Research On Risk Management Of Automobile Finance Leasing In Changsha Chelushi Co.,Ltd.

As a new business model with both functions of “financing” and “melting”,financial leasing has made great contributions to the development of China's current automobile industry and new consumption growth points.As an important part of financial leasing industry,auto financial leasing industry can effectively promote automobile sales,accelerate market development,and improve manufacturers' profit and expand market share for automobile manufacturers in the competitive market environment.However,some problems emerged have affected the development of auto financial leasing industry due to external environmental constraints,such as late start of auto financial leasing model in China,no captibal advantage,imcomplete credit reporting system,imperfect rules and regulations in auto financing industry and low entry barriers,as well as internal issues like extensive management in auto financial leasing industry and especially lack of scientific risk management system.Therefore,the gap of utilization rate on auto financial leasing between China's and developed countries is obvious.For auto financial leasing companies,the most fundamental way to expand consumer groups and increase volume of business is to make full use of auto financing,improve business risk management,and ensure enterprises' sustainable development to make the industy vigorous.This paper studies on Changsha Chelushi Company's auto financial leasing risk management from characteristics of China's auto financial leasing industry based on information asymmetry theory,principal-agent theory and comprehensive risk management theory through field investigation and data analysis.The facts that uneffective prevent of pre-rental adjustments and approvals in financial leasing risk management and credit risk,unconformity of mortgage registration of rented vehicles,out of control of financial leasing vehicles,common phenomenon of aged fail and disposal difficulty of leased property were found in this paper.According to analysis,the reasons to the problems have been proposed,lacking of scientific credit management mechanism,specialized auto financial leasing talents,complete asset management ways,high default cost for lessees and complete risk warning mechanism and risk relief measures.Finally,measures and suggestions for improving automobile financing leasing risk management have been proposed in this paper,including strengthening the prevention of credit risk of auto financial leasing,cultivatingprofessional talents to reduce operational risks,establishing a credit guarantee mechanism for rents,and raising default cost for lessees,completing risk warning mechanism,improving post-rental risk remedy measures,and establishing a full-process risk management system.Conclusion of this paper can also provide reference for decision-making on risk management in related industries.