Research On The Influencing Factors Of Auto Loan Default In China

Decades of vigorous development in the automobile industry has also witnessed the rapid development of the automobile credit business.Since the 1920s,the development history of foreign automobile credit has been more than a hundred years,and now it has a certain scale and very mature development.The participants of automobile credit are diverse,the scope of service is relatively wide,the level of related business specialization has reached a certain height,and the measures,means and the construction of laws and regulations linked to it have been relatively sound and perfect,which fully guarantees the smooth development of foreign automobile credit,which is also conducive to the control of automobile credit.At the same time,with the support of many foreign consumer groups,automobile credit has developed into the most important source of profit in the automobile industry of western developed countries.In the nineties of the last century,the automobile credit initially emerged in our country.At present,it is in the initial period of development.It is inevitable to encounter various problems,mainly in the following aspects:1.The main participants are relatively single.2.The consumption capacity is poor.3.The hidden risks are large.4.The supporting measures related to automobile credit are not perfect enough.Compared with developed countries,There is still a certain gap.The singleness of the participants in the automobile industry and the high hidden risks limit the development of automobile credit in China,which is also the bottleneck of development at this stage.With the continuous improvement of GDP and people’s income,the quality of life and consumption level of Chinese people are also gradually improving.In the future,the situation that ordinary people use family cars as a means of transportation will gradually increase and be updated.Therefore,China’s automobile credit loans also have broad prospects for development.This article first introduces the specific research on auto credit at home and abroad,and combines with the relevant literature on the risk of breach of contract and auto finance risk at home and abroad,summarizes the research direction and results of default risk in auto finance loan at this stage.Secondly,the concepts of auto finance environment and individual defaut in auto loan are introduced theoretically.Thirdly,from the perspective of internal and external environment,the fundamental reasons for loan default in domestic and foreign auto industry are explained,and on this basis,how to avoid this risk in auto finance industry is expounded;Next,nine variables are selected from the loan contract,including the borrower’s income,the borrower’s age,the education obtained by the borrower,the ratio of the amount of repayment to the monthly income of each family,the number of loans,the loan-to-value ratio,the term of use of loans,the interest rate generated by loans and the value of vehicles.The influencing factors of default in DF auto finance loans are studied.The results show that the loan period,loan amount,monthly repayment,loan interest rate,customer age are positively correlated with the default rate of auto finance loans,while family income,the vehicle value,customer education,loan-to-value ratio are negatively correlated with the default rate of auto finance loans;Finally,on this basis,the author gives some countermeasures,such as perfecting the system and restraint mechanism of personal auto loans,enhancing the awareness of risk monitoring of auto loans,improving the guarantee system of auto loans and frequent information exchange among peers,and improving the legislative construction at the national level to prevent vicious competition among lending institutions.