Car bank

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Car banks are group banks that deal with the financing of motor vehicles .

tasks

Motor vehicles are among the most expensive consumer goods and therefore often require financing when they are purchased. For this purpose, the group-bound ( English captive ) car banks operate the dealer and sales financing for their group . Car dealers operate as wholesalers between motor vehicle manufacturers and consumers and can cover their financing needs with car banks. The sales financing with the end consumer can be done through direct purchase price financing with the help of a consumer loan or leasing .

In the area of ​​automobile financing, the automobile banks hold large market shares . In the case of loan agreements , the transfer of ownership of motor vehicles as collateral is common. It can be assumed that the mortgage lending limits for common motor vehicles do not exceed a maximum of 50% of the purchase price. This business is mainly promoted by the fact that the car manufacturers grant discounts by offering installment loans for car financing at favorable conditions. In addition, car banks deal with the marketing of maintenance, guarantee and insurance services.

history

In January 1917, the US American Commercial Investment Trust received a patent for an “auto financing plan for the wholesale trade” and began financing racing cars . The Ford Credit Company AG (now Ford Bank ) in Berlin was established on February 22, 1926 as the first manufacturer-owned car bank . It should enable broad sections of the population to buy an automobile. At that time, motor vehicles were still unaffordable for most consumers, and traditional banks were initially not ready to finance them. When it was founded, there was a separation between goods production and sales financing for the first time . In 1930 her company name changed to “Credit AG for Ford Vehicles”, in 1932 it moved to Cologne after the Ford factory , and in 1938 it turned over 74 million Reichsmarks. In 1962, Ford Bank's sales exceeded DM 1 billion, and in 1977 it took up leasing finance.

In the meantime, Fiat Kredit Bank GmbH (since 1933 Fiat Bank GmbH ) and Opel Bank were established in 1929 . This was followed in August 1949 by Volkswagen Bank and in Cologne by Renault Bank (now Renault-Credit-Bank ), in 1971 by BMW Bank , in 1973 by Peugeot with "PA Creditbank", in 1987 by Mercedes-Benz Bank and Seat Kreditbank and in 1988 by Toyota Credit Bank Cologne . Volkswagen Bank entered the direct banking business in 1990 . The total credit volume of all German car banks in December 1992 was DM 33.5 billion. Cologne was able to establish itself as a center for car banks.

Meanwhile, the 1985 was financial innovation of the balloon loan ( English balloon loan ) on the financial market , which was offered by Ford and General Motors for the first time. At the end of the credit period , this installment loan has a residual debt calculated in advance, which is comparable to the residual value in the case of leasing . The highest repayment installment is due at the end of the credit period ("balloon"), this residual debt, like the residual value in the case of leasing, corresponds to the expected market value of the vehicle. AutoBank AG offers banking services in Austria . It came into being in 1995 when the Auto-Handels- und Leasing Bank AG was renamed , which was founded in 1978.

The youngest is the Honda Bank , founded in 1998 , the largest is the VW Bank. In 2016, according to the industry association " Banken der Automobilwirtschaft " (BDA), around 75% of all new car registrations in Germany were financed through leasing and financing models, which corresponds to an annual loan volume of around 60 billion euros. The contract portfolio with automotive banks was 113 billion euros. Customers who have financed or leased their vehicle use the vehicle for an average of 4.5 years, while those paying in cash use it for 6.2 years.

organization

Automobile banks are run in the legal form of a corporation (usually stock corporation or limited liability company ) and are majority owned as a subsidiary of the respective automaker . The manufacturer-bound automotive banks operating in Germany have come together in the umbrella organization "Banken der Automobilwirtschaft (BDA)".

Car banks are mostly set up as direct banks without their own branch network. They only offer special financial services to a certain customer group , so they belong to the specialist banks in terms of banking operations . The refinancing of the automotive banks usually takes place outside the group by emission of bonds , interbank trading and customer deposits .

Well-known automobile banks (except those mentioned in the text)

Individual evidence

  1. ↑ Frank Stenner, Handbook Automobile Banks: Financial Services for Mobility , 2015, p. 321
  2. ↑ Without author, 75 Years of Ford Bank: The Inventors of the Autobank , 1991
  3. ↑ Bankenfachverband e. V., Annual Report 1993 , p. 144
  4. ^ National Consumer Finance Association (Ed.), Credit , Volumes 11-12, 1985, p. 12
  5. ^ Frank Stenner, Handbook Automobile Banks: Financial Services for Mobility , 2015, p. 2
  6. ↑ Topic portal Autobanken , spiegel.de. Retrieved January 23, 2013.
  7. ↑ Frank Stenner, Handbook Automobile Banks: Financial Services for Mobility , 2015, p. 38