Research On Models Of SQ Auto Finance Company Profitability

A lot of scholars have investigated the profit model of automobile finance in the past ten years.Chinese automobile industry got a rapid growth and development in the last past 10 years.,and the corresponding auto financing industry has also been developing.For the profit model of auto finance,it also has a mature and stable scheme.However,the study of traditional profit model,even the profit model of auto finance,is often based on the perspective of profitability or strategic perspective to evaluate the development prospects of a company.The difference between this analysis is that the object of analysis is a single,individual and newly established auto financing company.Because different companies have their own characteristics,it is very difficult for us to analyze and evaluate the automobile industry in our country in general,but for the particular individually established new company,its profit model is worth learning and research.Besides,this paper will focus on the company's credit risk control point of view,to evaluate the company's profit model.Risk control and management has always been a sector that the financial industry needs to focus on.It is also one of the core factor of the financial industry.For auto financing companies,whether a company can effectively prevent risks and control risks determines if the company can carry out business or not in a long-term and stable manner.A good profit model must also be effective in risk management control and prevention.Therefore,evaluating the level of risk control of a company can represent the company's profit model.The risk control of auto financing company mainly aims at the customer and credit risk.Therefore,the risk control referred here mainly emphasizes the customer's credit risk control.The market environment is changing,and financial technology and profit models are also new.For auto finance companies,I believe that the operation of auto finance is essentially different from the traditional financial industry,and its ultimate goal is to conduct business in order to achieve the ultimate profit of its parent company.Because of the analysis results of this article,the auto company's own book profit level cannot be compared with other financial industries,it seems that the profit model is no longer the traditional interest income through the auto loan itself to obtain the company's final profit goal.Therefore,the analysis logic of this article is based on the common profit model analysis method,firstly the company's formal profit model and profit level,and then in-depth analysis of its ultimate core purpose,and found that the company's interest income is not its ultimate purpose.Its real purpose is to open a profit-making channel for the group through the business of auto finance companies,and ultimately to obtain continuous profits from every aspect of the channel,at different levels and from different aspects.