1. Application of Internet Technology in Auto Finance
Internet technology is influencing our daily life in a subtle way. Under the tide of "Internet +", the reform of the auto finance field led by Internet technology is proceeding in full swing, and will become the general direction of the future development of the automotive industry.
(1) What is auto finance
Auto finance mainly refers to financial services related to the auto industry. It usually exists as an auto finance company affiliated with auto manufacturers. The purpose is to promote the parent company's auto sales and provide related financial services for all aspects of auto production. SAIC General Motors Finance Co., Ltd. is the first auto finance company in China. The increase in auto sales has brought huge profit margins to the development of auto finance, with an average profit rate of up to 35%.
(2) What is Internet auto finance
With the expansion of the capital scale of the auto market, the market has also opened its doors to Internet auto finance. The combination of Internet technology and auto finance has produced a colorful spark: On January 16, 2018, the cash loan listed company Qudian launched the Dabai car instalment platform; on March 20, Dianniu Finance, which is mainly engaged in car loans, Nasdaq of the United States is listed; since 2017, companies such as Sunflower and Renren Auto have completed hundreds of millions of yuan in financing. Baidu, Alibaba, Tencent, JD.com and others have participated in this horse racing sport. Internet auto finance has sprung up like a mushroom in the auto finance market. Its application is mainly reflected in two aspects, one is the Internet auto finance relying on auto e-commerce, and the second is the Internet auto finance platform.
1. Internet auto finance relying on auto e-commerce
Automobile e-commerce companies use our inherent advantages to apply the payment methods we paid on Taobao to car payment methods. The specific operation modes are divided into B2B, O2O, B2C, C2C and other modes. Among them, B2B represents enterprises It is Amoy.com, the representative enterprise of O2O is to buy and buy cars in China, the representative enterprise of B2C is Dasou, and the representative enterprises of C2C include melon seeds and Renren cars.
2. Internet auto finance platform
The Internet auto finance platform is one of the important Internet participants in auto finance. It has a faster loan approval rate than traditional financial institutions. Unlike e-commerce platforms, Internet auto finance platforms are usually also direct participants in auto finance, that is, companies It will carry out consumer loan and advance business itself. Because it uses its own funds, compared with the interest-bearing assets of other financial institutions, the Internet auto finance platform has a lower asset cost.
2. Development status of Internet auto finance
(1) The impact of the development model of the automotive e-commerce platform on the company's finances
In the development model of the auto e-commerce platform, we use the O2O model of buying and buying cars in China to analyze the profit index.
1. Buying and buying a car business and business model in China
Buying and buying cars in China is the company's national large-scale O2O automotive e-commerce platform, and its products mainly include special-priced explosion models and quasi-new cars. Relying on the long-term accumulation of the auto industry, Shenzhou bought and bought cars creatively launched a new car consumption model of "first enjoy and then buy", leading the development of the auto industry. Compared with the traditional 4S store sales model and the existing car e-commerce platform diversion commission model, Shenzhou buys and buys cars using a combination of online and offline purchase and sales models, obtaining vehicle sources from multiple channels, and through a variety of online channels Divert consumers effectively to offline stores to complete terminal sales.
2. Analysis of the financial contribution of the car purchase business of China to China Automobile
(1) Operating capacity analysis
According to the financial report data of UCAR this year, we can see that the company's cash cycle increased by 1.75 times in the first half of 2017 compared with the end of 2016, and the company's capital turnover rate decreased. The reasons are as follows: First, because of the reduced inventory turnover The inventory turnover period surged from 32 days to 90 days. This number increase was attributed to the increase in the car buying and buying business in China. UCAR prepared multiple models for consumers through underwriting and consignment, leading to an increase in inventory. The second reason is that the company's receivables turnover days are on the rise, which is caused by the company's "first enjoy then buy" consumption model. In order to shorten the company's cash turnover period and increase the efficiency of capital utilization, the company should increase the number of days of accounts payable turnover, increase the credit period and negotiation ability with suppliers.
(2) Profitability analysis
Judging from the financial data since 2015, for China Uber, after joining the China car buying business segment at the end of 2016, the net profit of sales climbed linearly. In the past six months, the net profit growth rate increased from the original 3.85% 80.61%. This is attributed to the "offline experience, online purchase" sales model that has injected innovation into the enterprise. It is predicted that in the next two years, China Uber will turn losses into profit, and its net profit will increase substantially. Uber China has officially started buying and buying cars in China since the second half of 2016. Since the official launch of the operation, Shenzhou Buy and Buy has achieved rapid expansion of the sales network and rapid growth of sales due to its good brand effect and excellent marketing and promotion capabilities. In the future, the scale of China's car buying business will continue to expand, and its market share will continue to increase, which is expected to become the preferred car e-commerce platform for consumers.
(2) The impact of Internet auto finance platforms on company finance
The launch of the Internet auto finance platform takes the example of buying and buying cars in China. This B2C e-commerce platform has allowed China UCAR Group to step out of a differentiated path in the field of automobile e-commerce, which has led to an increase in the trading platform business volume from 2016 to 2017 10%. Why does the e-commerce platform of buying and buying cars in China allow China UCAR Group to raise up to 7 billion RMB in just one year? This is due to two features of the e-commerce platform for buying and buying cars in China.
One is the "buy-before-buy" car purchase model. This car purchase model originated in Europe and the United States. Only Mercedes-Benz has adopted this consumption model in China. Shenzhou bought and bought cars first to adopt this consumption model. The reality is unprecedented. The advantage of "first enjoy before buy" is reflected in the low down payment and low monthly supply. Consumers only need to pay 15% of the car as the down payment to drive away their favorite cars. The 3-year long loan period guarantees that consumers ’monthly supply is only 30% of 4S stores. The demand for car purchases is no longer limited by personal current income and cash deposits, allowing the consumer group to expand to the working class. In this way, the company has expanded the consumer group and class of automobiles and increased the sales revenue of the automobile business segment, thereby helping to increase net profit.
The second is that the platform uses underwriting and agency sales to enrich the models of cars for sale. For young groups who like to change cars frequently, this car purchase model can optimize the structure of the car type, which can not only provide customers with cost-effective products, but also It can also meet the needs of young people to show their personality and pursue fashion, which increases the sales revenue of products.
We can use a quantitative model to build a capital forecast model on the basis of Shenzhou Uche ’s balance sheet and profit statement by item-by-item analysis: Under the assumption that sales revenue grows at a rate of 90% every six months, we can see The 7 billion funds raised by China Uber from 2016 to 2017 will greatly meet the forecasted capital requirement of 2.1 billion at the end of 2017, indicating that the consumption model of the China car buying platform has improved the company's fund raising efficiency. Judging from the 2016-2017 operating income growth trend, in only one year, the operating income of China ’s Uber Group has increased by 70%, and the gross profit margin of sales has also increased from -26% to 12%. The advantages of Internet sales platforms The emergence shows that the e-commerce platform has greatly promoted the growth of car sales and provided a new channel for the company to raise funds.
3. Some suggestions for the development of auto finance in the context of the Internet
(1) Focus on the interests of consumers and transform consumers' traditional consumption habits
Although the launch of the auto e-commerce platform has been sought after by many young people and working class, auto e-commerce as a new channel for car sales has not yet been familiar to consumers. Therefore, auto e-commerce should promote consumer e-commerce consumption concepts to consumers through various promotional activities.
(2) Absorb the cooperation of traditional automobile sales channels to achieve mutual benefit and win-win results
At present, auto e-commerce is still in the exploratory period. Stakeholders in traditional auto sales channels should participate in a cooperative attitude. This will not only increase the transaction volume through online transactions and promotional activities on the auto e-commerce platform, but also help to open up auto e-commerce. The offline link of the commercial line, to realize the offline pick-up or maintenance service in O2O.
(3) Continue to explore innovative business models and integrate relevant resources
The existing auto e-commerce has not yet realized the functions of full payment and auto delivery, so the business model of auto e-commerce still needs to be improved. Due to the particularity of auto e-commerce, it can only achieve online and offline docking through complementary cooperation with traditional sales channels to jointly support the development of the auto e-commerce market. Tmall Auto and Ant Financial launched the Yu'ebao online payment deposit in the "Double Eleven" in 2014, and the offline 4S shop's car pick-up transaction model already has the characteristics of auto consumer loans. I believe this is also the major auto electricity The future development and improvement trend of business platform.
