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
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future