Chinese Benefit from Car Financing MethodsAs private cars become more popular among Chinese people, so do the methods of car financing.More than 100,000 people benefited from car financing services last year, or six percent of new car owners, according to a report by the authoritative departments. Experts estimate that over two million people will buy new cars this year, up 13 percent from last year. Some 200,000 people will seek help from car financing. Car financing, aiming to stimulate the potential consuming ability by providing loans, mainly refers to related financial services for cars, including customers' loans from banks, dealers' fund-raising and infrastructure investment. People from financial circles hold that car financing will propel the development of manufacturing and banking, contributing to the prosperity of capital. "Car financing services play an important role in modern economical systems," according to Wayne Booker, vice chairman of Ford Motors. He said that Ford will help China to upgrade its level of financial services and develop economic infrastructure. So far, many Chinese banks have chosen to cooperate with creditable car dealers to promote car consumption. Non-official financing companies and domestic enterprises have also taken an active role in providing financing services. The Chinese government listed the automotive industry as a pillar industry in the Tenth Five Year Plan period (2001-2005), and decided to give full play to car financing. "China will quicken the pace of financial reform. And car financing is a major part of personal loans," Dai Xianglong, governor of the People's Bank of China said here during a recent forum. Economists pointed out that appropriate car financing methods will benefit Chinese people. |
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