Where is the difficulty of auto financial risk control?

Automobile finance can be roughly divided into two categories, one is car dealer loans, and the other is consumer loans. Car dealer loans are mainly used to open stores and buy spare parts and cars. Consumer loans are mainly the demand for car purchase. So how difficult is this risk control for both borrowers and lenders? How to do it well?

The first difficulty of risk control is probably the issue of credit reporting. Bad debts such as fraudulent loans and non-repayment of loans are almost common pain points in the financial industry.

Another difficulty of risk control is post-loan collection. If the risk control audit is not done enough, there will be overdue sequelae, and collection will occur. "Collection is an indispensable link, and we mainly collect it by telephone. If the phone can't get through, locate the target car through the vehicle GPS and drive away directly. Vehicles belong to movable property and have strong mobility. Although personal credit has passed the audit, car damage still happens frequently, and it is more difficult to collect it. So some companies will install GPS in their cars to locate vehicles.

At present, China's auto finance market is still dominated by commercial banks, auto finance companies and auto manufacturer finance companies. However, with the extensive involvement of financial leasing companies, car leasing companies, consumer finance companies and internet finance companies, and the increasing use of microfinance guarantee companies, pawn shops and third-party payment institutions as loan intermediaries, the entire auto finance market has become more and more active, which naturally leads to fierce market competition and frequent fraud risks.

Main risk points of auto finance:

1. Fraud risk: Lenders forge personal identity loans and impersonate others. Because the debt subject does not exist or is impersonated, it is difficult to recover and the risk is great. Lenders provide false personal information to beautify personal qualifications, but the repayment ability does not match, and the risk of overdue is high;

2. Credit risk: the borrower's default risk, which leads to economic losses due to the borrower's poor credit awareness or multiple liabilities and failure to fulfill the obligations in the agreed contract at maturity;

3. Risk of loan use: If the loan is operated illegally after buying a car, it will be easily hit by the regulatory authorities and the income will be unstable. The borrower is in poor financial condition due to multiple debts, and immediately repays other debts after obtaining the loan.

4. Risk of repayment source: overdue risk caused by factors such as the borrower's location, industry, average salary and income source.

These problems have led to the criticism of auto finance risk control ability, so it is very necessary for auto finance industry personnel to learn professional knowledge through professional courses and improve their risk control ability.