China Auto Finance preparation PDF

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China auto case operation case material study. Done before class...

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China Auto Finance Key problem 1. CAF had a long cycle time for processing application. Typically 7 days from application to payment, local financing company only need 4 days. The long cycle time of application process led to dealers’ dissatisfaction. 2. Inconsistent credit decision from CAF credit analysts. Credit analysts were inconsistent in vetting applicants even with similar income and employment background. 3. CAF use agent in different cities to sign financing contracts with end customers and to complete the financing application process, but the agents’ inconsistent service quality and slow response time result in dissatisfaction for both dealers and customers. 4. The retail financing team lack of customer service mindset and communication skill， sometimes led applicants to withdraw loan application or even give up purchasing a car.

RE-DESIGNED FLOWCHART FOR AUTO-FINANCING APPLICATION TO CAF

Individual customer purchases vehicle in dealer’s showroom and expresses interest in financing.

Dealer helps customer to prepare financing application for CAF.

Dealer inputs customer’s personal and financial information into CAF financing application system. Cycle time from application to payment CAF’s credit analyst vets application base on standard financing application vetting process and procedure

CAF’s retail division approves customer’s financing application.

CAF’s retail division tells dealer to facilitate customer in signing the financing contract and payment of deposit.

CAF makes payment to dealer, and dealer releases vehicle to customer after lien registration is completed.

CAF’s retail division rejects customer’s financing application.

Dealer informs applicant that his or her financing application has been rejected...