Improvement Of Auto Finance Lease System In China

With the ongoing growth and perfection of China’s automobile market, Auto Finance Lease has become increasingly prominent as a crucial tool for both enterprise and individual consumers. Even though Auto Finance Lease has made a big splash in the global market, it’s still struggling and experiencing a rough time adjusting in China. The reason is that our system of Auto Finance Lease has a great potential for improvement.This paper demonstrates the principle and the development status of automotive financing lease of China in the following four aspects: legal, accounting, tax and regulatory system, by combining principles of financial leasing and the current status of China’s auto leasing to explore and analysis its institutional issues in-depth. It demonstrates the significant role of financial leasing in China’s automobile market to emphasize the necessity and also to answer the question why China is fully capable of building up a well-established system. In study of the development of financial leasing system in developed countries including veterans of automotive market, we aim to learn sophisticated management experiences to utilize by ourselves. In the end, it points out the prospect and policy recommendations for future China’s auto financial leasing market, indicating that a great regulatory system is not only vital for auto leasing industry itself, but also makes a profound impact on the whole automobile market to maximize consumer’s satisfaction.