Current situation and development strategy of auto finance in Baoding city

Current situation and development strategy of auto finance in Baoding city

QiuLiansheng

Jiahua College, Beijing Technology and Business University

Abstract: With the rapid development of China's economy, auto finance, a new industry, has developed rapidly and maintained a high compound annual growth rate. However, China's auto finance is still in the initial stage of development, there are many problems, and this industry still needs to explore and excavate, this paper explores the current situation of auto finance in Baoding City, analyzes and summarizes the existing problems in the development process of auto finance in Baoding city, and gives solutions and puts forward corresponding countermeasures.

Key words: auto finance; Market environment; Service mode; Risk control

(一)Problems existing in the development of auto finance in Baoding City

1. The main body of auto finance service is relatively single

Many auto finance companies have been established in Baoding in recent years, but few of them are representative and most of them are relatively small companies. Therefore, commercial banks are the main providers of auto finance services in Baoding, and a single service provider will make the risk more concentrated. At present, the amount of auto loans is growing rapidly, but the credit system is not perfect. However, the credit system is not perfect, and the relevant laws and regulations are still lacking, which is easy to make the hidden risks in the auto finance business begin to expose.

2. The infrastructure is not perfect

Looking at China's current auto finance industry, the entry threshold of the industry is relatively low, there is no professional discipline, no professional talent certification, and there is no specific management method for the financial leasing business that has been developed for a long time. Many auto finance companies have higher interest rates than banks, and in order to seize market share, many auto finance companies have launched more flexible loan plans. In order to capture the market share, many auto finance companies have launched more flexible loan plans. The auto finance loan does not need to provide any guarantee and mortgage, which is accompanied by certain risks.

3. The auto finance market lacks vitality

China's auto finance industry is developing rapidly, and the competition in the auto finance market is particularly fierce. Several large state-owned banks in China have obvious competition in the auto finance market, and these large state-owned banks can basically obtain most of the auto finance market in a region by relying on their own market advantages and capital advantages. As a result, it is difficult for some other auto finance institutions to carry out auto finance business.

(二)Suggestions on promoting the development of auto finance in Baoding City

1. Strengthen the guidance of consumption policy and promote household consumption

In my opinion, to improve the backward concept of consumption, we should start from the policy. It is very difficult to raise the salary level and knowledge reserve of Baoding residents to a large extent. We should start from the formulation of policies, strengthen the guidance of consumption policies, and focus on the development of industries closely related to people's life, which will create favorable conditions for further improving the consumption structure of Chinese residents. At the same time, we should strengthen the financial awareness of Baoding residents, popularize financial knowledge, let the residents better understand the financial, let them more reasonable choice of consumption problems, but also let the development of auto finance in Baoding more stable.

2. Establish and improve the personal credit risk system

The risk supervision measures in Baoding City are not comprehensive enough, the relevant policies are less formulated, and there is a shortage of auto finance professionals in Baoding City. Reasonable credit risk management system will make more financial workers contact with auto finance, so as to realize the development of auto finance.

3. Accelerate the establishment of auto finance industry system and improve relevant laws and regulations

In terms of the economic environment of Baoding City, perfect relevant laws and regulations are reassuring for consumers to make advanced consumption.

References

[1] ZHANG Y Y. Current situation, Problems and Countermeasures of auto Finance Development in China [J]. Rural Economy and Science and Technology,2017:02-070. (in Chinese with English abstract)

[2] XIAO W B, YUE L. Analysis of current situation and development strategy of auto finance in China [J]. Financial Economy,2017:12-014.]