Zheshang Research Association Liu Hua: Thousands of P2P Spends 2.5 Trillion Car Finance

Auto finance ushered in a period of rapid development. According to statistics from the National Information Center, by the end of 2016, China’s car ownership has reached 190 million vehicles, and this figure is expected to reach 250 million by 2020, and the auto financial market will exceed 2.5 trillion yuan.

According to the Zheshang Research Association, the scale of China’s auto financial market exceeded RMB 700 billion in 2016, the penetration rate of auto finance is only 17%, and the penetration rate of used-car finance is less than 5%, which is a far cry from the foreign penetration rate of 80%. The development prospects are very impressive.

Such a huge automobile financial market has made Ding Youcai, Tuodao Jinfu and other financial institutions rush into the market. The data statistics of Yingcan Consulting show that at least 1136 P2P platforms in China had involved in car loan and other related businesses in 2016, and the current car loan market is still far from being saturated.

P2p car loans welcome explosive growth

The compliance reform of the online loan industry objectively boosted the growth of the automotive financial market.

According to Liu Hua, the founder of the Zheshang Research Association and a well-known financial writer, since August 2016, the net loan industry has ushered in the "1+3" (one approach, three guidelines) system, the basic framework has been released for implementation, and the entire mutual industry is Rapidly open the industry reshuffle mode during rectification. Its "1+3" system reforms the lending quota in the sector, which allows the "small and beautiful" quality projects below $200,000 to become popular. At this time, the loan business with low loan amount has naturally become the direction of transformation of many P2P platforms.

At the same time, consumers have practical needs for auto finance. In recent years, China’s automobile ownership has soared, and the introduction of policies and regulations such as “Used Vehicle Circulation Management Measures” and “Automotive Sales Management Measures” has loosened the restrictions on local relocation, used car taxation, and property registration, and has greatly enhanced auto finance. Market activity.

For investors, it is easy to find that the yield rate of the car loan platform is generally higher than the industry average, which also leads to frequent occurrence of second-second marks and funds standing on many platforms, which shows that car loans are hot on the capital side.

In 2016, the transaction volume of the entire car loan industry reached 500 billion yuan, and the growth rate of the car loan platform's trading volume was 143% year-on-year, with an annual turnover of 161.6 billion yuan. With p2p online lending entering the inventory phase-out stage, in April 2017, there were 2,214 net loan platforms in operation in the country, of which 590 (only statistics on the number of p2p online loan platforms that issued car loans in the current month) involved car loans. The proportion is 26.65%, and the total size of national car loans is 21.585 billion yuan, accounting for 9.60% of the total scale of online loans. According to incomplete statistics, as of the end of August this year, nearly a thousand P2P platforms have been involved in the auto finance industry.

Taking Ding Youcai, a wholly-owned internet financial platform owned by Han Ding Yuyou, as an example, as early as September 2015, Ding Youcai established three major asset classes: smart city, auto finance, and consumer finance. In order to create a comprehensive Internet investment and wealth management platform that covers all assets, we provide investors with more, better and more intimate investment and wealth management services.

On March 19, 2017, Ding Youcai officially launched a depository system for banks. The platform was fully deployed from the consumer financial management side to the lending side, and strived to be the first choice for financial investment platforms including auto finance. From the initial screening of assets to the multi-level audit of projects, Ding Youcai strictly controls the assets and implements innovation and optimization of Internet finance.

It is reported that in the new financial field, Han Ding Yuyou will focus on reinforcing the construction of innovative financial sector, relying on and deeply integrating the basic flow of people and the full and reliable commercial data brought by powerful offline resources to convert offline people into Internet users. Expand the marginal effect. As Ding Youcai, the representative of Han Ding Yuyou's layout in the new financial field, has also taken consumer finance such as car loans as the main battlefield for development, and has exerted its full force on the Internet financial ecosystem.

Strict risk control and long-term development

The increasingly fierce competition in the industry can not help but let us begin to worry: where is the future of asset security in car loans?

According to Liu Hua, promoter of Zheshang Research Association, Internet auto finance faces bottlenecks and problems such as lack of credit system and missing data in big data risk control. In terms of risk control, usually many platforms will put together marketing and risk control. Therefore, analysis, supervision, pre-lending, post-lending, and post-lending analysis should all be done. An early-warning system should be established to address potential risks in advance so that the platform can be strong enough. Business competitiveness.

Lu Yuquan, the car's CEO, pointed out that as a low-frequency, high-volume business category, auto finance has a limited sample size of data and it is difficult to achieve the purpose of establishing a wind-control model in the short term. Therefore, the Internet auto finance company will rely on its own data samples and data samples collected by third-party companies to establish a wind-control big data model. However, this kind of risk control model is limited to the number of data samples, and the model is not yet mature.

Mr. Liu Hua said in this regard that the value of the car itself is relatively small. For the platform, the overall risk will be decentralized. Compared with the real estate mortgage, assuming that one hundred million funds can be lent to 20 people who use house mortgages, one hundred million can be lent. The risk of 1000 people mortgaged by vehicles is one thousandth and one-tenth. The overdue rate and bad debt rate are very high.

In addition, many car loan platforms on the market are basically 6 to 90% of loans to mortgage vehicles. Once the car loans are overdue, the risks can be minimized because vehicles are used as collateral.

Xue Hongyan, a senior researcher at Suning Financial Research Institute, wrote that the P2P car loan faces two major problems:

Firstly, for the platform of the car loan business to be transformed, it will be found that the car loan business is a typical heavy operating model with a high threshold, especially for the P2P platforms that are accustomed to online matching, through the layout line cut-off car Loaning business is not easy.

Secondly, for the platform of the loan-paying business of special vehicles, the business model itself is also faced with a problem that the business model is too monotonous. With the Internet giant accelerating the layout of the automotive market, the threshold for auto consumption loans will be higher and higher, and the time left for these car loan platforms is really not much.

According to Liu Hua, promoter of Zheshang Research Association, auto finance serves the real economy, and auto internet finance cannot be separated from the real economy. We believe that the combination of production and finance under the line will be one of the directions for the continuous development of auto internet finance.

There is no shortage of funds in the current shortage of venture capital markets, and the oligopolistic battle of Internet auto finance is coming.