The China Banking Regulatory Commission wants to make it easier for you… yes YOU… to get into a new car. Gasgoo reports they've released new regulations on auto leasing companies that will allow them to lease cars to Chinese consumers. The new regulations allow finance companies to lease cars to individuals or fleets; previously they were only allowed to loan money for purchases to individual buyers or auto companies. With the vast majority of Chinese auto purchasers paying cash for their new cars and buying only what they can afford, it's going to be interesting to see if the new regulations will entice consumers to lease a more expensive vehicle than they could buy. It leaves one to wonder, though, what the penalty for going over the mileage limit will be in The People's Republic.
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I suspect that a big dose of capitalist leasing will drive domestic sales through the roof!
Do we think the penalties for not keeping up with the payments might result in slightly more than just repossessing the car…
Oh joy!! The Chinese may soon learn the pleasures of American overspending….
I wonder if they’ll play the same games they do here in the U.S. with Cap. cost and inflated residuals….It should be very interesting to see the statistics on these lending products in about 4 to 5 years from now.
“the vast majority of Chinese auto purchasers paying cash for their new cars and buying only what they can afford”
Bunch of &0###&& communists.
It was only a question of time before leasing would start and gain popularity in China with captive finance companies participating in the leasing.
The auction house have a presence in China.
As China and India consume more fossil fuel through easier terms in China, and inexpensive cars in India. Fossil fuels become a scarcer and more expensive commodity.