All About Auto Loan You Should Know(3)
In October 2003, the China Banking Regulatory Commission published the Measures for the Administration of Automotive Financial Institutions and the Regulations on the Administration of Automotive Finance Companies in November, in accordance with commitment to open up the auto consumer credit market. On December 29th, just two months after the announcement, Country approved the establishment of three auto finance companies, SAIC General Motors Finance Co., Ltd., Volkswagen Finance Co., Ltd. and Toyota Motor Finance Co., Ltd. Less than a year later, SAIC General Motors Financial Co., Ltd. opened its doors.
A fact shows that auto finance companies into the domestic auto consumer credit market to do business, breaking the domestic banking industry unified auto credit world situation has become a reality.
Risk Prevention
1, the introduction of competition mechanism, and actively cooperate with a number of insurance companies and distributors.
In the early days of the automobile loan business, the majority of the auto loans customers came from the joint promotion of insurance companies and auto dealers, and some banks neglected to investigate the loan customers directly because of their trust in insurance companies and dealers. Also because of the car dealer credit situation is uneven, in the auto loan business cooperation links, there is no joint and several liability, so to the dealer unprincipled to the AgBank to promote customers caused by the opportunity to introduce some customers who do not have economic strength to the bank, to the bank auto loans on schedule to recover buried hidden dangers. Banks in cooperation with insurance companies, "silver insurance cooperation" single object, the vast majority of the auto loan business is with the local "people insurance" cooperation, this kind of business cooperation almost "unique", resulting in the bank in the course of doing business and loan recovery on the insurance company has produced excessive dependence, if the insurance company claims is not timely, will directly cause the increase of banks, which is one of the basic reasons for the formation of non-performing loans. Therefore, only through the introduction of competition mechanism, adhere to cooperation with a number of insurance companies, and in accordance with the credit situation, the cooperative car dealers to make careful selection and clean-up, in order to create a good business cooperation environment for the healthy development of the auto loan business, completely change the bank in the business cooperation in the passive situation, master the initiative of the work.
2, through the "three-way" consultation, the establishment of "automotive loan margin" system.
When banks sign "tripartite" cooperation agreements with insurance companies and dealers, they must clarify their respective responsibilities and obligations, and safeguard the interests of the banks by implementing the "auto loan margin" system. As a loan bank, we must do a good job of pre-credit investigation work to customers, to lay the foundation for the security of credit funds. For the emergence of non-performing loans, to actively carry out collection, which is not only the need for insurance claims, but also the bank's own responsibility. In addition to participating in the credit investigation of the borrower, the insurance company must also undertake to be liable for default on the borrower's outstanding loans for more than three periods. In order to ensure the timely payment of non-performing loans, banks must require insurance companies to open a "auto loan default compensation deposit" in the bank, maintain a certain amount of margin, for more than three periods of outstanding loans, timely withholding from the account. If the insurance company does not make up the balance of the special account in full in time, it will wait for it to be completed before continuing business cooperation. Car dealers, as the suppliers of vehicles, must bear certain responsibility for customer credit and take full responsibility for the quality of vehicles. In order to ensure the smooth development of the business, dealers must be required to open a "auto loan vehicle quality guarantee" special account in the bank, according to the number of vehicles distributed according to a certain proportion of deposit, for the problem vehicle repurchase and the failure of non-performing loans due to vehicle quality problems deduction.
