TIANJIN – Auto financing will be the next bursting point after housing loans, education loans and personal loans. It was seven hundred billion in 2015 and will grow at a pace of 25 percent since then, according to Wang Xiaoyu, vice president of Guazi.com, China’s largest used car e-commerce platform.
Automobile is a kind of scattered assets which can be mortgaged, and can thus be said as a type of assets with low financial risk; secondly, auto financing is not a kind of investment as well and finally, used car financing market is an open competitive market, players are competing in revenue, price, operation assessment and appraisal. As far as the whole auto financing market is concerned, China’s auto financing is less than 30 percent, Western Europe 25 percent and the U.S. 70 percent, it can thus be said that there is a great potential in auto financing.
Guazi.com has the “one plus one plus one” platform through which it can provide special customers with its own specific financial products including loans quickly and easily. Guazi.com also cooperates with mature partners to create its standardized products and it has 40 partners across the country at present. Moreover, Guazi.com also opens its users and risk data to its partners so as to come up with more suitable financial products to service customers.
Big data plays a big role in used car innovation and Guazi also has four layers of data: internet open data, Guazi business data, user authorized data and third party cooperation data.
In terms of big data application, Guazi.com shortens used car sales from 32 days to 4.6 days. The whole loan appraisal is shortened from 3.7 days to 4 hours. Use car bad debt rate drops from 6 percent to 0.5 percent. Warranty compensation rate decreases to 1.1 percent. Used car appraiser efficiency also improves by over 80 percent. It will take used car appraiser about one hour to finish an assessment report.
Until now, 560 million people visited Guazi.com and hundreds of thousands of people finished transactions on Guazi.com.
Guazi.com also tested hundreds of vehicles with relevant assessment reports. Tens of thousands of people applied loans through Guazi.com and another tens of thousands of people enjoyed Guazi insurance services and maintenance data.