing company and guarantee company.AFC is the top of these vender.AFC financed over 5.8 million vehicles in 2016 and get the 55%growth compare with last year,the growth rate significantly.Currently the core issue of each AFC is how to control and prevent the credit risk of auto financing,it's also the key issue to limit China auto finance industry development.The article is focus on discuss how to enhance the risk management and reduce the credit loss in auto financing operation of AFC.Firstly,the article introduced the situation of domestic auto finance marketing in recent years and discussed the credit management status of AFC and key risk points of wholesale finance and retail finance in risk management,also exposed the main reason of risk points.Secondly,focus on FYT auto finance company as the sample,research on a series of risk issues appearing in the wholesale and retail finance operation and combined with other AFC's experience and relevant research result of domestic and foreign,Base on the whole process of auto finance credit circle,analysis the main reason of credit risk happened and provide the solution of these risk issues.The last part of article was the conclusion of research and auto finance industry lookout.