2010-04-29 14:46

GM, Toyota

Ford, General Motors Co and Toyota Motor Corp's local financing units provide loans to consumers as well as dealers, including those that are unable to borrow directly from banks.

Chen Guangjun, general manager of the Beijing Zhong Ye Toyota dealership, said about 12 percent of his customers buy on credit. The outlet accepts applications that are ultimately handled by Toyota's financing unit.

Honda doesn't have a financing business in China, so dealers such as Beijing Fanlu Business & Trading Co introduce buyers to a bank if they need loans, General Manager Wen Hai said.

In China, 80 percent of auto loans come from banks, while in other countries 80 percent are from auto financing companies, the State Information Center's Xu said.

"The number of people using loans will rise," said Tao Ye, president of the company that owns Beijing Zhong Ye. "In particular, there are a lot of people who use financing to buy second cars."

The government is considering encouraging auto loans even as it targets a 22 percent reduction in overall new lending from a record $1.4 trillion last year.

Bloomberg News