Mexican Media Brands
Chinese Car Buyers Turn from Cash to Credit
Young Chinese car buyers are driving the country's slow shift from cash to credit, an option virtually unheard of a decade ago, Reuters notes.
#economics
Share
Young Chinese car buyers are driving the country's slow shift from cash to credit, an option virtually unheard of a decade ago, Reuters notes.
Only 15% of Chinese car buyers today opt to finance their purchase instead of paying cash. That compares with about 70% who finance in the U.S. and other developed markets.
But almost all Chinese consumers who do finance their vehicles are young. One lender tells Reuters the difference is demographic and generational. China requires credit purchasers of big-ticket items to make a 20% down payment.
Most major foreign carmakers have established retail financing units in China. Reuters says those operations have issued a relatively modest 800 million yuan ($129 million) in asset-backed securities so far this year.
The China Assn. of Automobile Manufacturers estimates that the auto financing industry in the country will more than double to 525 billion yuan ($85 billion) by 2025.
RELATED CONTENT
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.