Large Car Manufacturers Promote Loans in China
A much untapped market is the Chinese auto buying public. Unlike US car buyers were 85% of car purchases are financed or India where 65% of car purchases are financed, China pays cash for cars. Only 10% of the Chinese car buying public finances their automobiles according to Bloomberg’s Businessweek.
The Other Way Around
The American and Indian consumers should take a page out of the Chinese car buying book. Save money and buy cash. Why go into debt over a commodity that starts to depreciate the moment you get into it.
Because the Chinese consumer prefers to save money and buy items only when they can afford it, I wonder how much money on advertising, rhetoric and persuasion the large auto companies will have to shell out in order to sway the Chinese public to abandon long standing traditions.
Struggling American Families
The American spendthrift mantra of buy now, pay later doesn’t always work. Too many Americans are paying now for foolish impulsive spending earlier. If the Chinese consumer is smart, all they have to do is look at a few American families who are living paycheck to paycheck as a result of their buy now pay later habits.
To the Chinese car buying public I say…Resist!