Research On The Financing Issues Of Asset Securitization Of Auto Finance Companies

China’s auto finance industry has experienced a golden decade,with a market size of 1.8 trillion yuan in 2019.Under the influence of my country’s rapid economic development and changes in consumer perceptions,consumers are increasingly inclined to obtain loans through auto finance companies to purchase cars.As the financial penetration rate continues to increase,auto finance companies are also facing many financing problems in the development process,which are mainly reflected in the narrow financing channels and higher financing costs.It is worth noting that asset securitization is different from the traditional financing model.It has the advantages of broadening financing channels and reducing financing costs.However,there are still certain problems in asset securitization financing,so it is very necessary to conduct in-depth case analysis on the asset securitization financing of domestic auto finance companies.Based on the financing theory and asset securitization related theoretical content,this paper conducts in-depth exploration,introduces the overall development of the domestic auto finance industry,and discusses the main problems in SAIC Finance’s asset securitization financing based on case analysis.First introduce the general situation of SAIC Finance Corporation and the motivations of asset securitization financing,and then conduct a detailed analysis of the transaction structure,asset pool quality,credit enhancement and financing effect during the issuance of the "Rongteng2019 first phase of personal auto loan asset-backed securities".The study found that the asset-backed securities have the advantages of reasonable process design,reliable asset pool quality,high excess spreads and perfect internal credit enhancement measures.At the same time,SAIC Financial’s asset securitization financing mainly has problems such as excessively high concentration of asset pools,no real risk isolation,borrower’s credit risk and prepayment risk,product liquidity problems,and lack of external credit enhancement measures.Finally,this article proposes corresponding improvement suggestions for the problems existing in SAIC Finance’s asset securitization financing.SAIC Finance can take measures to reduce the concentration of asset pools,realize true risk isolation,improve pre-loan review,improve post-loan management,and achieve external credit enhancement;the auto finance industry can build a comprehensive credit evaluation system based on the actual industry,Pay attention to the innovation of auto finance service products,strengthen the training of professional auto finance talents,etc.,so as to promote the positive and healthy development of the industry in the future.At the national policy level,measures can be taken to improve relevant laws and regulations,optimize product trading markets,strengthen financial information disclosure,and actively explore other models to promote the orderly development of asset securitization in my country.