3 Biggest Risks You Should Know About P2P Auto Loans｜Peer-to-Peer Lending

According to reports, since August 2019, the P2P industry supervision work in China has been strengthened, and the platform with small scale and non-compliance has gradually withdrawn from the market. As of July this year, the number of P2P platforms operating normally was 768, down nearly 1,000 from the same period last year.

In addition, since 2019, the turnover of the auto loan industry is still growing, although there are some fluctuations, the growth of both active investors and successful borrowing standards is more obvious. With the increasing risk of bad debts in the P2P car loan industry, the return rate is low, and new methods are urgently needed to recover bad debts and reduce losses.

What are the biggest challenges of P2P auto loans?

First, the bad debt rate increased, some thrive while others struggle or go out of business

In general, car loans are divided into credit, mortgage and pledge. Although it is a short-term micro-credit, it is inevitable that there will be bad debts. By 2018, many companies have closed their doors because of bad debts. The current better solution is to install multiple GPS locators in the mortgage vehicle, real-time monitoring to reduce risk.

Second, credit evaluation is not in place

At present, the industry mainly evaluates credits through appraisers. There is no relatively sound system. Manual evaluation can not avoid the evasion of law and cause great credit assessment risks.

Last but not least, there’s huge pressure on post-lending management

As more and more people know the specific location of the GPS installed on the mortgage car through the network, the car loaner can easily find the GPS locator installation location and disassemble it. Moreover, many P2P auto loan platforms do not have professional risk control processes, and their experience is insufficient. The post-loan risk control management work has become more difficult and threatens the survival of the company.

Concox Auto Finance Risk Management Solution

Concox Auto Finance Risk Solution

In response to various problems in the industry, Concox learned that GPS trackers alone cannot meet the needs of the P2P car loan industry. The company introduced a strong wind control platform to strengthen risk monitoring, combined with wireless + wired GPS Trackers, triple protection of assets, prevention of secondary mortgages of borrowers, overdue loans, and rent arrears. Effectively curb lawless elements and reduce industry risks.

More product info: www.iconcox.com

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Created on Sep 17th 2019 22:36. Viewed 480 times.

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