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In August 2004 from China’s former auto commerce companies – GMAC-SAIC Automotive Finance Company since the establishment of China’s auto commerce companies possess entered the fifth year.
Up to now, China’s total foreign-owned or-controlled motor vehicle finance companies 9. Volkswagen, Toyota, Fiat, Ford, PSA Peugeot Citroen, Daimler – Chrysler, Volvo, Nissan, etc. China’s automobile test water financial markets. First established by the local enterprises Chery Automobile Emblem Bank Financial Inc. also received the approval of China Banking Regulatory Commission, the forthcoming opening of the year.
By the end of December 2007, had currently opened eight auto investment businesses amounted to 28.498 billion yuan of assets, when a total of 16.47 million yuan earnings, non-performing lend rate of 0.26 per hundred, commerce profitability for the first time.
Car commerce financing theory has been almost totally dependent onto the beyond, bank loans, into a businesswoman corporation car commerce companies occupy approximately 40% of the total. More meaningfully, a number of automotive commerce companies are trying towards probe the corporation theory within rope with national moods and products, car credit corporation getting better.
Was the most money-making economic services In detail, the auto investment enterprise was the most money-making auto commerce a “big cake.” U.S. auto investment business vehicle lend enterprise has been more than vehicle manufacturers themselves, to become the most significant vehicle manufacturers source of profits.
At present, 41 countries in the world 38.2% of the users is the loan to buy a car, especially in the car increasingly meager profits today, automobile finance companies to provide profits to total profits Automotive Group 1 / 3.
GMAC-SAIC Automotive Finance Company Christian Weidemann said: “By 2025, China’s auto market will reach 15 million, automotive financial services industry will also have the market capacity of 525 billion yuan.” In order to determine the present situation, this process may will be faster. Automotive financial market is another attraction: according to international practice, even if the whole production profits fell 3% to 5%, the auto finance business to maintain profit margins around 30%.
Industry professionals said that if the vehicle can hold up with buyer borrowing, the advancement of sales will be “doubled” in the future, the household automobile market in buyer borrowing rather large. At present, the well liked worldwide automotive constructor to set up economic businesses, the junction trader, to supply customers with vehicle sales and after-sale service. Abroad, automobile utilisation borrowings 70-80% supplied by the auto investment companies.
Statistics appear that auto commerce companies loosely profitable bottom rope is the ratio of loans and sales of many than than 25%, but already, the greatest domestic car commerce companies are difficult towards accomplish 15%. At show, everybody foreign-car dearth of funds of financial institutions hundreds of billions of dollars, with annual sales of the car alone 5% of the following.
As a outcome of increasing interest rates, the squeezing of bank borrowings, vehicle investment businesses to step-by-step lift the right phrases, “In the past, mostly by bank borrowings, auto investment businesses are now expanding over time, coming to about 40%.” State Council Development Research Center Ministry of Economic Affairs commerce investigator said commonplace money.
, Chairman of Volkswagen Finance Corporation has said: “China is about 10% of vehicle buy loans. We wish that in 10 years this number will boost to 40% ~ 50%.” President of Toyota Motor Finance Corporation, said Gu Ping泽嘉will try to emblem the Beijing locality Toyota vehicle lend rate from the present 2% to 10%. SAIC trials
In China, SAIC Automotive Finance earliest contacts as well as a profit first, no doubt become the industry sample.
GMAC-SAIC Automotive Finance Company, told reporters the relevant person in charge, the company set up to achieve a profit after two years. As of 2007, the company credit assets in excess of 12.0 billion, expansion to 146 cities nationwide, covering all brands Shanghai GM, when the cumulative net profit of 85.21 million yuan. Retail credit business grew 125 percent year-on-year, operating more than 1.3 billion U.S. dollars of assets, the retail loan contracts signed by more than 79,000 copies.
At the same time, GMAC-SAIC Automotive Finance Company’s credit asset securitization has also been significant progress in the project, SAIC of GMAC-SAIC Automotive Finance Company has also received equity investment returns.
In 2008, GMAC-SAIC Automotive Finance Company of the foreign shareholders of General Motors quagmire deep financial services company, faced with increasing rates of loan delinquency, the number of vehicles to recover more and more problems, December 24, 2008, the U.S. Federal Reserve Board to the financial services company General Motors, a Christmas gift, the approval of the lending institutions, the automotive industry for the bank holding company in transition.
SAIC shall rob financial companies towards buy foreign cars hold shares of financial companies? “China has not a deep experience of financial companies, the funds may be able towards buy it, but it is not a nice moment towards need towards think clearly.” Xinhua Motors vice president of selling solutions Xuehong Lang told the “al investors.”
Can see that Shanghai Automotive commerce companies are also striding up the industry of automotive financial facilities, a radical transformation of the old-fashioned theory of buyer’s credit, the introduction of model-based motorcycle seller financing buyer’s credit corporation and personal car credit corporation, within September 2007, Rongwei Brand within Beijing onto the former production rope, activated off auto commerce corporation, as soon as which the general social, Ssangyong brand car also has financial facilities on-line for the complete SAIC products towards play an effective role within the financial support.
Than the bank has the potential to Automotive Finance Corporation has the advantage of being attached to the automobile enterprise groups, the enterprise groups and determined the natural leader of the automotive finance companies and commercial banks, compared with the special advantages in three areas: on the deeper understanding of brand vehicles; distribution of the brand depth understanding of business and effective control; disposal to facilitate the recycling of vehicles.
This natural benefit condemned automobile investment businesses in the Chinese market a gigantic room for future development.
Car across a bank credit, they loosely need towards provide accounts of the purchaser of a car, actual estate information card at the equivalent moment normally necessary towards do towards housing or mortgage securities, contracts and wage certain prices related procedures.
However, as long as the car auto finance companies have steady jobs and homes, a stable source of income and repayment ability, good personal credit, you can apply for car loans, the lender’s account of the location, the availability of housing, etc. There is no limit. But equally obvious shortcomings, car finance loan car loan interest rates higher than banks.
“The existing model, consumers need to automobile dealers to finance car loans.” A dealer said that if the dealer is not due or intentionally concealed information of consumers, resulting in damage to motor vehicle finance companies, which may be loss of marketing rights.
Abroad, automotive investment businesses are only lending its emblem of engine vehicles. GM, Ford Automotive Finance Corporation through the support, in order that buyers can be traded second-hand vehicle for a new car; the second vehicle will be adept to relish a more favorable rate. The commerce accepts as factual that this form can cultivate the commitment of buyers will help to enhance the general sales.
On the whole automobile industry chain downstream, covering the whole plant, logistics companies, automobile finance companies, dealers, used car sales, automobile and other consumer links. OEMs attractive brands and products, the automotive financial services play a decisive role. But the banks do not have the element. “Specialized automobile finance a high degree of risk, should encourage a more professional background of the car finance company car finance business.” Chongqing Automotive Business Association, said the Secretary-General Chou.
From an commerce to forecast the future main heading of vehicle finance: a couple of years subsequent, the vehicle manufacturers will be adept to set up their own economic stage vehicle, vehicle lend methods substantially simplified. Automobile investment business will have a entire subversion in China for some decades of annals the notion of customary bank borrowings to purchase vehicles, vehicle purchasers will relish the unprecedented reduced interest rate borrowings and other amenities, and will step-by-step restore the bank borrowings vehicle borrowings has become the mainstream way of the future. Banks will be more in financing, fee and town, and so the borrowing business card enterprise, and expert auto investment businesses pattern a complementary business.
Policy as a fulcrum
In accordance with the automobile industry in 2009 to promote the revitalization of the planning schedule, will be introduced in April, “the promotion of motor vehicle policies and measures of financial development,” but as of press time, this policy has been introduced.
At present, the household auto investment businesses financing charges are too high, slender scope of enterprise, decrease of communal borrowing scheme and other difficulties, the future examines ahead to “measures” to have more improvements, and then leveraging leverage automotive buyer borrowing, expanded buyer auto market demand. Lang Xuehong said that the household auto investment businesses due to principle limits, somewhat high financing charges, in such situation, the enterprise has a certain degree of difficulty.
Under the new “motor vehicle finance company management”, in addition to the use of company capital, the auto finance companies can only borrow from banks or, where the absorption of outside shareholders and the Group wholly-owned subsidiary in China and three on the territory of the shareholders (including ) more than time deposits. Once the larger business, the auto finance companies can only competitors to the same bank borrowings.
If the borrower to the bank, 1-year lending rate of more than 5% not less than, the interest rate is apparently too high; for example through the move and sale of automobile lend receivables enterprise to lift capital, as a outcome of automobile borrowing risk itself is actually operational, this financing charges in the feasibility and the reality of a bigger problem.
At show, the three principal car commerce companies involve personal consumer loans, wholesale loans (specifically the procurement of vehicles onto seller loans, is different from the general corporate loans) and commerce leases. However, engine insurance, mortgages and else facilities not within the scope of the operation.
Lang Xuehong in it, restrictions on business scope, business scale will not be able to do a lot of enterprises will have an impact on profitability. Automobile finance company’s business mainly concentrated in the current consumer credit risk, making auto finance company’s risk management means a single, resulting in motor vehicle finance companies doing business in a substantial increase in credit when the threshold had to limit its marketing efforts.
Xuehong Lang pointed out that automobile dealers within 2003 within order towards assistance consumers get access towards clients and even consumer credit, ruled towards an increase of non-performing loans, banks were constrained towards quit automobile credit. In fact, spiteful pretence is alone a few of loans for the specified consumer as a outcome of the commercial situation repayment troubles, need towards analyse the vehicle within moment towards retrieve, the biggest auto commerce corporate towards dampen the extent of defeats method. In fact, the most meaningful thing is, when lending, bolster the measurement of consumer’s repayment ability.
Car investment business is mostly relying on its own assemblage, notes, collation and investigation of customer’s borrowing document, borrowing enquiry and ranking will not be adept to advance the effectiveness of risk avoidance, but furthermore effectively an boost of charges, expanded operational dangers, to some span constraints or even the auto investment businesses all through the automotive market.
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