Automotive Consumer Finance Research

The huge demand for capital is recognized as main characteristics of auto industry for many reasons to sustain manufacture and sales. The utilization of finance to boost production and sales is the incentive for auto manufactures to chase for financial service. The earliest auto consumer finance—auto consumer credit originated from United States in 1907. Following booming demand for automotives in America, Germany and Japan, the auto finance increasingly expanded. The main business of auto finance is identified as auto consumer credit and auto leasing, plus refunding and entrusting purchasing and so on. Auto consumer finance and auto industry are interacting on each other and you may find the most sophisticated service nowadays in United States, Germany and Japan. In those countries, the auto consumer finance features on easy process, innovative products, improved credit evaluating system, robust legislation and regulation and specialized finance agency etc.Along with the revolution, the auto financial services company invested by auto manufacturer plays major role counting on its exclusive advantage of industry-insider and massive volume. This paper illuminates in different scope of the functionality of domestic and especially foreign auto financial services company in a bid to further disclose the fast movement of auto financial services company and its growing tendency towards multipleness and industrialization..On basis of wide experiences learnt from mature markets such as America, Japan and Germany, this paper is to stress on study of development and current status of Chinese auto consumer finance. In particular, it illustrates the characteristics of domestic economy and auto industry in different phases, and puts forward reasons constraining further development of auto consumer finance. Based on which the paper brings forward suggestions and conditions to boost auto consumer finance in China: bolster versatile auto finance services, encourage to develope auto financial services company, establish social credit system, and improve legislation and regulations.In brief, heavily looking at global auto consumer finance—auto consumer credit and auto leaseing and other successful operational experiences in developed countries, this paper puts forward detailed suggestions to boost China auto consumer finance combining with analysis of domestic current status.