File - An employee yawns as he walks among General Motors' new Chinese-made cars at a parking lot in Shenyang, Liaoning province, in this April 21, 2014.(REUTERS/Stringer)
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In a country where owning a car has long been a symbol of luxury and success, around 85 percent of Chinese car buyers still buy cars with cash.These young people are willing to buy big-ticket items like a car on credit – a behavior unheard of some 15 years ago in China – and have led carmakers to boost their financing units in the mainland.Around 70 percent of car buyers in the United States and other developed countries take out loans, according to a Deloitte report in 2012 and the reason global carmakers are trying to seize on the rise in auto financing in China is because the sector is highly profitable.The country's automobile association forecast the auto financing industry to more than double to 525 billion yuan by 2025 .Indeed, GM's China chief, Matt Tsien, said financing has proved a "steady business" in China.Toyota uses a set of risk assessment tools modeled around those used in other countries and refined to local practices in China that are being used by global carmakers, two Toyota executives said.
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