As one of the first auto finance companies approved by the China Banking Regulatory Commission (CBRC) in China, Zhonghua Group's financial services companies mainly provide wholesale and retail business through a dealer network. The wholesale service is aimed at 4S store dealers, while the retail service is aimed at ordinary car buyers.

When the third-generation "Qin" internal system ordering background was opened on time, more than 500 4S stores across the country placed orders in the "dealer management system" (DMS system) on the computer side.

The price of the third-generation "Qin" will be the same as that of the second-generation "Qin", and from today the second-generation "Qin" will be renamed the classic model and sold in the same hall, and the price will also drop significantly. Compared with the new generation model, the classic model will make a small range of shape changes, and the price reduction will be about 1-16,000 yuan, which will lower the average market price of compact sedans.

Through the DMS system, China Automobile can effectively manage and control more than 500 dealers across the country.

If the dealer wants to pick up the car, he must first pay a certain amount to the account designated by the OEM. You must know that a car is 100,000 yuan, and every time you pick up a car, more than a dozen cars arrive together, plus the vehicles in stock, and the funds squeezed are millions of dollars.

Such a huge financial pressure is a situation that dealers cannot afford.

Therefore, in the DMS system, dealers only need to deposit a certain amount of funds, and then China Auto Financial Services Company will give a loan credit line ranging from 500 to 20 million yuan according to the different performance of each 4S store dealership.

When a dealer places an order in the DMS system, the system will automatically monitor whether the dealer has sufficient loans in the account. If the loan amount is insufficient, the dealer can choose to borrow from China Capital Group.

For loans, you only need to deposit 10% of the loan margin into the designated account of China Capital to enjoy an interest-free period ranging from 30 to 60 days. The interest-free period for the best-selling models is 30 days, and the period for the unsalable models will be as long as 60 days.

Of course, according to the current hot sales of "Qin" and "Tang", the interest-free period of these two models is 30 days. If the dealer does not repay the loan in time during the interest-free period, then the interest rate will rise as a penalty.

After the loan is approved by the DMS system, the dealer can directly pick up the car from China Auto without any collateral, but the batch of cars must be placed in the warehouse or showroom designated by the OEM. Once the manufacturer finds that the vehicle is not in the designated place, it is deemed to have been sold, and the dealer must repay the loan in time. Otherwise, if you are found to have cheated on loans, you will face penalties from the OEM and be disqualified from the loan amount.

During the 30-day interest-free period, if a new car has been sold, the dealer must report the vehicle sales to the DMS system within an hour and fill in the customer information, and then transfer the remaining 90% of the car payment to the repayment account, forming a closed loop of sales.

This is actually a kind of credit loan, which gives different financial support according to the performance of the dealer and the manufacturer. Through the DMS system, you can accurately grasp the orders and inventory of 4S store dealers, and know the feedback of the market terminal. On the other hand, if the dealer is disobedient, he can punish the dealer by disqualifying the loan and other ways to achieve a certain degree of control.

Dealers, on the other hand, can easily get a loan with a line of credit, without the hassle of getting a bank loan, and there is no need to pay interest for hot-selling cars, which is a win-win move. More courageous dealers, after relying on the credit line from the main engine factory to get the vehicle, return to the local area and then mortgage the vehicle driving license to the bank to obtain a new batch of loans, so as to realize the flow of capital chain. Doing the work for yourself with the money from the manufacturer and the bank, of course, is based on the fact that the vehicle sales are going well.

In the current cold winter of the car market, once the sales are not smooth, many 4S stores have closed down and run away, which is the consequence of the broken capital chain.

"Hell, it's locked again!"

A dealer boss of a Zhonghua 4S store was locked by the system after ordering 35 third-generation "Qin". He has to pay more for the goods before he can continue to generate orders in the background.

The system shows that he has used up the 12 million yuan of the loan credit, and if he wants to continue to place an order, he must deposit additional money into the account. Most of these 12 million have been used on the second-generation "Qin" and "Tang" before, and a large number of cars have not yet had time to be shipped, and now the amount of ordering the third-generation "Qin" is insufficient.

"Hurry to the bank and deposit the 4 million in the company's account. The third-generation 'Qin' is guaranteed to sell well, and the early delivery of the car can achieve a price increase. ”

The boss hurriedly said to the person in charge of the finance department.

Finally, in the afternoon, the system shows that the funds have finally arrived, and you can add orders.

"Hey, why can you only buy 5 cars, and you can't generate orders anymore!"

Clicking the mouse, he found that the system had not been able to purchase more quantities, and the boss wondered.

Suddenly, a message popped up in the background system, informing that because the number of orders placed by dealers far exceeded the factory output, the DMS system would lock the order from now on, and each store was only allowed to order a maximum of 40 third-generation "Qin" within 45 days, and the previous orders of more than 40 vehicles were valid. We will notify you when the order schedule will resume.

"Oh, it's a pity, I saw a lot of money missing. ”

Patting the table, the boss felt sorry that he had missed the opportunity to increase the price of more "Qin".

The enthusiasm of more than 500 dealers exceeded Han Hao's expectations, and they placed orders for more than 20,000 vehicles in one day. You must know that Huaxia Hongguang also completed 20,000 orders on the first day, but this is based on more than 2,000 dealers. And the third generation of "Qin" only took more than 500 dealer 4S stores to complete the entire huge number.

According to the usual practice, dealers only order 5-10 vehicles to go back to test the waters, but they did not expect to usher in a big outbreak this time, and the loans of financial companies were used to the fullest. The expected order was around 3,000-5,000 vehicles, but it broke through the 20,000 mark.

Although the production line has been expanded, because the second-generation "Qin" has become a classic model for sales, thanks to the Corolla launched in China, its vitality is still very tenacious, and there is no sign of decline. Therefore, in fact, Zhonghua Automobile needs to increase its production capacity in the car field twice to meet the needs of the market.

The second phase of the new site in Dinghai has already begun, but the lack of capacity will continue for a long time. The third-generation "Qin" is expected to limit production in the next nine months, and the monthly production capacity will remain at more than 10,000 units, which cannot fully meet the needs of the market.

The lack of production capacity also gives 4S stores more reasons to increase prices.

Consumers are naturally crusading against the price increase, because it makes them pay more money. If you don't increase the price, you need to wait a long time to pick up the car, or even can't pick up the car, which makes consumers very dissatisfied.

But in the eyes of dealers, this is a market behavior, and one is willing to fight and one is willing to suffer. Everyone scolded the dealer for asking for a price increase to pick up the car, but the dealer was also full of complaints. The people saw only the thief eating meat, but not the thief being beaten.

Dealers are controlled by OEMs and are often forced to buy some vehicles that do not sell well, just like the SAIC Volkswagen 4S store has to buy the hard-selling two-door Gower in addition to the hot-selling Santana. The two-door Gower, a sedan originating from Brazil, was not adapted to the Chinese market, and could not sell one for several months, and finally had to be sold at a reduced price.

The cost of this loss has to rely on the price increase of hot-selling cars to recoup the cost.

In the current cold winter of the auto market, cars that cannot be sold have been piled up in warehouses, but OEMs will continue to produce vehicles in order to ensure their own profits, and then force each dealer to buy them. If you don't buy the goods, you will be greatly deducted points if you fail the evaluation at the end of the year, and even if it is serious, you will cancel the qualification of the dealer to act as an agent.

"In the early stage, I invested millions of dollars in building a store, and I had to endure the continuous exploitation of the main engine factory, and I could only rely on temporary price increases to regain blood. Otherwise, just by maintenance, it will take a lot of teenagers to pay back. ”

This is the statement of one of the 4S store bosses.

For dealers, Zhonghua Group is in a state of turning a blind eye, because in the context of the current brutal growth of the auto market, it is necessary to rely on a strong dealer team to seize the market. Coupled with the huge size of China's auto market, as an OEM, we have to feed the dealers and make them motivated, so we have to have an ambiguous attitude towards this.

Only when dealers make money, they will be more motivated to open up the market and provide more satisfactory services. However, the practice of raising prices can only be a temporary strategy, and with the fierce competition in the market, it will be adjusted by the market.

In parallel with the provision of loans to the wholesale business of dealers, retail lending services for ordinary consumers were also launched.

After the previous Zhonghua 4S store boss was locked, he clicked on the system to check the situation of his store's consumer loan car purchase service.

"Why is it that the number of people who take out loans to buy cars this month is one-third less than last month, this is not good! From today onwards, we must try to persuade customers to adopt the loan installment payment model, and the interest-free car loan will be quickly approved. ”

The boss looked around, and quickly called the operation director of the store to order.

Unlike banks, China Capital Services provides loan services to ordinary consumers in that the application conditions are greatly relaxed, and the loan ratio and repayment period are also looser than those of banks, and the lending speed is faster. The down payment can be made to 2 percent, and the repayment period is as long as 5 years, which is much better than the bank conditions. In addition to guaranteeing the car capital, lenders do not need to mortgage and find a third party to guarantee it, which is a hassle for many consumers.

Of course, the so-called interest-free is just the manufacturer's discount, and the loan needs to pay a handling fee, and many interest-free car loans are actually enough to deduct the interest amount.

However, if you have a stable income, you can't get enough money for a while, and you want to spend in advance, it is still an acceptable way to take out a loan to buy a car.

4S stores can take a cut of the financial loan business, so this is also a big profit point for them.

This kind of credit-based loan service is a model modeled after the mature foreign auto market, but in a society where China's personal credit system has not been established, many car loans have become bad debts.

In the cold winter of the auto market, dealers continue to reduce prices and promotions, coupled with the impact of macro-control of personal income, many loan owners simply do not repay the money, the big deal is that you take back the car. Many banks have formed a lot of bad debts because of car loans. These car owners don't pay back the money even if they have it, and they think they can't do anything to themselves.

Chunghwa Group's vehicles are relatively hot, and the average selling price is not high, the price in the second-hand market is relatively strong, and the bad debts are not very serious. At least in China Capital Corporation, the proportion of bad debts is controlled to a certain acceptable level, and profit coverage is still achieved.

However, this kind of old-fashioned practice of not paying debts can only rely on the state to come forward to establish a credit system covering the whole society. Otherwise, in the current situation, the debtor can continue to live a chic life as long as he changes places.

"From the beginning of the design of the car, every chain can squeeze the last drop of profit through financial services, which is why the net profit margin of financial services companies exceeds that of automobile OEMs. ”

As the financial steward of Chunghwa Group, Yin Qingxun said.