The Empirical Study Of The Default Risk On Individual Loans Of Volkswagen Financial Services Company

In recent years,with the improvement of people’s living standard and ascending consumption consciousness of spending their future money,auto financing has developed rapidly and vigorously.There are now more than a dozen professional auto financing companies in the industry.More and more car buyers choose loans to purchase cars.But compared with the rapid expansion of market scale,China’s auto financing permeability is low.Auto financing has a broad prospect in China,but the maturity of the industry market is not high,and there are many risks and challenges.All auto financing companies are trying to grab the market share,and personal auto loan is the focus of competition.But due to the imperfect default system,relevant laws and regulations lagging behind,weakness of the borrower’s understanding of individual credit,organized loan fraud,etc.,such factors make auto financing companies face great challenges in default risk prevention,risk control,and so on.Therefore,it is of great theoretical and practical significance to study how to control the default risk of personal loan in auto financing companies.This paper analyzes the factors affecting the default of personal loan.Firstly,it briefly describes the problems of personal loan in auto financing based on the research results at home and abroad.Then,in view of the current status and existing problems of personal auto loan business in Volkswagen Finance as well as cases of breach of contract,making use of the business data of Volkswagen Finances as a sample,and applying Logistic Model to analyze the data,it carries out an empirical research on personal auto loan default risk factors.The final results show that loan term,loan interest rate,down payment ratio,marital status,monthly income,unit property,etc.,have a great impact on the default of personal car loan.On account of the theoretical and empirical researches,the author gives suggestions,such as perfecting personal credit system,strengthening the awareness of risk monitoring,establishing post-loan risk warning mechanism,improving the loan guarantee system and enhancing the exchange of information between industries,in order to reduce the default risk of personal loan in auto financing company,stabilize profits and reinforce the prevention and control of personal auto loan default risk.