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Car Finance For All People, Please Participate With Caution
- 2020-05-07-

For the past two years, those who can't profit from the investment in car sector have poured into car financial sector. The projects on sales respect of car sector engage in insurance and the projects on after sales market engage in finance. Today let’s focus on the details of car finance. My conclusion is: in order to expand the car consumption credit, it is necessary to establish a risk control system for the whole business process involving car and human data in time. Otherwise, the bad debt rate will increase year by year in the next few years. It sounds like high-end financing, but the risk control of all kinds of car loans is nothing. If I was a criminal, I'd definately cheat these people. For the second-hand car sector that should have developed rapidly, the whole industry chain of auto finance has pushed up the price of second-hand car, which has already brought the industry into a trough. So I recommend those who plan to enter the second-hand car sector to be cautious.

In recent years, the penetration rate of car consumption credit has increased. The business process of finance company, subsidiary to car makers, was not independent before. With the increasing number of such finance company operating independently, the car makers will gradually stop provide subsides for selling new cars. Such finance company to car makers must participate in the market competition with other finance companies. When finance company, subsidiary to car makers, can choose users autonomously, they can ignore the problems such as credit audit system, post loan risk control and asset management, but if these companies participate in market competition, they have to build the credit and crisis system according to big data expand the scale of credit and improve the quality of assets.

For banks and third-party financial companies, the innovation rate of business process and products will be accelerated next. For example, the innovation of urban commercial banks in some regions in various fields of car finance will be very fast. The

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