According to iResearch, the penetration rate of auto finance leasing in the United States in 2017 was 46%, while that in China was only 5%. The reason why the penetration rate of auto finance leasing is low is that it has only emerged in China in recent years, which is related to the development history of auto finance in China. Since 1995, financial institutions have begun to directly participate in the auto credit consumption business. Although it is only an attempt within a certain scope and scale, due to the fact that China's personal credit system has not yet been established, relevant financial institutions also lack experience and risk control methods, and problems occur frequently.
So much so that the People's Bank of China ordered the suspension of auto credit business in 1996. In 1998, the People's Bank of China issued the "Administrative Measures for Auto Consumption Loans", and then issued the "Guiding Opinions on the Development of Personal Consumption Credit" in 1999. So far, auto credit consumption has been officially recognized by the regulatory authorities. Subsequently, due to the increase in domestic private automobile consumption, automobile consumer credit sms marketing service developed rapidly, and the credit balance increased from 2.9 billion yuan at the end of 1999 to nearly 200 billion yuan at the end of 2003. Excessive consumption of auto credit has also brought problems.