At present, the auto market is in a slump, and dealers' profits have rapidly shrunk. At the same time, they have produced "centrifugal forces". The dealers' system with "4S" as the core has started to shake. Foreign-funded auto finance companies have chosen to provide loans to dealers to help dealers survive the “hard times†and will consolidate their dealership system to play a role in stabilizing the military. Under the guidance and management of manufacturers, dealers sell and maintain the products of the manufacturers; at the same time, manufacturers continue to strengthen their strength through this network, such as assisting dealers to engage in used car business, and will further provide consumption through dealers. Credit. Foreign-funded auto financing companies provide loans for dealers. In fact, they also want their own hands and feet to be stronger. However, I believe that auto finance companies will quickly “return†from consumer dealer loans to consumer credit. Only a strong dealer without a market is meaningless. At present, foreign-funded auto finance companies cannot provide credit to ordinary consumers for the following reasons:
First, the personal credit system has not been established. There are currently no institutions to collect, verify, and update information on the personal borrower’s occupation, income status, repayment ability, credit history, etc., and most of the individual's credit information is kept in the bank or the mortgage institution that purchased the bulk item. Not open to the public.
Second, the price of the new car consumer market is unstable, and the price of the car has dropped significantly. Although the trend of price reductions has slowed down, it has not finally stabilized. If the space for price decline cannot form certain standards and laws, it will seriously undermine consumer confidence in buying loans.
Third, auto finance companies also need to establish nationwide outlets to support their consumer credit business in various regional markets. However, at present, this system has not yet been fully established, and the processes, standards, review and control systems suitable for network operations have not yet been formed.
The author believes that auto finance companies that do consumer credit for “returning†to dealer loans will not immediately provide services to all consumers or consumers of all models. They will first select service targets in high-quality consumer groups. on. These high-quality consumer groups will meet the following criteria: the prices of purchased cars are relatively high, passenger cars are generally selected from medium-sized cars and above; they have stable income, high positions; they are well-educated and have a high degree of credit. Rapidly capturing high-quality customers will accelerate the pace of expansion of auto finance companies in the market, laying a good foundation for manufacturers to compete for the market.