What are the main profit models of auto finance?

Basic profit model: At present, China's automobile financial services mainly focus on automobile consumption credit, which can be divided into two categories according to the loan objects:

① Automobile wholesale credit (mainly refers to the working capital loan services provided by auto financing companies to dealers, such as inventory financing, equipment financing, store building financing, etc. ). Such business entities are mainly divided into banks and auto financing companies. )

(2) Retail auto credit (mainly refers to auto consumption credit services provided by auto finance companies to customers. In recent years, the retail auto credit business has increased year by year, accounting for more than 3/4 of the entire auto credit business, and the profit is far greater than the wholesale credit.

Emerging mainstream profit model: In recent years, with the increasing demand for low down payment and low interest rate financial products by the main car buyers after 1980s and 1990s in China, the relevant policies and regulations of the leasing industry are becoming more and more perfect, and automobile manufacturers, dealer groups and third-party companies have set foot in this field one after another. The scale of China's financial leasing market has shown a rapid growth trend, and financial leasing has gradually become an emerging mainstream profit model in the auto finance industry. Automobile financing lease mainly includes two aspects:

(1) operating lease (refers to the process of separating the right to use the car from the ownership, and the lessee obtains the right to use the car from the lessor for a certain period of time in the form of a certain rent. During the lease period, the right to use the car belongs to the lessee, the ownership belongs to the lessor, and the rent is calculated according to the time when the lessee uses the car),

(2) Financial leasing (refers to the process in which the lessor purchases a vehicle from a 4S store and leases it to the lessee according to the lessee's specific requirements for the vehicle and the choice of the 4S store). During the lease period, the right to use the car belongs to the lessee and the ownership belongs to the lessor. When the lease expires, the lessee can decide whether to buy the leased vehicle. If he doesn't want to buy it, he will end the lease relationship. If he wants to buy it, he can pay off the residual value (depreciation price) of the vehicle and obtain the ownership of the vehicle. For the lessee, this "rent first and buy later" method is more flexible and has been gradually accepted by the market.

Value-added profit model: With the development of auto finance market and the increase of consumer demand, auto finance business has gradually penetrated into all aspects of auto consumption. In addition, the profit of selling cars is getting lower and lower now, and various value-added services have become the main source of income for some car dealers. Such as automobile maintenance, automobile insurance, automobile spare parts, automobile supplies, etc. For example, some auto financing companies will provide customers with a complete set of auto maintenance programs to help customers get reasonable prices and timely maintenance services. Maintenance fees can be used as installment loans, which reduces the financial pressure on customers.

Automobile insurance can provide risk protection for automobile credit, make the whole industrial chain flow more smoothly, enlarge the value of the industrial chain and promote the whole automobile transaction process. In the long run, car loan insurance business will surely become a new profit growth point for financial institutions and insurance companies.

New channel mode:

① Automobile e-commerce mode (20 13), the automobile e-commerce mode rises, but it only plays the role of online customer diversion and information provision. Due to the large price gap between online and offline and asymmetric information, the order conversion rate is extremely low. Some platforms rely on meager advertising revenue to survive, and the road to auto e-commerce is difficult. )

② Internet auto finance platform (Since 20 14, many auto manufacturers have launched online auto loan application and approval services on e-commerce platforms or official website to meet the needs of consumers at different levels. Subsequently, the internet giants who have been coveted by the automobile industry for a long time have joined in. They have mastered a huge amount of transaction data and social data and built an Internet car platform. Together with third-party auto finance companies and financial leasing companies, we launched new car installment payment, second-hand car financial leasing and other services, exported the risk control model of big data, provided comprehensive credit for consumers with good online shopping records, opened up new channels for auto manufacturers and gained a huge user base. From the perspective of mature markets, auto finance is not only an important means to achieve differentiated competition between vehicles and dealers, but also one of the profit sources for the growth and survival of enterprises. With the post-80s and post-90s consumer groups gradually becoming the main group of car buyers, the whole automobile industry will face major changes, and opportunities and challenges coexist. )