Consumer credit, usually refers to the financial institutions for consumer payment to buy consumer durables loans or pay for other expenses. But this research is not only to individual consumers as the loan object, according to the China bank promulgated the "auto loan management approach (pilot)" provisions, the automobile consumption loan borrowers, can be a fixed residence in the territory of Chinese Chinese citizens and enterprise, public institution legal person units; and practical experience at home and abroad in auto sales financing, scope of business is not only the retail financing, namely for consumer installment and mortgage, including wholesale financing, namely the dealer inventory financing. Therefore, this paper discussed the consumer credit, financing problems in the process of selling involves.

Classification according to provide consumer credit, mainly in the following three forms: installment; earmarked loans; non earmarked loans (i.e. such as credit cards, special check loans).

Automobile consumption credit, or auto sales financing, refers to the financial institutions (including commercial banks and Credit Company or financial companies and other non bank financial institutions) to dealers, users to buy the car on sale, when financing (mainly loans). Mainly includes: the dealer inventory financing (wholesale financing) and user installment financing (retail financing).

    Early in the first World War ended, the automobile consumption credit began in the USA appear. At that time, in order to stimulate the sluggish market demand,1919Automobile consumption credit to launch1927Years, America auto market automobile installment sales accounted for total sales60%Above. After the Second World War, the automobile consumption credit business rapidly spread around the world, the developed countries in Europe and America by the number of automobile consumption credit sale car total sales accounted for50%-70%. Start China's auto consumption credit since ninety time metaphase, is still in the initial stage, but with the country to take consumer credit support policy, in recent years the rapid development of business,2000The total domestic automobile consumption credit years has more than110Billion yuan, a year-on-year growth of70%, automobile consumption credit, as the main way in today's international automobile sales business, with Chinese joinWTOLater, the international automobile marketing mode in China rapid promotion, will have a very broad prospects for development.

Analysis of the current situation, China's auto consumption credit

1, the development status of domestic automobile consumption credit

Since the reform and opening up, great changes have taken place in China automobile circulation system, the sale of automotive products have changed from the planned distribution system in the past to the sales market system; after entering ninety age, auto sales channels also began to change, and gradually from the past to electromechanical, domestic trade and goods distribution and other departments, industry of subordinate enterprises as the main change as the automobile production enterprises as the core itself or jointly build a sales company, assisted by the mixed subject other circulation enterprises, solve the car sales enterprises through similar to automobile consumption credit means (mainly marketing) is an important way to the problem of shortage of funds. At the time of construction and marketing of automotive enterprises, production enterprises with new and turnover vehicles as one of investment poetic couplet pin body (and the international experience, in the early days, world auto sales financing development mostly by manufacturers to provide financial support), began a prototype vehicle consumption credit.

1996Years, as China's auto market has entered a cyclical trough, to stimulate market demand, the automobile production enterprises have launched a consumer credit business. Such as: the cooperation with the FAW Group launched the "Jetta" car consumption credit; ICBC SAIC launched "Santana" car loans for personal consumption; Tianjin Branch, ICBC launched the Tianjin branch and Tianjin Automobile Group Auto loan. Although shortly after, the people's Bank of Chinese ordered the suspension of business of automobile consumption loans, but some production is still with the local car market to carry out small-scale automobile sales and payment business, such as Changan company and Beijing north automobile trading market on the "Alto" car installment payment.

1998Years10On the people's Bank of Chinese issued the "automobile consumption credit pilot approach", the bank actively carry out car credit business, business volume increased year by year. According to statistics, only workers, farmers, the construction of four state-owned commercial banks to1999Automobile consumer credit at the end of the year issued to65Billion yuan, support7Million vehicles (mostly cars) sales, accounting for the same period in passenger car sales8%. To2000Years11At the end of the month, a total of automobile consumption credit the bank has more than110Billion, an increase of70%.

1．1The management of the industry, and the current policies and regulations

According to the law, the current law, although there is no detailed specification for consumer credit, but still can clearly stipulates the rights and obligations of consumer credit, debit, credit sales financing to take, can make the credit claims are clear legal guarantee, thereby reducing the risk of bad loans; and for users, the consumer protection laws, so that his legal rights protected to some extent.

Existing automobile consumption credit is closely linked to the law: "the general principles of the civil law" (the legitimacy, lending relationship to solve the problems in the transfer of ownership of auto sales financing), "guarantee law" (provides for cars as the legal basis for the mortgage lender, the creditor has clear legal guarantee), "loan general clauses" (the concrete operation of mortgage loans made clear), "commercial bank law" (provided by the commercial bank's business scope includes loan service, security service, providing a legal basis for the car commercial banks in consumer credit), "economic contract law", "insurance law" etc. legal, laws, to the automobile consumer credit to certain legal support, and constitute the basic laws of automobile consumption credit business framework.

From the1999Year, the people's Bank of Chinese for consumer credit, especially the automobile consumer credit business has promulgated a series of policies and measures, to develop the automobile consumer credit business has a good regulating and guiding role. Mainly includes: "the automobile consumption credit pilot approach", "auto loan management approach", "regarding the development of individual consumption credit guidance", "enterprise financial management approach" etc.. People's Insurance Company of China also for auto consumption credit business to develop a "motor vehicle consumption loan guarantee insurance terms and practice rules", "motor vehicle consumption loan guarantee insurance business management Interim Provisions" and a series of documents, given the domestic automobile consumption credit business to the specific standard and safeguard measures.

1．2The basic situation, domestic automobile consumption credit market

With a very different point of mainstream international automobile consumption credit business is, the automobile consumption credit business in China is mainly composed of the major commercial banks in conjunction with the dealers and auto production enterprises common development, because the fund raising, network construction, risk management and other aspects of the reasons, so that the domestic automobile production enterprises, financial company no intervention in the market (although the ninety time metaphase, sinotruk group finance company of enterprise financial company to carry out the automobile consumption credit business, financing lease form because risk management and other reasons, but not last).

At present, the four major state-owned commercial banks to carry out automobile consumption credit business amount has exceeded110Billion yuan, an average annual growth rate reached70%. The traffic construction bank Chinese maximum, which accounted for the total volume of business43%Left and right; industrial and commercial bank business has been all over the country286A city of China30A brand of car, truck, bus, car models such as the development of consumer credit, consumer credit car business volume accounted for to the28%About. But with China12Financial institutions trillion in total loans, automobile consumption loans accounted for only0.09%For personal loans, and the share is very low, at present individual housing loans accounted for the deduction of personal loans13.3%Sales of cars, insufficient to support12Million, accounting for only the total vehicle sales6%Passenger car sales20%About.

The basic situation of the commercial bank to develop the automobile consumption credit is the main:1Banks with loans, lease financing almost no, unified interest rates stipulated by the people's bank loans, and loans of high quality, late in the6Month only accounted for the loan0.5%.⑵Loans, personal loans accounted for58%, mainly high-income strata of society; legal institutions loans accounted for42%The taxi industry, mainly. In the purchase a car uses, to operate for the purpose of accounted for51%Owned vehicles49%.⑶Vehicle loans mainly cars, accounted for the total loans80%. The term of the loan is mainly1-3Year period, but also in the loan guarantee, mortgage, pledge and guarantee of the third party (mainly the investment performance of credit insurance) each accounted for1/3.⑷At present, the domestic automobile consumption credit is more concentrated region for the coastal developed areas or automotive industry base.

1．2．1The basic pattern, the current domestic automobile consumption credit

Fig.1   The basic business of domestic automobile consumption credit flow chart of current

                                               B 

The vehicle registration department     E    Distributor    D    Financial institution

                                               G

                                     E F A    C    H

 

                                        The user

1．2．2, process explanation:

A,The user at the dealer selected models and fill out the loan application;

B,Dealers will users loan documents financial institutions lending;

C,Financial institutions for credit assessment of user;

D,Financial institutions approved loans and notify the dealer;

E,The dealer to assist users signed credit contracts and financial institutions, automobile mortgage registration in the relevant departments;

F,Dealers car delivery to the user;

G,Financial institutions in the received dealer contract documents, loans to customers;

H,The user according to the stipulations of the contract to the financial institutions regularly owing on the loan.

1．2．3The creditor's rights guarantee mode, the current domestic automobile consumption credit

According to the regulations of automobile consumption credit experience of developed countries in the world and China's "general principles of civil law", there are four main creditor protection mode of automobile consumption credit: mortgage, car ownership retention guarantee, repurchase rights clause guarantees and the buyer to provide the guarantee or pledge. The creditor's rights guarantee mode adopted by China's automobile consumption credit business, mainly for the first, four ways above, the specific mode of operation is mainly:

1．2．3．1Mortgage, car:

According to the newly promulgated "vehicle registration", can registration certificate for automobile (car mortgage status records) as a means of protection of automobile mortgage, so that the domestic automobile consumption credit business in the car purchase mortgage loans, financial institutions have set the implementation possibility for the first mortgage on the international creditor protection. According to the "Regulations of automobile consumption credit pilot approach", in order to guarantee, Shoufu ratio can be30%"Vehicle registration", because the time is not long, and before this, the lack of practical car as collateral, so the way to use at home is not very common, is still in the initial stage;

1．2．3．2Purchase a car, by providing third party guarantor:

At present the implementation process of the third party surety is generally car dealers, who are required to purchase a car dealer according to the amount of security to provide a certain percentage of the guarantee fee (usually the loan amount1%-2.5%), and the need to provide a common debts or to purchase a car, but also in the borrowers can not repay, the vehicle is required3The annual depreciation rate pricing to guarantee dealers. In this manner, the guarantee of the third party should assume if the borrower default duration after repayment of the debts, creditors have change requests and guarantee human rights. At present this way and purchase a car purchase credit guarantee insurance combination, formed "the whole way of security dealers" gradually popular in china;

1．2．3．3Purchase a car, buy credit guarantee insurance:

According to the1999Years8Month Chinese CIRC promulgated the "automobile consumer credit guarantee insurance Interim Provisions", the insurance requires insurance people purchase a car, the beneficiary is the guarantee for the third party purchase a car, for dealers, the amount is only the loan amount, and require the insurance period longer than the duration of the loan contract at least6Month (period at6Months to5Years), but also prolong the term of insurance rate increases, the premium in insurance contract prior to the commencement of a one-time payment, and register the mortgaged property; and mandatory for the loss of vehicle insurance, third party liability insurance, pilfer, risk of spontaneous combustion, motor vehicle insurance in a insurance agency, and shall not surrender, and period to longer than the credit guarantee risk at least6Month. This requires that in the actual operation must be third party guarantee and credit guarantee insurance combination. But according to the international automobile consumption credit business experience, along with the automobile mortgage guarantee way in China becomes more and more popular, and gradually establish and perfect the system of credit evaluation, credit guarantee insurance will no longer as a kind of common customer requirements, applies only to the credit assessment inadequate credit customers;

1．2．3．4, deposits or securities collateral:

The main reason people purchase a car for automobile consumption credit is the lack of sufficient funds to purchase a car, from this perspective, it does not have the universal significance, only apply to assets investment options for in a few high-income customers purchase a car with the guarantee. But because of the current domestic automobile consumption credit business is still in the initial stage of development, the credit guarantee single form, make deposits or securities pawn is still relatively common, and mortgage, guarantee of the third party (plus investment and credit guarantee insurance) guarantees each accounted for the domestic automobile consumption credit business credit the way of security1/3With the diversification, guarantee automobile consumption credit in China, pawns the guarantee way which occupies in the credit business of the domestic automobile consumption ratio will be less and less, with the gradual establishment of China's credit guarantee system, and automobile consumption credit business internationalization trend is accelerating, according to the international automobile consumption credit business experience, automobile mortgage guarantee and no additional credit guarantee insurance third party guarantee way will become the main direction of the development of automobile consumption credit business of our future.

2, characteristics and problems of the domestic automobile consumption credit

   2．1The characteristics of the domestic automobile consumption credit

At present, the automobile consumption credit market in China is mainly the following characteristics:

1Have basic legal, policy of automobile consumption credit business assurance:"General principles of civil law", "economic contract law", "guarantee law", "insurance law", "Civil Procedure Law" and "bankruptcy law" and a series of laws, decrees and "car consumption credit pilot approach", "auto loan management approach", "guidance on developing personal consumption credit.", "vehicle registration" and a series of policy documents, make China's automobile consumption credit business with the law and policy of basic, forms the basis for China's automobile consumption credit business development operations.

⑵Have carried out loose external environment of the automobile consumer credit:Since ninety, China's economy has maintained an average annual8%The growth rate of more than ten years and the future in the future of China's economic growth rate remained at7%About the forecast, growth will be driven by the purchasing power of residents and consumption level. The current residents of the savings deposit balance7Trillion yuan, but the residents of stocks, bonds and other financial assets liquidity strong has reached nearly5Trillion yuan, the Chinese residents have strong consumption ability, especially the ability of credit consumption. According to the investigation data of the Construction Bank of China, the average annual income reached3A million families have520Million, which is expected to accept the way of consumer credit ratio reached78%At present, especially the domestic automobile market demand main body has gradually from the unit consumption, business needs, to the stage of development in a variety of demand for personal consumption, mainly, automobile production capacity has been fully meet market demand (rate of less than the capacity of the automotive industry60%), auto consumption credit has a very broad (and may erupt at any time) market potential. But the financial service system, perfecting financial service diversification, development and is very popular financial business operation Electronic degree also contributes to the automobile consumption credit market.

⑶Has initially formed a set of development of automobile consumption credit business experience:The mid ninety's, some domestic enterprises financial companies have been involved in the automobile consumption credit business;1998Years later, the state-owned commercial banks have opened this business, but the development speed is very quick; in recent years, the domestic commercial banks and car dealer (and automobile manufacturing enterprises), the insurance company the development of automobile consumption credit business, achieved good results. The automobile consumption credit business in China also has a set of experience, but also with the establishment of credit guarantee diversification, the credit evaluation system and transnational automobile Credit Company to participate in the domestic market, the domestic automobile consumption credit business will be more complete and mature.

⑷The domestic automobile consumption credit to the formation of scale and specialization:Scale and specialization is the main characteristic of the international automobile consumption credit business, the credit industry, automobile consumption of our country most needs to be strengthened is the industry and enterprise scale and specialization. The scale is to reduce the operating costs of enterprises, the basic conditions to provide all-round service for the customer; specialization is formed the technical advantage of the enterprise, through the business operating system the establishment of efficient and effective risk management system, reduce the risks of business, service in the continuous and stability, and promote the further development of automobile consumption credit market.

   2．2The main problems existing in China, automobile consumption credit

According to the practice of China's auto consumption credit, automobile consumption credit in China mainly exist in the following questions:

1China has not yet established effective risk management system:Mainly displays in, first, because "vehicle registration" has just been implemented, vehicle mortgage is still in the initial stage, did not become common risk management mode; secondly, at present domestic still lack of effective evaluation of personal credit information, credit nationwide evaluation system is not established, the automobile consumption credit business of bank and dealers rely mainly on insurance companies to provide credit guarantee insurance to realize the control and management of risks; third, overdue debt collection difficult to carry out, because of the credit status unknown brought credit risk and the car as movables particularity of management, so that the automobile consumption loans overdue debt collection once formed, difficulty is great, and because the fuzzy past the car of the definition of property rights (such as the lack of effective property title certificate definition tool) and the actual operation of the feasibility of small (this phenomenon put forward the automobile Registration Certificate in the "vehicle registration" after the really solved), the collection of the overdue loans to expand, although in the automobile consumption credit business in China now carry out, overdue loans less, only accounted for the loan0.5%; fourth, due to the development of second-hand car market behind, severely restricted the realization process to recover the vehicle, not normative second-hand car trading market, as well as the appraisal of the chaos, the financial institutions to carry out the auto consumption credit even for overdue loans to property preservation measures to repossess the vehicle, still unable to recover the vehicle at reasonable prices sell to compensate for the loss.

⑵The current domestic automobile consumption credit market lacks the necessary degree of specialization:Mainly in the domestic commercial banks, as the main business to offer consumer credit business (but also basically is the only domestic credit subject to start a car consumption credit), and subject, in the most important international automobile consumption credit market is a professional service provider -- subordinate finance company car enterprises because of many source of funds, risk management is not involved in this area, which also determines the domestic automobile consumption credit market is difficult to achieve a real sense of professional.

The implementation of the main automobile financial companies lack the professional services, it is difficult to really expand the automobile consumption credit business, and the automobile consumption credit business of our offer, single financial products, because the bank is to earn lending spreads as the main purpose, which determines the nature cannot assume on automobile sales market the development and stability of the responsibility, so the bank operating only new car purchase loan business, unable to meet user expectations such as second-hand car financing, lease financing and other financing needs. But the bank as a non specialized agencies engaged in the automobile consumption credit business, there are procedures for complex, high cost (need to provide credit guarantee insurance, increase the user's burden), financial instruments (such as credit repayment) single and many other issues, difficult to truly meet the domestic demand for automobile consumption credit.

The automobile financial company due to the lack of financing channels, currently rely on the automobile production enterprises of production capital (although can participate in the interbank market7Short term financing days, but can not make up for its financing channels dilemma), do not possess the social financing channels and ways, unable to carry out large-scale automobile consumption credit business. And the credit evaluation system has not been established yet, the present social credit is not high, but in the late ninety's, exposure of automobile consumption credit business part of the automobile financial company of enterprise funds are in arrears, dealers, auto production enterprises should be many problems to increased receivables, directly affects the development of normal consumption credit business.

⑶The specific legal provisions guaranteeing the normal development of automobile consumption credit business is not yet perfect:Although China's current laws, decrees and relevant policy document for the automobile consumption credit business provides the basic legal, policy framework, which has the basic operation, but in some specific problems, the existing laws and policies are not specific, not perfect. Especially the international practices such as dealer inventory financing and user installment, because is still in the pilot phase started, some new problems involved in the lack of legal and policy basis for handling specific. Moreover, the current national on car consumption policy also not in the vehicle fees, tax regulations, the abolition of unreasonable charges, simplified car purchase a car procedures, formulate relevant provisions for auto consumption market development, policy factors are difficult to really stimulate the domestic automobile consumption credit market development.

Two, the development of international automobile consumer credit business and the main mode of operation

Automobile consumption credit is initially by20Century, twenty's major automobile manufacturers to provide car consumption to dealers and users installment began, and by the manufacturer, was founded by the financial services agency. GM bill first automobile finance service organization is American General Motors Acceptance (GM Acceptance Corporation), the automobile consumption credit mode due to the mass production of the automobile sales system requirements, and it is developing rapidly;30The Volkswagen "beetle" for car(Beatle)Sales (mainly in the America) launched the purchase a car savings plan, implementation of the automobile finance service social financing. After the Second World War, the automobile consumer credit business has spread widely in the world,1959Years Ford Credit Company;1967Chrysler Credit Corp was founded;1949Years later, with the Japanese release of automobile production quota restriction, supply and price regulation, and the policy of deflation caused the deterioration of the economic situation, to start the car market, the major car companies have launched the automobile consumption credit business, after the sixty's established own financial company,1963Nissan credit Surety Company;1964Years of Isuzu sales finance company founded;1988Toyota Finance Corp was founded, engaged in auto sales financing.

1The scale of operation

The current global auto sales in major developed countries50%-70%Through the implementation of the global automobile consumption credit (annual new car sales income of about1.3Trillion), which78%For installment payment,22%As a financing lease. USA70%Car users through consumer credit purchase a car; the proportion of Japan for50%Britain73%Germany and France60%Spain is higher80%Purchase a car, automobile consumption credit has become the most important mode of vehicle sales, play a decisive role in the development of automobile industry.

In the world of automobile consumption credit market, auto Credit Company, especially professional auto financing mechanism of automobile manufacturers belong to occupy a dominant position. This kind of business America auto manufacturers of automobile consumption credit business volume accounted for49%Banks and financial companies, independent business together accounted for only34%The Credit Union (Credit unions) business accounted for17%. The car dealer inventory financing, automobile company exclusive Credit Company loans accounted for the total business volume of inventory financing70%In the user; the installment payment share professional Credit Company in financing is rising, especially for business58%Indirect financing, namely the user through instalments dealer development, mainly to professional Credit Company. Japan's consumer credit in different ways and American, mainly rely on the shinpan company; the stock financing is supplied by the manufacturer; payment business is mainly indirect financing and guaranteed loan agent (by shindan company guarantee and service processing), and business is mainly provided by professional shindan company the bank is the major shareholder, accounting for the total volume of business56%The vehicle manufacturer, a professional Credit Company business amounted to20%, bank accounts only13%.

After decades of development, the automobile manufacturer of professional Credit Company has become an important part of each manufacturer is indispensable, its global business network and huge business and assets have become important means to realize the auto manufacturers globalization of product sales and the overall development strategy. Three of the world's largest organization of automobile financial service is Ford credit, general acceptance and public Financial Services Company. Marketing loan scale automobile at present Ford Credit Company issued about1300Billion, which provides the auto dealers726Million vehicle sales financing, on800Million users of payment business, through a number of Ford Credit Company issued car consumption loans sold cars accounted for annual sales American car38%.1999Annual revenue of $Ford Credit Company13Billion US dollars, accounting for Ford Motor Co18%Total assets; and public Financial Services Company accounted for public companies40%Or so, annual revenue5.51Billion Mark, for public companies25%Every year, on200Million users of payment business, new user number nearly80Million, and the public company1/3The above products are sales by public Financial Services Company financing, accounting for the public company annual sales amount of financing60%Above.

2The background, development

    As a common practice in international automobile industry developed countries or developed countries, automobile consumption credit plays a great role in promoting the development of the automobile industry.

I, greatly promoting the development of auto sales:The car user sales financing, can directly promote the sales of motor vehicles, which is one of the objectives of the automobile financial service is the most important. With the formation of vehicle mass production system, the market supply is growing faster than the growth of market demand, the market has become the most important constraints restrict the normal development of the automobile, therefore need financial services intervention, to cultivate the market demand. Automobile consumption power is generally automobile consumption credit business of common country, the automobile consumer financial services has become an organic part of car sales in the process of.

II, improve capital circulation, reduce capital risk:Especially on the car dealer inventory financing credit business,Consumer credit business makes the automobile production, wholesale, retail funds phase separation, improve the capital circulation, reduce accounts receivable manufacturers, promote the dealer inventory turnover, reducing the customer to the cash flow of automobile consumption.

IIIPromotion: promotion, consumer creditCredit consumption mode has many benefits, one is to stimulate the market, greatly expanded the immediate consumption ability; two is at the same time still has enough cash flow to get other assets of value-added opportunities; three is to further the formation of consumer reaction to the production, thereby enhancing the power of technology upgrading and updating, faster to reduce product cost, promote the benign cycle of production and consumption.

IV, increase profit opportunities:For manufacturers, due to the increase in car sales and expand the profit; for distributor, the profit increase from three aspects: one is the car sales increased profits; two is the stock fund occupation is reduced, flow speed and increase profit; three is obtained from the financial institutions Commission income. For a financial institution, the natural can benefit from spread and various middle income. In terms of customer related expenditure, increase of automobile consumption by financial services on the one hand, it can greatly reduce the cash flow a one-time expenditure, other profitable opportunities therefore does not lose assets due to automobile consumption, automobile consumption opportunity cost is greatly reduced.

3, basic management, operation mode and characteristics

3．1Basic business, mode of operation

3．1．1Automobile consumption credit, typical model of American:

3．1．1．1The financing mode, American automobile inventory

Fig.2   Automobile inventory financing flow chart USA

B              E

The state government ← --Credit Company-- >The manufacturer

                 A   G   C         

 

       F                D

The user ← --  Distributor

3．1．1．2The flow chart of the explanation:

ACredit Company, evaluate dealer credit and marketing situation, decided to loan amount, and the loan contract signed with the inventory financing;

BThe state government, Credit Company to do (to current and future financing vehicles for the mortgage) financing Mortgage Registration, as the flow of mortgage;

CSubmit orders to manufacturers, dealers;

DAutomobile manufacturers, according to production orders and sales to dealers;

EInstead, the Credit Company to repay loans car dealers, since then;

FVehicle sales to consumers, dealers will;

GThe car dealer, repayment and interest to the Credit Company.

3．1．2．1USA, car payment mode

IA direct financing

The operation is simple, i.e. the user directly to the bank or Credit Company to apply for loans to purchase a car, and then use the loan to buy a car dealer, the return of the loan instalments.

IIIndirect financing

Fig.3   America automobile installment (indirect) financing flow chart

                                   E            B

The state of automobile management department ← --Distributor   D    Credit Company

                                       F   A  G

 H           

         I   C

                                         The user         Credit Information Bureau

3．1．2．2The flow chart of the explanation:

A,Users in the selected models and dealers to fill out loan applications;

B,Dealers will users loan information through the network, sent to the local branch of the Credit Company;

C,The Credit Company through the network to the credit information bureau obtain user credit information, credit evaluation;

D,Approval notice dealer loan Credit Company;

E,The dealers and users signed the installment sales contract, and registration with the state government of automobile management department (display vehicle mortgagee, in vehicle ownership certificate issued by the Credit Company in automobile management department of licensing);

F,Dealers give the vehicle to the user;

G,Credit Company in the contract documents received after the dealer, from loans and commission;

H,The user stipulated in the contract to pay the installment payment to Credit Company;

I,The Credit Company will provide customers with regular payment information to the credit information bureau.

3．1．2The typical mode, auto consumption credit in Japan

3．1．2．1Japan Automobile inventory, financing mode

The operation is simple, the stock vehicle dealers from manufacturers to delay payment direct buy-out operation, and develop the repayment period (generally45-60Day); after the expiration, regardless of whether the vehicle sales, dealers must pay up. For the maturity still failed to achieve sales of vehicles, mostly to banks for liquidity loans financing (the dealer about75%), or the automobile manufacturers to finance companies (about25%).

3．1．2．2In Japan, car payment mode

IDirect financing (mainly for the bank)

Simple operation, similar to USA approach, namely the user directly to the bank loans, and will buy the car as collateral for the loan, and then to the bank payment.

II. indirect financing (with the same America mode).

IIIGuaranteed loan agent

Fig.4   Japan automobile installment (guaranteed loan agent) financing flow chart

                                       A

Distributor                   The user

B DG  J     F

                                   C     K     E

                                      D

Shinpan company     H         Financial institution

                                   L  I

3．1．2．3The flow chart of the explanation:

A,The user at the dealer selected models and fill out the loan application;

B,Dealers will the user's loan application to the shinpan company;

C,Shinpan company credit assessment and survey of users;

D,Shinpan company approved loans of financial institutions to provide loans to dealers and notice (general insurance company);

E,Financing contract and financial institutions to provide loans to customers;

F,Dealers give the vehicle to the user;

G,The dealer to request payment shindan company car;

H,Shinpan company to request disbursement of loans of financial institutions;

I,Financial institutions make loans to the shinpan company;

J,Shinpan company loans to dealers;

K,The user to the shinpan company installments;

L,Shinpan company to financial institutions pay customers due payment and collect the corresponding income.

3．1．3The typical mode, auto consumption credit in Taiwan

Because Taiwan does not have a floating mortgage law, the bank was unable to obtain the vehicle mortgage in providing automobile inventory financing, the Bank of Taiwan does not provide the vehicle inventory financing; basic is owned by the sales finance companies to provide manufacturers show car established vehicle inventory. But the sales finance companies is not a financial institution.

Because Taiwan has not established a personal credit information system perfect, only the Bank Guild storage part of personal credit in the bank information, therefore, the sales finance companies in the credit investigation, to understand the user's credit status usually visit by telephone, users generally need to provide assurance of persons and property or proof of income.

3．1．3．1Taiwan automobile financing mode, inventory

Fig.5   Taiwan automobile inventory financing flow chart

                             B

                   C                  A              

The manufacturer   D    Sales finance companies   F  Distributor    H     The user

                            E          G

3．1．3．2The flow chart of the explanation:

A,Sales finance companies evaluation dealer credit status, to determine the amount of financing and sign the contract;

B,The manufacturer to dealer orders production;

C,The manufacturer will vehicle sold to sales finance companies;

D,Sales finance companies payments to manufacturers and vehicle ownership;

E,The vehicle from the manufacturer directly to the dealer inventory, only with the "show" name, provided by sales finance companies;

F,Dealers in the sale of the vehicle, car and display fee (equivalent to repay interest) to the sales finance companies;

G,Transfer of vehicle ownership from the sales finance companies to the dealer;

H,Dealers will vehicles sold to users.

3．1．3．3Taiwan, car payment mode

IDirect financing (with American approach).

IIInstallment sales

Fig.6   Taiwan automobile installment financing flow chart

                                                B

Highway administration organs (county, city)   E   Distributor   D    Sales finance companies

                                                G C

                                        F   A       H

                                         The user

3．1．3．4The flow chart of the explanation:

A,The user at the dealer selected models and fill out the loan application;

B,Dealers will loan application is sent to the sales finance companies for the credit evaluation;

C,Contact the sales finance companies and guarantee the user to determine the credit status;

D,The sales finance companies will approval notice to inform the distributor;

E,The dealer to help sales finance companies and users of contracts, mortgage registration and licensing of vehicles;

F,The vehicle by the dealer to the user;

G,Pay commissions to dealers;

H,According to the installment contract payments to the sales finance companies.

 

3．1．5Comparison, Japan, Taiwan, America different automobile consumption credit

 

Table 1     Comparison of automobile inventory financing mode America, Japan and Taiwan

 

 

Table two     America, Japan and Taiwan car payment mode

3．2The main characteristics, management

1Scale and specialization has become the main characteristic of the international automobile consumption credit business:Through scale operation decreased as the typical retail business of automobile consumption credit business costs, which have a certain scale of the number of customers and maintain the stability of the user growth rate, increase the level of profit. At present, such asAmerica Ford credit, public Financial Services Company and other international big enterprise the customer number in the millions of cars, the annual volume of business and even reached more than 100 billion U. s.dollars, thus profitability for the entire group20%Left and right, has become an indispensable part of group business development; and the automobile consumption credit industry through its business functions, business operations and risk management, and is mainly specialized in professional Credit Company as the main body of market, which the technology monopoly, automobile consumption credit of automobile consumption credit industry stability and continuity business enterprises, the scale advantage, and reduce the risk of automobile consumption credit, promoted the healthy, rapid development of automobile consumption credit market.

⑵With the legal security system necessity:Because the automobile consumption credit is the automobile trade based money lending relationship, thus by establishing a perfect legal system, to ensure that the creditor, the debtor's interests is the key to the whole business.In American, through the car ownership certificate uniform commercial code, state laws made, and loan conditions that law, decree law and even bargain Committee method of inventory financing, the flow of mortgage, the installment financing involves defining all issues related to the clear legal; in Japan, "road transport vehicles method", "car mortgage law", "installment sales method" on the installment financing related problems are a clear legal norms. It is a perfect legal system, greatly reducing the credit financing risk, safeguard the legitimate rights and interests of users, and promote the development of automobile consumption credit.

⑶A stable financing channels:In addition to commercial banks can take deposits, to ensure the stability of the financing channels outside, other professional Finance Companies can also through the capital market or from other financial institutions borrowing to raise funds, multi-channel financing of security funds stability. USA auto Credit Company can raise short-term and long-term funds through the issuance of commercial paper and corporate bonds, bank loans and other means; Nippon shindan due to bank shareholders, which mainly through loan financing, but also directly to the capital market financing.

⑷The implementation of more stringent risk management procedures:The automobile consumption credit in developed countries have carried out more perfect risk management program.One is the financing object (including dealers and apply for instalment financing user) credit assessment strict; two is the vehicle of mortgage financing or ownership; three of inventory financing vehicles, required to buy insurance, and periodic inventory vehicle inventory; four is the requirements for individuals to provide joint liability guarantee.

⑸To carry out the more standard dealership financing service:In foreign countries, service outlets in addition to traditional car sales, repair, spare parts supply, but also to provide thoughtful, normative financing services for users. The car dealer as a direct implementation of vector of user installment, convenient for the user to buy, to realize the user "people-oriented" service concept.

⑹The establishment of a more perfect social service system:With the development of auto sales financing, foreign countries have established social services more perfect, including the departments of registration of mortgage, credit information bureau, collection and recovery department, used car auction center, by these institutions to provide convenient and efficient service, and go through the formalities for simply and effectively, promote the development of automobile consumption credit business.

4, development trend

Future development of the international automobile consumption credit business presents diversification, modernization and internationalization trend.

1,    The diversification trend:

Mainly manifests for the,1Financing diversification, not only for a single brand and products of an enterprise to carry out automobile consumption credit business, and through the agency will raise object extends to a plurality of brands, many enterprises;⑵Financial service type diversity, to purchase a car to car consumption credit derivatives and other areas of personal financial services, and further promote the automobile consumption credit business, to meet the automobile financial service demand purchase user multi azimuth;⑶Geographical diversification, provide the corresponding products of automobile financial service according to different regions of the user needs, the user can either choose different areas which automobile consumption way to obtain the corresponding financial support;

2,    The modern trend:

Business operation and risk assessment of automobile consumption credit the use of modern high-tech means, including information technology represented by the Internet, the automobile consumption credit business, as a main is faced with numerous customers to retail financing business, the cost can be reduced through the use of modern technology, such as the public Financial Services Company through direct bank network credit "("Derict Bank) business.

3,    The trend of internationalization:

With the globalization of world economy development, the automobile industry in the world is accelerating restructuring, globalization and proxy auto giant's global production, sales will inevitably bring about the automobile consumption credit business of bank. This is because the small automobile financial service institutions due to efficiency and transaction cost, obviously at a disadvantage in market competition, to seek into Multi-National Corporation; and promote monetary integration, such as the euro zone makes the trend of internationalization is easier to carry out; on the other, the development of global consumer credit business, can improve economies of scale, through the expansion of customer size reduce indirect costs, improve asset returns; fourth, with transnational automobile financial service institutions diversify business, such as wholly owned, joint venture, financing and other types of agents, and the current global economic integration and the development trend, which can set up the global agencies in the consumer credit business, can also be automotive products for the global development of financial services, which is bound to promote consumer credit business International Olympic Committee development business.

Three, China's accessionWTOAnalysis of the effect on the automobile consumption credit and development trend

1, China's accessionWTOImpact on the automobile consumption credit

1．1,WTOThe main provisions regarding the aspect of the car

　　On trade in goods:Taxes and other expenses in car sales, purchase, transportation, distribution or use of the various links make no exception to the domestic products and imported products; cancel the quantitative restrictions on imports, nearly three years the average actual imports as a transition period, the first year to quotas issued as the basis, the annual growth15%Until2005Annual quota, the amount of import is base of automobile trade60From billions of dollars2000Year annual cut tariffs10%,2006Years ago, the average import tariff to25%Parts import tariffs, lowering the average10%.

1．1．1Technical barriers to trade:

"Technical barriers to trade communication protocol (referred to as"TBTThe implementation of the mandatory provisions of the technical specifications), non mandatory technical specifications and product certification system, the communication protocol in "in the agreed international standards, there is a fundamental difference on technical regulations, special technology and methods of producing process is designed to protect the developing countries in the use of standards and testing methods, and should not be used".

1．1．2, investment and technology transfer:

From the2001Year started with goods trade related investment measures (communication protocolTRIMS), the provisions of the protocol: shall not the proportion of domestic; import and export shall not hook; not to restrict imports of components assembly loading; not in foreign exchange for import restrictions for balance; shall not export quantity; but refused to implement the requirements imposed by contract.

1．1．3, service trade:

To provide market access channels, allowing multinational capital mobility; the quota and monopoly restrictions on foreign suppliers shall not; not the total trade in services or assets limit; shall not implement the stock ratio and the total amount of investment shall not be limited by restrictions; shape; forbidden to their service providers to provide subsidies must be implemented; national treatment; must be given to the most favored nation treatment etc..

　　1．2China's automobile industry, the main policy or regulations

1．2．1Trade in goods:

With a limited number of imported cars, and collection10%Consumption tax,15%Vehicle purchase fee; the average tariff for vehicle imports55%, which, cars, light duty vehicle imports80~100%Import tariffs, imports of parts and components for the average tariff35%. Thus the current import prices CIF, mainly by the vehicle consumption tax (5%-8%Value added tax (,)17%Tariff (,)80%-100%).

1．2．2, service trade:

Foreign investment shall not be allowed to enter the Chinese automobile service field, such as import and export, financing, insurance, leasing; production of automobile, motorcycle and engine products of Sino foreign joint venture, cooperation of foreign equity ratio shall not be higher than50%; the provisions of legal form, in the field of vehicle and engine not to sole proprietorship form; foreign investors may not set up wholly-owned passenger, freight company in china.

1．2．3With the introduction of technology, investment:

Provisions of the localization rate, and according to the localization rate formulates preferential import tariff policy; export encouraging policy; approval of imported technology must consider the localization requirements, otherwise not approved.

1．3, China's accessionWTOImpact on the automobile consumption credit

Can be seen,WTOThe focus of contradictions between the main clause and the current automotive policy in terms of market access, the current auto industry policy or regulation in investment, technology, services, trade restrictions on foreign enterprises to enter, just andWTOThe basic principle of the opposite.

JoinWTOLater, China's auto market will gradually open to foreign companies, with strong capital strength and advanced management experience, is bound to China's service trade domain especially produced strong impact of automobile consumption credit field. If the Chinese government if not promptly established and perfected the automobile consumption laws, regulations, credit system, creating a good environment for auto consumption credit, it will be difficult to promote the automobile consumption credit development; and the producer must be industry restructuring, the existing stock into integration, the introduction of advanced technology and management, improve the labor productivity, reduce the cost of cost of the vehicle, in order to meet the needs of China people; advanced service, financial institutions must learn foreign and management tools, establish the service concept and service mode of the new, to promote the development of automobile consumption credit.

2The development trend, domestic automobile consumption credit market

With China's accessionWTO, transnational automobile consumption credit institutions to enter the domestic market; and the Chinese government is step by step to open the car consumer credit, and consumer behavior of Chinese residents is undergoing a historic change, will promote the automobile consumption credit market in China has entered a new stage of rapid development.

IFuture, the domestic automobile consumption credit market has broad prospects for development:With China's sustained and stable growth of economy, the living standards of residents and consumption capacity will increase, with the income increase, the consumption behavior will be a historic change, especially the transformation of savings to consumption credit consumption, will release enormous consumer demand; and with the China joinWTOThe credit market, the domestic automobile consumption will further open to the outside world, multinational automobile consumption credit institutions to enter the Chinese market, internationalization and specialization of automobile consumption credit mode and the concrete operation process will greatly stimulate the domestic automobile consumption credit market demand; in addition our government involved in the auto consumption credit policy and law, law construction will gradually with international standards, the policy change of automobile consumption credit incentive will further stimulate the domestic automobile consumption credit market demand; according to our residents purchase capacity of the existing and the future purchasing power prediction, will have broad prospects for development of automobile consumption credit market in the future.

IIAutomobile manufacturers at home and abroad, the financial company will become the main domestic automobile consumption credit credit market in the future:The vehicle manufacturer financial (credit), has been a major creditor of automobile consumption credit market in the world, but the world automobile consumption credit is a financial companies owned by the auto manufacturers to promote the sales of automobile financial company, with a high degree of specialization, closely with flexible sales strategy with the production enterprises with a competitive edge in the market, with the future of domestic may refer to the international practices, the automobile financial company open social financing, so that it can be taken as corporate bonds, commercial paper issued directly to overcome financing the biggest disadvantage poor, automobile enterprises of financial companies will replace bank and become the main body of market of domestic automobile consumption credit credit of automobile consumption credit business, will enable the domestic more professional, to meet different customer needs, and promote the development of auto sales market.

III, the international credit mode and financial instruments will become mainstream products in the future market of domestic automobile consumption credit:Along with the international automobile consumption credit institutions to enter the Chinese market, domestic and foreign automobile enterprises owned financial (credit) company's credit market of domestic automobile consumption credit subject, the domestic automobile consumption credit must show a specialization, scale, internationalization and the development of financial development trend of diversification of products, and will introduce the international consumer credit and financial means, to expand the domestic automobile consumption credit products, to meet the needs of different users, different levels of demand.

Four, suggestions and Countermeasures to quicken the pace of domestic automobile consumption credit business development

From the analysis of foreign experience in the development of automobile consumption credit, automobile credit business to carry out the following four basic conditions:1Have a certain scale of the auto market and financial assets;⑵Legal, laws and basic guarantee;⑶Relatively complete financial organization system and sales system;⑷Professional management experience and methods. At present, in addition to professional management experience and methods, other hardware conditions, our country has possessed, though compared with foreign automobile consumption credit business, still remains to be perfect. Therefore, in the future to speed up the development of domestic automobile consumption credit business, to achieve "through the development of automobile trade based, automobile mortgage guarantee of consumer credit, to expand the sales of cars, the final objective to promote the development of automobile industry".

    1Introduction, management experience and methods of foreign mature:Professional management experience and methods is one of the main defects in the current China's automobile consumption credit business, which should make full use of foreign mature management experience and methods, expanding on the base of the existing mode of consumption credit, domestic financial products and operating methods, to the dealer inventory financing and to users in installments industry and finance lease business promotion, automobile mortgage guarantee way the international, and further enhance the ability to develop, domestic automobile consumption credit agency service, in the professional risk management, product and market face, realize scale management of automobile consumption credit, enhance the enterprise in the automobile consumption credit market competitiveness.

    2Establishment, auto consumption credit model in the domestic automobile enterprises financial company credit market main body as soon as possible:The automobile financial company to become the automobile consumption credit market credit is the main market of professional development requirements, but also the inevitable trend of the future development of the market, specialization will contribute to join inWTOForeign auto financial company after the market by the impact, to ensure the stability of automobile consumption credit market development and continuity, scale benefit and the formation of automobile consumption credit, promote the domestic auto sales. But the bank as the main financial institutions in China, because of its integrated and business purpose, making it impossible to become a specialized agency of automobile consumption credit, while the automobile financial company in contrast, has obvious competitive advantage in the market (although the cause, for funding this advantage unable to play).

3To expand the domestic automobile enterprises, the financial company capital source:Foreign auto financial company capital source channels mainly include:1The issuance of commercial paper, in general terms30-50Days, not more than270Day, issued by rolling, to support the auto dealer inventory financing, which is the main way of foreign auto financial company capital source current;⑵Purchase a car savings, financial company to purchase a car users to absorb the deposits;⑶Discount sale or purchase a car hire purchase contract, financial companies will purchase a car hire purchase contract in the bank mortgage loans, but also can obtain bank revolving credit in a certain amount of (Revolving credit), don't always apply for loans;⑷Purchase a car hire purchase contract securitization, can purchase a car hire purchase contract to sell. By contrast, the domestic automobile enterprises financial company capital source channel is relatively single, basic is the production of capital occupying the automobile production enterprises, deposit and loan business in China70%Is conducted by the bank, to the development of domestic automobile consumption credit business, make it really become the effective means to support the automobile market, must solve the funding problem of domestic automobile financial company. We can learn from foreign companies, allow enterprises to financial companies issuing commercial paper and corporate bonds, and formulate specific operational approach; allowing financial companies started "purchase a car special savings" business to purchase a car consumers; to realize the reasonable division of banks and financial companies, financial companies to bank financing, developing automobile consumer credit, to purchase a car stage payment contract for the pledge, access to bank loans, or bank discount acceptance and purchase a car hire purchase contract, give a discount or discount, or directly to the bank to sell the purchase a car hire purchase contract. Formation and corporate finance company matching of automobile consumption credit system perfect.

4As soon as possible, to establish a national (especially for personal credit evaluation system):As one of the basic content of risk management is through credit evaluation analysis of automobile consumer credit customer stability, loan repayment willingness and ability. Get in the way of information,OECDIn the1972Years of the promulgation of the "fair credit reporting law" has been clearly defined (also calledOECDThe eight principle). In the acquisition of customer credit information investigation, establish the credit evaluation through the establishment of credit risk model, credit registration and consulting system is then established by the real name, the establishment of personal financial accounts, and special automobile consumption credit scoring system means the establishment of China's credit evaluation system, realize the customer's credit evaluation.

    5China's auto consumption credit, perfect the related law and policy as soon as possible:According to foreign experience in the development of automobile consumption credit, legal issues related to it is:1The law of property preservation;⑵The law of mortgage;⑶Standard terms in consumer credit contract. As in the past, although China has formed on the automobile consumption credit is the foundation of the legal and policy, but the lack of specific operational, this has seriously restricted the development of automobile consumption credit business. In recent years, with the gradual improvement of the regulations and policies, this phenomenon has been significantly improved, such as in the "vehicle registration" after the introduction, automobile mortgage guarantee way has the possibility of implementation, but the specific operation mode of automobile consumption credit is still needs the national policy and legal improvement. Even can consider through the development of "the automobile consumption credit management approach" (referring to the Japanese approach), to carry out the important legal relationship in automobile consumption credit business shall be defined, to ensure the healthy development of the business.

    6Competition and cooperation mechanism, set up banks and financial companies:Through the reasonable limits on banks and financial companies in the automobile consumption credit business functions of the relationship between banks and enterprises, establish financial companies that compete with each other and reasonable division of labor, namely the enterprise financial company as the automobile consumption credit market credit subject, through the appropriate way to bank financing, and then to the car dealer (mainly carry out automobile inventory financing) and users (mainly is to carry out the car payment and financing lease business) credit. In this competition cooperation mechanism, enterprise financial company also can be taken as the use of bank credit evaluation system and network system, to reduce operating costs, realize the scale benefit, realize the aim of promoting the development of industry, automobile industry and automobile consumption credit Chinese.

    7, introduced to promote the enterprise financial company of automobile consumer credit policy, measures as soon as possible:Except as mentioned in the preceding paragraph allows companies to finance companies to broaden the financing channels and sources of funds, guarantee enterprise financial companies to develop the automobile consumption credit business, also can draw lessons from the foreign financial company of automobile consumption credit business incentives, such as people's bank according to the credit risk of automobile consumption credit is, make special interest rate policy, to strengthen risk prevention ability of enterprise financial company; as soon as possible the implementation of floating rate, promote the marketization of interest rate; the high signal in the auto consumption credit risk, improve enterprise financial company in bad debt reserve ratio, careful preservation of financial assets. Through the promotion of enterprise financial company of automobile consumer credit policies, measures, reduce the enterprise's financial company operating costs, improve the development of automobile consumption credit business profitability, the automobile consumption credit business enterprise financial companies go on the self development, growing a virtuous cycle track, eventually formed the scale management to promote the development of Chinese the automobile industry.

8, perfect the supporting measures related to automobile consumption credit:Including vigorously develop the second-hand car market (including the establishment of a used car auction market), in order to reduce the consumption credit recovery vehicle handling risks, strengthen customer collection (or even can be commissioned to take the public security departments to implement the collection, or the appropriate trace collection etc.), to increase consumer credit publicity and other measures.

9After entering the WTO, the financial institutions abroad, can in Chinese business, can be considered qualified foreign Finance Companies on imported cars and domestic car financing ratio and different proportion of financing of domestic automobile brand.