The advantages of consumer credit business are mainly manifested in: promoting consumption, customers expect consumption in advance, which is conducive to balancing supply and demand. The disadvantage is that some customers blindly consume, and irrational consumption has a great influence on economic development.

Second, the advantages and disadvantages of direct customer model of automobile consumption credit

Advantages of direct customer model of automobile consumption credit;

First of all, as the main body of auto credit, the first advantage of banks lies in their capital advantages, and sufficient reserve funds make them more comfortable in loan business.

Secondly, the bank itself is a financial expert and is familiar with the operation of loans. The advantages of capital operation are unique to commercial banks.

Thirdly, commercial banks should check the credit funds themselves, and the strict examination of credit funds is conducive to preventing the risks of credit funds and reducing the occurrence of bad credit.

Finally, from the consumer's point of view, banks earn the difference between deposits and loans, and there are no other expenses except down payment and loan principal and interest. Moreover, due to the strict financial system of the bank, the fees are more standardized and transparent. Therefore, there is no additional intermediate cost for adopting "direct customer" loans.

The disadvantages of the direct customer model of automobile consumption credit;

First, the conflict of interest in cooperation with dealers. Because automobile consumption loans belong to the retail business of banks, it is too expensive for banks to directly face customers. In practice, banks usually entrust dealers to recommend customers and go through relevant credit granting procedures, and dealers' business goal is to maximize sales. From the risk point of view, there is a conflict of interest with banks, so it is objectively difficult to ensure that dealers ignore their own interests too much and consider risks for banks.

Second, the cost that the characteristics of automobile products bring to banks. Compared with other types of loans, the amount of loans for automobiles is small, and besides loans, car purchase includes after-sales service, loan collection, and the handling of taking back mortgage cars, which require banks to have relevant automobile professional knowledge. However, in this respect, banks still lack professional knowledge and personnel, so they have to provide a lot of labor costs for training and management.

Third, it is debatable that banks bear risks directly. Automobile consumption credit mainly serves individual customers, with large quantity, small amount and dispersion. Banks need to spend a lot of manpower on credit investigation, audit and management, which is not only high in cost and low in efficiency, but also difficult to dispose of and realize the default vehicles due to the bank's own attributes. If the customer defaults, the disposal cost will be high, so once the customer defaults, the bank will be very passive. In addition, automobile consumption is a complete value chain, and many chains cannot be connected in series in the banking system. For example, banks cannot become automobile exhibition halls, set up their own repair shops, deliver used cars smoothly, and lack professionals who are familiar with automobile credit.

Fourth, the insurance company underwrites the credit risk. The commonly used automobile credit model is that insurance companies provide guarantees to banks and banks lend directly. When banks do automobile consumer credit business, they usually transfer most personal credit risks to insurers.

Division, and insurance companies have a process of understanding the credit guarantee insurance of automobile consumption loans. The basis of insurance business is the law of probability. However, under the current social credit environment in China, due to many uncertain factors, people's repayment ability and willingness cannot be measured by probability, so insurance companies cannot bear this kind of personal credit insurance. This led most insurance companies to stop this part of auto credit insurance.

3. Do you think the advantages of consumer credit products outweigh the disadvantages, or the disadvantages outweigh the advantages?

I think consumer credit products do more harm than good, because too many people are immersed in them.

4. What are the risks, advantages and disadvantages of developing consumer credit in China in combination with China real estate market? (with case analysis)

Improve the personal credit network system, improve the personal attention to personal integrity, improve the guarantee mechanism, and solve the problems caused by early consumption.