Ford sees monthly record

FORD Motor Corp said a record number of buyers took loans from its car loan unit to finance their auto purchases in July boosted by demand for its models and better market acceptance of borrowing.

More than 1,000 buyers used auto financing to fund their purchases of Ford's imported and Chinese-made passenger cars last month, according to a statement from Ford Automotive Finance (China) Limited. The number of loans took out led to a penetration rate (car loans as part of the total number of dealer sales) of nine percent.

"The car loan business is growing at a faster pace," said Heneth Hsu, a public relations official from Ford Motor China, who declined to provide the average monthly record, however.

"Customers in China's eastern region are having a more open minded opinion (to loans) which helped to increase sales."

The booming car loan business followed a 29-percent sales increase of Ford Motor's wholly-owned passenger car brands to 94,064 units from January to July from the same period a year earlier.

For the first seven months of the year, FAFC granted 5,200 car loans and the number is likely to exceed 10,000 by year's end.

Besides individual auto buyers, FAFC has also offered wholesale financing amounting to billions of yuan to 150 dealers of Chang'an Ford Mazda Automobile, Jiangling Motor and Volvo.

Overseas car makers such as General Motors Corp, Toyota and Volkswagen are also busy expanding their car loan business to lure Chinese first-time buyers to boost their sales in the world's second-largest auto market.

Less than 10 percent of buyers choose car loans in China against 50 percent in Japan and 80 percent for the US market.