China: buyers could seek credit over cash for new cars image

The world’s largest automotive market is still a rather undeveloped consumer market, viagra sale as new car purchases were long seen as a measure of success – which means that most purchases were made with cash.

With numerous problems and threats – from the need to develop joint-ventures with local automakers to the fact that all segments have become increasingly competitive, buy cialis local and especially foreign global automakers seek to defend their market share and increase earnings – addressing now the changing car finance segment.

After a period of huge boom, that allowed China to overthrow the US from its long held title of the world’s biggest auto market, the country’s automotive industry is entering a period of consolidation and maturity – and so are the customers.

Younger people in their 20s and 30s, are now increasingly targeting big item purchases like cars towards credit – not cash – a move that would have been unheard of just a decade or so ago. That prompts carmakers to also consolidate their financing units on mainland China.

The car companies are also luring customers towards credit purchases as a means to boost decaying revenue – as the incentives war also took hold of China’s auto market – besides other moves in that direction, like investments into the maintenance and repairs, vehicle leasing and sales of accessories and parts sectors.

Via Reuters