On August 19, the People's Bank of China announced a rate hike, and both deposit and loan interest rates were raised. At the same time, the bank car loan interest rate in Nanjing began to increase. Jiangsu Business Daily learned from Nanjing SAIC-GM, Ford and other auto financing companies that their auto loans also responded quickly. Ford Financial Company has just adjusted the interest rate, 7.75% for two years and 7.95% for three years, which is consistent with the central bank's interest rate increase.
In the impression of most people, it is generally banks that issue car loans. Not many people know about the car loans provided by auto financing companies. This paper compares the two ways of car loan by visiting the 4S shops and some banks in Nanjing.
Banks regard car loans as "chicken ribs"
For most banks, car loans are like "chicken ribs". Do, the risk is too big, the income is not much. If not, it would be a pity to give up this part of the business. Especially in the past two years, in order to seize this market, banks have lowered the threshold for lending, and violations have also occurred from time to time. Many individuals and companies find that they have time to drill and get very little money. They even borrow money to buy a car with zero down payment. After driving for a year and a half, they default on bank loans and leave their cars to the bank, resulting in a large number of loans that cannot be recovered.
According to the judge of baixia district court, at this time last year, many banks in the jurisdiction would take a group of lenders to their courts every once in a while. Most of them default on loans for no reason after buying a car. A state-owned bank cannot recover a large number of loans due to illegal lending. The former car loan department has now become a debt liquidation team, which is only responsible for recovering the money lent two years ago.
The loan owed can't be recovered, and the car depreciates quickly, even if it is auctioned, it will be a big loss. Ultimately, only lawyers who charge agency fees will benefit. Banks that have learned a painful lesson regard car loan as a hot potato, so that many banks stopped car loan business for a period of time.
The threshold for car loans has risen a lot.
Jiangsu Business Daily found that banks have not stopped car loans at present, but the loan threshold is much higher than before.
Business Daily reporters learned from many 4S stores that it is generally not a problem to buy a car from them and apply for a bank loan. Manager Chen of Jiangsu Zhicheng told Jiangsu Business Daily that the auto credit there has never stopped. But compared with before, the threshold for loans is much higher now. First of all, the basic situation of the lender, the bank audit is very strict. Must have a residence in Nanjing, have a fixed job, and have no bad record in the bank. In addition, the bank also requires applicants to provide housing, securities and other guarantees free of charge. Without these guarantees, the bank will ask the lender to provide the guarantor's guarantee, and the guarantor's occupation must be civil servants, doctors and university teachers. Once the lender is unable to repay the loan, the guarantor must bear the repayment responsibility. Now apply for a car loan from the bank, and you can only borrow about 50% at most.
Even if the auditing standards are strengthened, the guarantee strength is enhanced and the loan ratio is reduced, the bank's car loan business is extremely low-key. Unless the car buyer deliberately asks, he will know that the bank has not stopped the car loan business. Business Daily reporters went to the business departments of state-owned banks such as Industrial and Commercial Bank of China and China Construction Bank for consultation. The lobby manager's first reaction was: "Didn't the car loan stop?" Let the reporter go to the credit department for consultation, and the bank knows nothing about it. When the reporter asked about the car loan at China Merchants Bank, the lobby manager asked again and again before taking the reporter to the upstairs office for detailed discussion.
Auto finance company Nanjing competes for market.
The bank threshold has been raised, but auto financing companies have taken a fancy to the car loan market.
In recent years, the domestic auto finance market has also staged a "gathering of heroes". Since the promulgation of the Administrative Measures for Auto Finance Companies in 2003, the CBRC has issued six "access cards" in succession. The first five cards were given to Volkswagen (China) Financial Services Company, Toyota (China) Financial Services Company, SAIC General Motors Finance Co., Ltd., Ford Motor Finance (China) Co., Ltd. and the automobile finance company established by DaimlerChrysler Service Group later. On August 23rd, Shenlong Automobile Finance Co., Ltd., which obtained the sixth "Access Certificate", held its opening ceremony in Beijing.
Different from bank secrecy, the credit business of auto financing companies is extremely high-profile, and the threshold for applying for loans is extremely low.
How do these auto financing companies come to Nanjing to operate? In the 4S shop in Milan, Jiangsu, Zhu Zheng, Commissioner of General Finance Company, introduced their lending process to the Business Daily reporter. To apply for loans from these auto financing companies, you must buy their brand cars in 4S stores. For example, if you apply for a loan from GM, you must buy a car such as Sail, Yuefeng and Lecheng.
With this premise, it is much easier to apply for a loan from an auto financing company. According to Zhu Zheng, it is better for the lender to have a Nanjing hukou and own a house. But it doesn't matter if you don't meet these conditions, as long as you have a fixed residence and a fixed job in Nanjing. They don't need the lender to provide mortgage guarantee and guarantor, but only the original car guarantee. Compared with the requirements of banks, the loan threshold of auto financing companies is indeed much lower. Through them, lenders can borrow up to 80% of the car price.
Business Daily reporter found an ordinary loan case in Zhu Zheng. A Mr. Wang bought an Elantra from them for a total price of about 76,000. Mr. Li pays down 16000, and the remaining 60000 is a five-year loan. According to the annual interest rate of 8.49%, Mr. Wang only needs to repay 1230.7 yuan per month.
It is reported that the time limit for applying for a car loan now is mostly three years. Moreover, newly listed models often have a higher loan ratio. For dealers, having their own auto financing company to provide loans can really promote the sales of 4S stores. Zhu Zheng told Jiangsu Business Daily that many customers had seen many cars before buying models. It was because they provided convenient loans that customers finally chose to buy GM. Li Rui, deputy manager of personal credit department of Nanjing Fulian, told Jiangsu Business Daily that with car loan service, some customers will consider choosing higher-end models. For example, those who originally planned to buy elite Mondeo can consider borrowing more money to buy a flagship.
The personal loan managers of two 4S stores all said that there are more and more loans from them now, about 30 to 50 each month. Relatively speaking, most people who borrow money to buy a car will choose to borrow money through auto financing companies. Although there are banks, the number is much smaller.
What kind of car loan is more cost-effective?
The threshold for applying for a car loan from a bank is high and the procedures are cumbersome; Although it is convenient to borrow money from auto financing companies, the interest is high. So what kind of loan is suitable for ordinary car buyers?
The reporter inquired in detail about the conditions for applying for a car loan at China Merchants Bank. According to the loan officer, they approved a car loan with a car price of more than 654.38+ 10,000 yuan. Moreover, the applicant must be a Nanjing hukou, have a fixed job and must provide a guarantee. Security can be self-owned housing. If there is no housing, civil servants, doctors and teachers must be provided as guarantors. The annual interest rate of their three-year car loan is 6.48%, which is much lower than that of various auto financing companies.
The same is to buy a Ford Focus with a price of 129800 yuan. The same is to apply for a three-year loan of 90,000 yuan, which is also the repayment method of equal principal and interest. Bank savings are much more than auto financing companies. Apply in the bank, repay the principal and interest of 99,273.28 yuan within three years, and repay 2,757.59 yuan per month. If you apply for an auto financing company, the total principal and interest for three years will be101455.1kloc-0/yuan, and you will have to pay back 28 18.20 yuan every month. The final difference between the two is more than 2800 yuan. It's just that the applicant bank needs a third-party guarantee, which increases the cost of guarantee and evaluation. It depends on what is used as a guarantee, and the cost of mortgage with real estate is higher. If you can find a civil servant as a guarantee, you only need a notary fee. So, if you really want to buy a car through a loan, you can meet the conditions and find a suitable guarantor. It is more cost-effective to apply to the bank. Moreover, the staff of China Merchants Bank said that although the bank audit is strict, as long as the applicant meets these conditions, the general bank will lend.
In contrast, auto finance companies are more flexible in lending. The bank stipulates that a car with a price of more than 6,543,800 yuan can apply for a loan, but in an auto financing company, as long as you buy this brand of car, you can get a loan no matter how much it costs. Moreover, many people who do business and work in Nanjing may not be able to provide housing and guarantors, and these people will be rejected by banks, but as long as they have stable income, auto finance companies can approve them. In addition, the procedures of auto financing companies are much more convenient. Lenders can complete all formalities within one week at the longest, and these conditions are not available to banks.
How do auto financing companies control risks?
As long as the risks are well grasped, auto credit is definitely profitable. Everyone knows this. But if the risk is not well controlled, no one's interests can be guaranteed.
In the past two years, banks just ignored the risk problem, lent illegally and lent with zero down payment, which made many people take advantage of it. Now that the threshold of banks has been raised, auto financing companies have taken the opportunity to occupy most of the market. However, they also have a risk control problem. Without mortgage and guarantee, how can auto financing companies recover the car loans they have issued?
Although all the auto financing companies interviewed said that none of them had defaulted on the loan to buy a car, other companies in Nanjing also had individual cases. Therefore, risk control is absolutely necessary. Zhu Zheng of General Finance told Jiangsu Business Daily that every customer who applies for a car loan should not only review the written materials, but also conduct home visits to determine the actual situation of the lender and the real use of the loan. Shanghai headquarters will send specialists to handle the approval of loans and the payment of arrears.
Li Rui of Fulian believes that the problem of bank car loans has been frequent in the past two years, and the most important reason is that banks only do formal audits. "Lenders only need to provide written materials, and banks only do superficial audits, which leaves room for fraud." Now the audit of auto financing companies is much more realistic. "For example, proof of income is useless. Just provide the income record of the salary card or the personal income tax bill. " Only people who really buy cars can borrow money from auto financing companies; Only with real economic strength will auto financing companies lend the corresponding amount.
Even so, car loan loopholes still exist, and it is not difficult to cheat loans at cost. This situation is also very clear to auto finance companies. Yuyao, a spokesman for Ford Motor Finance Company, said that the current progress of auto finance is relatively slow, mainly because the domestic personal credit system has not yet been established. However, major companies have set foot in this market, which indicates that the potential of the future car loan market is limitless.
Nanjing auto finance is still immature.
There are 30 to 50 transactions every month, and car buyers still choose a one-time payment. A customer looking at cars in the exhibition hall of Fulian is telling the truth: buying a car is different from buying a house, and you have to keep a car after buying it. It costs more than 1000 to maintain a car every month, and it costs more than 2000 to repay. The burden is really not small. Moreover, the price of cars has dropped too fast, so it is not cost-effective to spend in advance.
Li Rui of Fulian believes that this is still because the concept of domestic consumers has not kept up. 70% of foreign countries buy cars through loans, while the domestic figure is only 15%. Now all major auto companies have set up auto financing companies in China, and they are also optimistic about this market.
The high proportion of foreign loans to buy a car is because the market there is relatively mature. The price of cars is not high, and the used car market is also active. At present, domestic auto financing companies are still far behind. First of all, the interest of auto financing companies is higher than that of banks, which increases the burden on consumers. The repayment method is also relatively simple, and you have to bear the penalty interest if you repay the loan in advance. If auto financing companies want to make customers change their ideas, they should start with their own services, provide benefits as much as possible, and let customers rest assured of loans.