Demand for Car Financing Leases and Rapidly Developed Car Consumption in Third and Fourth-tier Cities

Recently, the "China Auto Finance Leasing Development Report 2017" (hereinafter referred to as the "Report") was released. The report closely focused on the analysis of China's auto industry market, auto finance, auto financing leasing, and car lease innovation cases, and elaborated on the development prospects of the auto financing leasing industry. And the unique perspective of the direction. The report believes that the future potential of China's auto financing leasing market is huge, the region is sinking, and the layout of the third- and fourth-tier cities has become the focus. The rise of emerging new retail platforms has enabled Internet-enabled car rental vehicles to become a new force in the growth of the auto financing leasing market. The data shows that the number of third and fourth tier cities on the platform accounted for 38%, and the transaction volume showed an upward trend.

At present, the penetration rates of auto financing leases in the United States and Germany reach 46% and 21%, respectively. The penetration rate of auto financing leases in China is relatively low, less than 3%, and there is huge room for future growth. From 2009 to 2014, the scale of China's auto financing leasing market achieved a compound growth from 1,000 to 208,000 units and a 191% growth rate. The market has full potential. The report pointed out that from 2016 onwards, auto financing leases have accelerated development, consumers are mainly concentrated in second-tier and third-tier cities and below, and consumer enthusiasm in third-tier cities has been rising.

In summary, China's auto financing leasing market has huge space and high growth potential. Third and fourth tier cities should become the main layout. However, according to current data, the main reason for the slow development of auto financing leasing is that low-tier cities have not been fully realized. Excavation: On the one hand, the credit system coverage in low-tier cities is weak and development is limited; on the other hand, the channels for the traditional car market are not sinking enough.

In terms of channel sinking, the Internet has taken advantage of the Internet's thinking and new retail model to avoid the drag caused by the heavy assets of the traditional auto channels. By cooperating with the core automotive OEMs, it has broken down the traditional channel boundaries with a digital rich and varied car purchase options to reduce assets. The new retail model experience shop provides a powerful consumer scene to achieve the subsidence of low-tier cities, the online service + offline experience complement each other to fully enhance the user car experience, help the host brand to achieve channel sinking.

According to the person in charge of the new car network at Maoye, this year, a new car service system has been built nationwide, especially in the third and fourth tier cities, so that the low-threshold car model of financial leasing will benefit more consumers and help host companies quickly achieve market subsidence. .