Research Report | automobile finance and how to block chain symbiosis

Author: Olivia capital analyst Ben Rui

The segments of the automotive industry

1 Auto Finance

The generalized auto finance includes the financing behavior of the whole process, including parts production, vehicle production, vehicle distribution into inventory and general consumer financing lease, purchase of vehicles throughout the whole automobile industry chain. But the narrow sense mainly refers to the automobile finance on vehicle consumer loans, lease financing part of the consumer finance. At present, China’s auto finance industry overall in the preliminary stage of development, the penetration rate of only about 30%, far lower than the foreign mature market 80%. DDT forecasts, is expected to 2020 Chinese auto finance penetration will reach 50%, the market scale reached 2 trillion yuan.

02. automobile market

After the car market covers car sales, car service around the use of the process, any of a series of transactions that car from sales to all that may be involved in the process of service scrap generated, this paper describes the car after the market does not include auto finance industry. After the car market can be divided into two parts, car beauty, vehicle maintenance, vehicle accessories, auto parts, vehicle insurance etc.. The transport sector is expected, the future Chinese car market after the average annual growth rate of more than 30%, in 2018 after the car market size is expected to exceed one trillion yuan.

3 second-hand car market

The second-hand car market is two times the flow of goods vehicle location, it has the dual attributes of intermediary service providers and operators of goods. Specifically, the second-hand car market features are: assessment of second-hand car purchase, sales, consignment, replacement, sale, transfer, transfer of membership, licensing and other services. In every second-hand car average price of 60 thousand yuan, in 2020 the total amount of the transaction volume will reach 2 trillion and 340 billion yuan.

04. car networking

According to the definition of Chinese networking alliance, car Networking (Internet of Vehicles) is a huge interactive network consists of vehicle location, speed and route information. By GPS, RFID, sensor camera, image processing device, the vehicle can complete their own environment and state information acquisition; through Internet technology, all vehicles can be their own information transmission convergence to the central processor; through computer technology, the vehicle information can be analyzed and processed to calculate the different vehicles the best route, road conditions and arrangements for timely reporting of signal light.

Automobile finance

Consumer loans

China’s car sales for 8 consecutive years has been ranked first in the world, China’s car ownership to 200 million, has accounted for 20% of global sales, accounting for 30% of the world. But because of the large population of our country, at present, thousands of car ownership in China is 140, overall patient younger belongs to the automobile market, and larger growth space. In the Car Buying link, China’s commercial banks prefer car loans and credit card installment loans, consumer loans at present in our country the permeability is only about 40%, compared with the overseas developed automotive consumer market there is a certain gap between the permeability of 73%.

The vehicle mortgage loans to financial institutions or auto loan company loan. To use the car as collateral loans, mainly for the rapid turnover of capital. But the car depreciation quickly, the influence of the traffic accident vehicle value risk, financial institutions as a single mortgage loans to relatively few cars, general loan evaluation 5-8.

The car is the mortgage loan to the borrower or a third person or vehicle from Car Buying as the main advantage of mortgage mortgage vehicles is convenient audit speed, no account restrictions, no longer make an appointment, as long as the vehicle belongs to the legal compliance of the vehicle can perhaps loan. The vehicle mortgage generally suitable for short-term liquidity needs, or short-term investments and do not want to sell the vehicle population, the return of funds can quickly retrieve the vehicle. Even there are vehicles without the stock of mortgage, the mortgage of the vehicle can continue to use.

The vehicle mortgage business can be divided into the following categories:

1, the whole car mortgage business

This kind of business the general requirements for the personal name of full purchase of the vehicle, the vehicle in use period, the general requirements at the age of 20 to 60 years old, and the owners, the general requirements for the license plate is the main reason for the local territory, from the perspective of risk control, foreign car control car is difficult.

2, the whole car pledge

For the full amount of the mortgage pledge car, the relative risk is smaller, most institutions only require the purchase of vehicles for the full amount, and is not operating the vehicle.

3 mortgage loans, car loans

This kind of business is rare in the vehicle mortgage loans, because it is more complex, difficult to operate. In the business, the vehicle has been mortgaged to the bank, and even greater risk of small loan companies or individuals, generally involves more is mortgaged to the Bank of the vehicle. Need to cooperate with the bank’s business process, if the borrower fails to timely repayment, the auto finance company to help direct lenders to repay the remaining loan in the bank, and with the vehicle, self realization.

4, the whole car transfer service

When submitted to the lender demand for loans, auto finance companies will require lenders to make the transfer of vehicle ownership to a third party, such as the lender repayment after the completion of re transfer to the lender. Such services are generally not guard, but requires the purchase of vehicles for the full amount, and non operational vehicles.

finance lease

Car leasing is a kind of relying on cash installments, based on the introduction of characteristics of the separation of ownership and use right of rental, lease after the transfer of ownership to the lessee of the modern marketing mode.

The main form of financing lease:

1, direct hire

In this mode, the vehicle license plate and the hands of ownership in the financial leasing company, when the lessee default, financial leasing companies can use the right to lower cost recovery to reduce losses; for the lessee, the direct rent effectively reduce the purchase cost of the vehicle model, is conducive to improve the capital turnover rate and utilization. But after the expiry of the lease, the lessee if purchased, the formalities for the change of ownership will take some time, if the traffic accident happened in this period, financial leasing companies need to take greater risks.

2, customer service and leaseback

Provide customer service or leasing company funds leaseback to have financial needs of customers to buy the name of the vehicle in the form of ownership and access, customers can pay the rent for the right to use the vehicle. The advantages is that it makes the customer service leaseback, the owner of the vehicle (the lessee) required funding while retaining the right to the use of the vehicle, while providing lucrative investment opportunities for the lessor.

Vehicle insurance

Vehicle insurance, namely motor vehicle insurance, referred to as insurance, also known as the automobile insurance. It refers to a motor vehicle due to natural disasters or accidents caused by personal injury or property damage liability insurance. Auto insurance is a kind of property insurance, in the field of property insurance, auto insurance is a relatively young insurance, this is because the car insurance car is accompanied by the emergence and popularization of the emergence and development of. At the same time, different from the modern motor vehicle insurance is in the early stage of automobile insurance is for the automobile third party liability insurance as insurance, and gradually extended to the body of the collision loss risk.

Vehicle insurance can be divided into two parts of commercial insurance and additional insurance, commercial insurance can be divided into two parts the main vehicle insurance and additional insurance. The main commercial insurance insurance include loss of vehicle insurance, third liability insurance, vehicle liability insurance, the whole car pilfer. Additional insurance is mainly for vehicle parts damage including broken glass alone, the vehicle stop loss, spontaneous combustion

Analysis of automobile financial market participants

The main participants in the auto finance market for commercial banks, auto finance companies, the traditional financial leasing companies, insurance companies, the traditional Internet auto finance companies and Internet insurance company.

The commercial bank funds strong, carrying most of the savings and loan business, so the commercial banks have strict control standards for business risk in individual lending business sector the main user group is a relatively complete credit record, occupation income stable groups, prefer teachers, civil servants, medical workers and institutions of staff etc.. Because the user groups have a stable income, occupation and small change characteristics, so in this population compared to the interest rate loan products of commercial bank loan products will be lower.

The automobile finance company compared to commercial banks in the automobile loans more professional auto finance company is unlikely to cut into the field of vehicle production, but because of our proximity to the host plant, at the same time with the discount preferential policies in different stages, can do with the same product interest rate of commercial bank interest rate. At the same time with a professional team, to provide efficient quality services and approval process. In recent years, auto finance companies occupy an important position in the automobile sales industry, and constantly improve the permeability.

The traditional financial leasing companies in China’s penetration is only about 5%, while in developed countries, financial leasing accounted for auto finance market penetration is about 15%, there is still a gap, the market remains to be further explored. (2016 data)

The Internet car finance company is an emerging power of the Internet to extend the field of auto finance market, the Internet auto finance mode in Explorer, out in the form of financing lease business.

The insurance company is divided into traditional insurance companies and Internet insurance company. The insurance company will have more emphasis on the training of the insurance broker, mainly because of the traditional insurance marketing is hit the sea and that, main performance is to rely on the insurance broker to drive, so the traditional insurance company more on how to sell the idea in the operation. The main cost in personnel training, incentive, these costs will eventually be allocated to consumers on the head.

To realize the function of the Internet insurance mainly new sales channels and traditional business operation of electronic two functions.

(1) the operation of the traditional electronic business, there are mainly: query, automatic underwriting, self preservation, card activation, claim report etc.;

(2) the new sales channels, mainly through the Internet to achieve some relatively simple sales of insurance products. Such as: the aviation accident insurance, travel insurance, auto insurance and other insurance products relatively standardized, and the protection function is not strong, underwriting requirements of the participating insurance and universal insurance. The Internet insurance of the two functions, which reduce the insurance premium, the cost of personnel training, and improve the user experience, no stranger, no phone disturb, consumers can compare the number of products to.

But for now, the Internet sales of insurance products is also relatively simple products, the complexity of the underwriting limit, but the simplification of procedures, all insurance documents only need to fill in the file can be removed from the line, running under the operating point of the time. Premium higher, more stringent underwriting insurance remains in the line of sales, in the future to establish the perfect credit system, medical records and so on, these lines of insurance may be gradually transferred to the line.

Market development potential

With the improving of living standards, residents of leisure activities is also expanding the scope of short driving or long-distance car is a common family travel way; at the same time values in the process of city development and stimulate people from prosperity, consumption potential, the existence of vehicles can let residents enjoy a better consumption, don’t worry “no, not take such problems; in addition to the daily consumption of residents, the van there also let self-employed households can flexibly purchase, delivery and other business activities, to create more income, car is to meet the business trip, visiting business behavior. Policy support is the factors in addition to economic development of another big stimulus Car Buying residents demand.

In September 29, 2015, the State Council issued a notice: from October 1, 2015 to December 31, 2016, the implementation of vehicle purchase tax levied by the preferential policies for passenger car purchase 1.6L and the following displacement (from the original 10% to 5% tax relief tax levy)

In October 8, 2017, the central bank, the CBRC issued a new version of “auto loan management approach”, also issued a notice to adjust the car loan policy. The new regulations, the traditional power car loan ratio doesn’t change, occupied 80%, commercial 70%, use new energy automobile loans issued the highest proportion of 85%, commercial loans issued the new energy vehicles the highest proportion of 75%, were higher than that of conventional cars. In addition, the second-hand car loan maximum loan ratio significantly increased to 70%.

2017 years 12 months 26 days, the Ministry of Finance and the State Administration of Taxation, the Ministry of industry and information technology, Ministry of science and technology 4 ministries jointly issued “on the new energy vehicles are exempt from vehicle purchase tax notice”, the announcement for the purchase of new energy vehicles exempt from vehicle purchase tax, since 1 2018 1 date to 2020 years 12 months 31 date.

2018 “government work report”: the abolition of second-hand car relocation policy limit 2018 years; the Ministry of Commerce will continue to promote the comprehensive abolition of second-hand car relocation policy limit.

The government policy in the automotive consumer market changes is an incentive for residents Car Buying, is cooperating with the national economic environment, macroeconomic policy, industry development planning, to maintain steady growth in sales of the car.

 Research Report | automobile finance and how to block chain symbiosis

 Research Report | automobile finance and how to block chain symbiosis Photograph: Chinese industry information network

With the advance of the times, the backbone of 80 people born in 90s, and gradually transformed into the consumer market, the two generation of contact new things more, their parents’ ideas are not conservative, more easily accepted by the automobile financial products to buy their own car, for credit card installment loans, Car Buying financing lease, etc. accepted form of higher degree.

The automobile financial products in the future gradually, more selective, more flexible financial products more in line with the mainstream consumer groups “preference 80, 90, but in the market, the product increase means that the competition between auto finance companies is more intense, in the promotional products can be able to lower interest rates, 0 Shoufu, rapid approval and other eye-catching advertising slogan, but in the design of the product is” may have a ring set a trap waiting for consumers, the final payment of interest may exceed the original budget.

 Research Report | automobile finance and how to block chain symbiosis Photograph: Chinese industry information network

After the completion of the transfer of vehicle ownership, the need for timely purchase of compulsory insurance, compulsory insurance is first implemented by the state laws and regulations of compulsory insurance system China. The premium is to implement a unified national standards, the provisions of national unity, but different types of car to pay high insurance price is different, the main factor is the “car seat”. In addition to pay high insurance, the owner can insure resources of commercial motor vehicle insurance, a supplement to cover other accident risk compulsory insurance coverage outside. Increase in car sales, will help the vehicle insurance market boom, but the vehicle insurance products in addition to the state’s compulsory insurance policy of the requirements, design of commercial vehicle insurance products than simple financial products, even more difficult to understand, easy to fall into the trap of consumers to buy insurance products in the choice, and even affect the the day after the claim.

The industry pain points and risk

The frequency of 1, Piandai problem, influence of income and development

Some owners of false identity, Piandai vehicle accident, clone car, car rental, car seized, if these problems are not handled properly, it may cause more bad debts, affect the benefit and development of the company.

For the false identity, car accident, clone car, seized cars, by the public security organs and other relevant departments to be informed only query, but due to the information related to personal privacy, are often not informed before lending to verify the information, thus causing the automobile finance company had suffered Piandai behavior after recovery of the lease; the car, because the market of small and medium-sized rental companies, one verification will spend a lot of manpower and resources for auto finance companies will increase the cost of revenue, more than Piandai behavior will surely let the auto finance company has lost the amount of lending and future interest receivable, while increasing the subsequent recovery cost.

2, low rate of return, the credit system of the way

The vehicle factory auto finance company established in the overall return on assets, most less than 3%, the auto finance business in the low rate of return, and the one-year deposit interest rate is not much difference. Because of China’s auto finance is still in the early stages of development, permeability is far lower than developed countries, consumer related businesses lack of awareness led directly to the low rate of return; second, because of China’s credit system is not perfect, so the industry monitoring is more stringent, too cautious attitude to become the further development of the shackles of automobile finance. Credit system is the key to the development of automobile finance, credit system in some developed countries after decades of development, the data is very perfect. Although our country 1998 years from the beginning of the automobile consumption credit, but the credit system until 2005 began trial operation. If you want to catch up with Europe and the United States, but also takes a long time to accumulate.

According to DuPont analysis, the overall return on assets depends on the sales profit rate, turnover rate, leverage ratio, which is Chinese enterprises have some challenges, eventually led to a level of about 3%.

The sales profit rate depends on the capital where, if the loan from the bank, or to the parent company, there will be some costs, resulting in the sale of profit rate is not high; the turnover rate, currently is not so fast as foreign China turnover, car buying over will not so fast, perhaps abroad a year for a car loan may also advance, then change to the next car, fast turnover rate; leverage ratio, from the beginning of the year before China began to allow the issuance, auto finance is relatively high leverage, but there is a bit lower than the foreign level.

3, a car loan, just the car was immediately transferred to resell loans

In the current auto finance market, the fastest approval process even as long as half an hour, on the surface of efficiency faster, but invisible in the increase of a car caused by the audit process easier credit risk. A car loan, the new purchase car through the approval after obtaining the loan, and immediately find a mortgage company to obtain cash.

A car loan drilling auto finance company information is not complete, in order to simplify the review process of the competition advantage. Many mortgage owners of the same car, according to China’s existing laws can be carried out in accordance with the responsibility of fraud, but for the automotive finance companies, such a loan is almost as bad, the impact of the company’s future performance.

For a car loan this loophole, repeated after all, or auto finance company no data dimension enough, in addition to buy cheap illegal data, obtaining high cost data through the normal channels, and some key data cannot be obtained.

4, install GPS equipment to prevent run away, but was secretly removed

The automobile financial risk control industry most headache, but is unable to real-time monitoring to the car tracks, GPS locator installed in the car were all removed. GPS was removed, as no echo disappeared, the car once out of control, the risk coefficient soared. To deal with the general method, when installed in the vehicle equipment was removed when the alarm information is immediately uploaded to the GPS monitoring platform, the first time to control the vehicle, to speed up the search for evidence of vehicles, vehicles were transferred to reduce the risk of resale. There are companies is more than one and the independent operation of the GPS in the vehicle is provided, when one is removed or damaged, the information feedback to the monitoring platform, according to the rest of the GPS to continue to work to find the vehicle seat.

5, the high cost of sales channels of insurance, the insurance company claims costs

The high cost of channel. Because of the difference of the insurance product itself is too small, the insurance sales channels rely on strong, in order to obtain the user, insurance companies can continue to push the high commission to stimulate sales channels, which resulted in high cost channels.

6, low efficiency claims, claims difficult

The claim is time-consuming, claims the nuclear damage scene, including the traditional insurance claims, artificial nuclear damage etc.. General small rub accident responsibility, site investigation environment is not complicated, damage is relatively simple; but the most serious accident investigation general environment is more complex, accompanied by the definition of the responsibilities of controversy, the overall loss of a larger amount of money. So overall, business operations for the claims of time-consuming and low efficiency, at the same time, fraud, fraud is also repeated.

From the point of view of insurance companies, claims difficult mainly from three aspects, one payment amount is far greater than the growth rate of insurance premium growth, insurance companies benefit and loss; lack of the two insurance company claims of professional personnel, service personnel claims part of the lack of skills, no damage, no claims, even there are clerks and customers to improve the phenomenon of collusion loss amount.

The second-hand car market

In the city traffic network is more and more developed today, the car is a necessary tool for people’s daily travel, for a second tier city, traffic jam, parking and other licenses, affected residents Car Buying enthusiasm, for the following three or four lines and the influence factors of the city, more residents Car Buying enthusiasm is the price of second-hand car compared in a lot of new car discount for some families is a good choice. But the second-hand car market there is still a lot of constraints restrict residents Car Buying enthusiasm, such as license plate restrictions, geographical restrictions……

In 2017, the second-hand car market has no small change, part of the city to cancel for the second-hand car relocation policy limit, limit move policy has been to limit the enthusiasm of the public to buy second-hand car, to the requirement of Hebei Province as an example, the country has more than five fuel standards and local residence permit “, which need a residence permit take a long time, in some areas there will be life requirements, let the public in the purchase of second-hand car of a lot of restrictions and conditions.

Limit move policy after the release, the car needs of the owners, the biggest advantage is that their vehicles with appreciation of space, before the vehicle is only in their own city to sell, the price must have been formed, but canceled the move after the second-hand car prices and local price of other city is unequal, will produce market competition different regions of the buyers can bid on the same car, the real value of this car can be better reflected, not lower prices.

This policy promoted the second-hand car in the city’s circulation, accelerate the second-hand car market sinking to the four tier city. 3 2018 5, proposed in the government work report will abolish the relocation policy, which will further release of second-hand car market potential.

Cancel the another advantage of migration is the formation of the national second-hand car prices unified and standardized, also paved the way for the future to build a second-hand car market is good, the emphasis on “cancel the second-hand car limit move, will greatly promote the automotive industry circulation, will make an inventory of the existing stock, for the majority of second-hand car demand the future of the automotive market, second-hand car will flow more quickly, procedures are more simple, from the overall second-hand car market, accelerate the circulation of second-hand automobiles will also promote the sales of new cars.

 Research Report | automobile finance and how to block chain symbiosis

                                                                                                                                     

2012 to 2017 of second-hand car market trading volume

Photograph: Chinese industry information network

Pain point

1, the vehicle valuation is not accurate, some car dealers lack of credibility

The current second-hand car dealer’s main car store closed car or car to the local car and personal income source, professional degree greatly affects the inspection personnel and the closing price of the car. Professional inspection personnel and more prone to overestimate the probability of a poor quality car prices, lack of professional degree may make him unable to judge the vehicle chassis, engine, braking and other key parts are in good condition, whether the effect of driving and so on.

In addition to inspection personnel and professional degree affects the vehicle real price, closing the car’s integrity also determines the final price of a car, for poor closed car dealers, there may be abetting inspection personnel, make a judgment on the price down to a car, or even make the destruction of some little secret of the vehicle, let I do not know the real situation of the owners in silence.

2, data fraud

Close the car’s integrity is on the one hand, there are also the owners of malicious tampering with the traffic data for your own vehicle can sell a higher price behavior. In general, the vehicle structure greatly understand the owners can not change their own vehicle data, the situation is more with the 4S shop or repair shop in the street “cooperation” way to tamper with their own vehicle data.

Thus, the key to the healthy development of the second-hand car market is to establish both the integrity of the system, reduce or even eliminate any false, evil may.

Car networking

The main operation mode of car networking:

  • The vehicle information service mode to individual consumers as the center.

The model with a host of major manufacturers as the leading OEMs, equipped with independent research and development, the third party, to provide cloud networking business car networking solutions in the car, to provide consumers with navigation, road security, emergency rescue, entertainment, service and process control.

  • The construction of Intelligent Transportation

This pattern led by government agencies, the government through big data platform, communication facilities, vehicle data collection methods on city traffic, vehicle condition to carry out the process of diagnosis and monitoring, intelligent transportation construction.

  • Fleet Management

Through data platform, hardware and communication technology to monitor vehicle safety status, operation cost, logistics scheduling, reduce the cost of vehicle management.

  • Finance and insurance

The hardware of the driving behavior, vehicle accident insurance for the collection, reflect the difference. This difference, mainly reflected in the UBI (Usage Based Insurance, which based on the driving behavior of the insurance premium insurance business).

Development trend

The vehicle running Monitor System has long been the development of key areas of intelligent transportation. In the world, the United States IVHS, Japan’s VICS system through the vehicle and the road between the establishment of efficient information communication, has realized the intelligent traffic management and information service. While Wi-Fi, RFID and other wireless technology in the field of intelligent transport management have been applied, such as the intelligent bus signal priority, the location management and intelligent parking lot management, vehicle type and traffic information collection, Luqiao electronic parking fees and vehicle speed calculation and analysis has made some application results.

The development of car networking system mainly through complementary sensor technology, wireless transmission technology, data processing technology, data integration technology and implementation. Car networking system in the future, will face the system function integration, data and high transmission rate. The vehicle terminal integrated vehicle dashboard electronic equipment, such as hard disk broadcast, radio, data acquisition will face multiple video output requirements, so the image data transmission, requires extensive use of today’s popular 4G network.

According to the prediction of GM’s future cars will be electrified, intelligent and unmanned, between cars, vehicles and roads will have exchange kinetic energy, traffic congestion, air pollution, traffic accidents will become history. At present, with the intelligent network traffic system GM, Roewe, TOYOTA and other manufacturers have to test the water, car networking has been gradually for consumers to understand and familiar with.

At present, the most mature automotive systems, General Motors OnStar has the function of remote control, intelligent transport systems research center Tongji University director Yang Xiaoguang pointed out: the next generation of intelligent transportation system and the basic structure of social traffic has been ready, and vehicle networking technology will completely change the future travel patterns. The future is like 3D smart car navigation system with an intelligent robot. As Shanghai World Expo SAIC – 2030 built GM car networking vision: car to achieve “zero emissions, zero fuel consumption, zero congestion, zero accident, and driving is full of fashion and fun”, realize the dialogue between the”.

Car networking prospects for the development of this emerging industry is desirable, but need more help, including the cooperation of the cross industry; the need for government attention, support and guidance in policy; city planners and infrastructure needs the efforts of experts; to automobile manufacturing enterprise’s long-term vision and open mind, good product development and you need to participate in market planning; information technology services companies, the establishment of a more solid information infrastructure, information collection, transmission, processing is ready.

Pain point

1, there is no uniform standard and structure

Different manufacturers, OBD and Can bus communication protocol is different, and the outside is completely closed, simply by the Internet Co to do, it is difficult to achieve universality. If you rely solely on crack, it will produce legal and safety risk. But limited, need to have strong negotiation skills or a more unified automotive industry standards, will make a breakthrough.

2, information security is difficult to guarantee

Car networking and networking application technology similar to that in the application process, each detail information will be connected to the network whenever and wherever possible, whenever and wherever possible be perceived. The exposure signal in public that is easy to be stolen, but also more vulnerable to interference, which will directly affect the safety of the car networking system. How to ensure the security and privacy of information in vehicle networking environment, avoid virus attacks and malicious damage, prevent the loss or theft of personal information, business information and property, will be a major breakthrough in the development process of problem in car networking. This requires continuous improvement of the technical level, on the other hand, with the development and improvement of Internet Express requirements of relevant laws and regulations of the system, provide a solid legal guarantee for the promotion and application of car networking.

3, the cost is more expensive

According to the survey, Shanghai World Expo SAIC – GM Pavilion EN-V models, the cost per 300 million, which the ordinary consumer is too expensive. Similarly, and car networking related infrastructure is costly, for example, to build a huge wireless network, will need to spend money, this is undoubtedly a car networking bottleneck in the development process. Car networking in the application process there will be many new problems. For example, in the promotion of car networking is also facing the imperfect technology, existing situation, the protection of intellectual property rights, laws and regulations to follow up issues such as the use of technical barriers to vicious competition.

The possibility of combining with the chain block

1, owner of record driving habits

For insurance companies, car owners driving habits affect the day after the claim, the probability of opening more cautious to comply with traffic regulations, the owners of main responsibility accident, not far below the reckless driving traffic police, to capture the restriction on camera owners to ignore traffic regulations. But for now, a person’s driving habits, the real situation cannot be obtained by face-to-face communication, the owner may lie in order to avoid premium increase. The insurance company can not determine, unable to control the owner’s behavior, therefore, it is a single species of insurance, the insurance company has a large pressure compensation.

If the block chain technology, the owners of the daily driving behavior analysis of detailed records, in the protection of privacy of the owners at the same time, to the insurance company a driving habits assessment report, as a premium pricing basis. More effective in the high risk of owners and other owners of distinction, to reduce the insurance company paid the cost of.

The accurate valuation of 2, second-hand car

In the existing market pain points, the daily vehicle driving behavior, process data upload, recording, retention, use of tampering, delete, anonymity can not block chain technology, in the real data while protecting the privacy of the owner to retain the integrity of the vehicle. To avoid future transactions in second-hand car data tampering, cover up accidents, vehicle breakdowns and other vehicles, affect the final pricing.

3, intelligent traffic network

Although the car networking technology has not communicated with each other the contention of a hundred schools of thought, the phenomenon of car networking barriers but through block chain technology can get through different manufacturers, design universal application in car networking, truly make interconnection between the vehicle and the vehicle.

Once broken, different manufacturers of car networking technology barriers, so only traffic network can be established gradually, in order to solve the domestic city serious road traffic congestion problem. Traffic congestion is a challenge in the process of city development will experience, the most serious traffic congestion occurred in the north of Guangzhou Shenzhen these more developed city. Intelligent traffic network, composed of every car on the road vehicle, the vehicle is equipped with sensors to collect traffic information and upload to the network through the automatic process. Road traffic information will eventually generate optimal driving path feedback to the driver.

At present, the development of car networking technology still limits between different manufacturers, more than steam power, Roewe’s series is connected to each other, and search around the vehicle, the vehicle function gets placed around the music. The future and block chain combination after the car networking will have more operational functions, and natural with Anonymity Privacy owners.

4, the car market after the combination of ecological

After the car market as a part can not be cut away from the car in the overall market, although there can be combined with block chain technology, but can be used as a part of ecology, sharing and use of the flow, reduce their cost was off, the owners can also enjoy preferential prices, in which the real evaluation the benefits of.

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