Explore The Development Of Auto Dealers And Financing Channels

At present, China's auto industry is booming, the depot are all active in the expansion of its market share, depots and distributors have been authorized by the professional development of this wave of boom, and face fierce brand or different brands of the same competition, also face the marginal profit integration of operations and external pressure. Auto dealers on the current situation, the fierce market competition, resulting in the survival of the fittest of the situation, a number of competing automobile manufacturers, with a certain scale up to dozens of vendors, which is also only a few major foreign automobile manufacturers in sharp contrast.While the dealers continued to expand the operation scale, but the data show that bank support for dealers from 2004 to 2009 there is not much change. Is currently part of the dealer is in the group stage of development-oriented, capital injected into the important issue at this stage, the traditional sector, auto dealers are more frequently used sources of financing, including the original shareholders to inject capital, shareholder loans, financial institutions, loans and car finance company loans and so on. Reality, the U.S. auto dealers group, one of the three UAG (United Auto Group), Europe's largest car dealership groups in the Austrian Porsche Holding Corporation, Toyota Tsusho, Newbridge and other foreign investment, joint-stock cooperative has adopted, or the form of private equity funds to become China's auto dealers the other financing channels. As the private equity funds have the technical expertise and business management experience, in addition to funding for businesses, but also can be brought into different international perspective, but its high degree of financial leverage operation, the pursuit of capital gains of the business ideas, let many of the entrepreneurial management team fear of them. Another Step on the market is currently the distributor of a large group one of the ways to raise the money after the listing of the multiplier, will effectively increase the size of funds to expand the number of dealers.In this paper, first of all to study and summarized in the industrial chain of automobile sales industry, followed by operations on China's auto dealers in the status quo, and to use comparative law to compare the similarities and differences of various funding channels and the burden of costs, including replenishment of the original shareholders, bank loans, private equity funds and so on, finally, through case studies, analysis of case then the financing program adopted by the Company and its significance by the supervisor.