Three major changes in auto finance demand

“The automotive circulation industry is undergoing a period of structural adjustment and slower growth. The demand for auto finance is also facing three major changes.” Pan Weiming, Vice President of the Minsheng Banking Transportation Finance Division recently “2015 Third China Auto Finance” "The Forum" stated that with the automobile circulation industry, profit margins along the new car, used car, aftermarket and auto finance are sinking; the sensitive points of auto finance will inevitably show a downward trend; the money market and the capital market will be integrated. The demand for services is strong; Internet financial demand is breaking out.

The profit points of the automobile circulation industry chain show a trend of sinking along new cars, used cars, aftermarkets and auto finance. According to the random sampling of 200 cooperative 4S stores by the Minsheng Banking Transportation Finance Division, the gross profit of sales of 200 new 4S shop cars was 10.3 billion in 2011, and it was only 5.7 billion yuan in 2013, a drop of nearly 50%. At the same time, the proportion of gross profit of the post-market of these 4 4S stores increased from 23% to 44%. After the explosive growth of China's new car sales market has ceased, the post-market has moved toward a golden period of development.

According to public statistics of a dealer group, its auto finance started in 2011. In 2013, the gross profit of auto finance has reached 800 million yuan, and the proportion of the total gross profit increased from 1% to 12%. Auto finance will usher in a period of rapid growth.

At the same time, used cars will continue to be the focus of the market. Since 2011, sales of second-hand automobiles have continued to increase at a double-digit rate after surpassing new ones, reaching 16% in 2014, compared with just 8% for new vehicles.

The first car circulation chain service platform in the country - to this investment CEO Wang Chuanyi said in a speech, how can we break through the circulation of the automotive industry. From the public's point of view, the automobile circulation chain investment service platform has taken a big step forward from the initial era of the Internet as an automobile finance client. For the current platform, more consideration is given to the issue of how to reconstruct the related information flow, logistics, and capital flow of traditional industries such as finance and autos under the current conditions of auto finance.

"We believe that in today's development, information flow is no longer a simple time to bring customers and traditional models to bring profit to manufacturers, but an era of value maximization from all angles and dimensions. From the perspective of logistics In fact, it is not an old model that simply provides a lot of money to the traditional car sales process. Therefore, the emergence of Internet finance has had a huge impact on the production and sales of traditional cars," Wang Chuanyi said.

Wang Chuanyi also stated that the so-called Internet car ecosystem is not a simple chain issue but a closely related link. As a platform, from the perspective of customer channels and customer needs, only a combination of online and offline approaches can broaden the funding channels. All funds will be effectively and reasonably conveyed in accordance with the demand and demand of both parties. Only a win-win situation can the vehicles be circulated. The chain service operates normally and forms a true Internet ecological model.