A Comparative Study Of Auto Finance Lease And Automobile Credit

The China’s auto market is currently in a period of transition from a growth stage to a mature stage.In recent years,the growth rate has been hovering in single digits,and since 2018,there has been a negative growth.In 2019,China’s automobile sales were 25.721 million vehicles,a year-on-year decrease of 8.2%,and still maintained a negative growth trend,with no improvement yet.In sharp contrast to the downturn in the auto market,auto finance has developed rapidly in recent years.From 2014 to 2018,the loan balance of China’s auto finance business increased from more than 320 billion to more than 760 billion,and the scale doubled,of which retail auto finance accounted for more than half,while automobile credit and finance lease were the two main components of retail auto finance.Kind of mode.Auto finance lease is a financing model that separates ownership and use rights.It started in China even earlier than automobile credit.However,from the current development situation,the penetration rate of automobile credit is 35%,while auto finance lease With a penetration rate of less than 5%,it is not as developed as auto-mobile credit.What causes the lagging development of the auto finance lease industry,and what is the difference between the two auto finance models,are topics that need urgent research.It is difficult to find out the reason simply by studying one of the modes,and a comprehensive comparison is needed.This article uses the method of case analysis and takes Y company as the research object.Y company is one of the largest auto finance lease platforms in China.By analyzing the development path and current situation of Y company,it finds out the problems faced by its auto finance lease business,including car financing.Source issues,price issues,license issues,risk control issues,etc.,and use these issues to compare the differences between the two industries of auto finance lease and automobile credit.On this basis,using comparative analysis to compare the respective policy environments,product forms,capital costs,and risk control measures of the two industries,discover the advantages and disadvantages of the two industries,and find out the bottleneck in the development of the finance lease industry.Finding the problem is not the ultimate goal,the goal is to solve the problem.Auto finance in the United States has developed quite mature,especially the finance lease business,with a penetration rate of 37%,which is higher than the global average of 15%.By learning from the development experience of the United States,combined with the actual situation of China’s auto market,finally put forward development suggestions for China’s auto finance lease industry and pointed out the development direction.