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China Auto Finance Consumer Behavior Report
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About Ipsos
Ipsos is a world-leading market research group. Founded in Paris in 1975 and listed in the same city in 1999, Ipsos is the only market research group owned and managed by research professionals.
Ipsos now has about 16,000 employees and more than 5,000 clients. Every year, it carries out over 70 million in-terviews and above 100,000 projects in 85 countries and regions. As the biggest market research company in China, Ipsos China has offices in Shanghai, Beijing, Guangzhou, Chengdu and Wuhan, owning around 1,500 profession-als with over 1 billion RMB revenue.
Ipsos has diversified professional research product lines and rich industry expertise. Its research area covers adver-tisement and brand research, marketing research, media research, public affairs and social studies, satisfaction and loyalty research, data collection and processing, auto re-search as well as finance and service research; its service scope covers FMGG, finance, auto, IT/telecommunications, medicine and health, etc.
About Volkswagen Finance China (VWFC)
Volkswagen Finance China (VWFC) is a solely-owned company of Volkswagen Financial Services AG and is the first wholly foreign-owned auto finance company in China. Since its foundation in Beijing in 2004, it has over 800 employees in China at present and has established close cooperative relations with SVW, FAW-VW and Volkswa-gen Group Import China, providing a range of innovative financial services for Volkswagen Group brands including Volkswagen, Audi, ŠKODA, Porsche, Scania, SEAT, Bentley, Lamborghini and MAN.
After 10-year cultivation in China, VWFC has experienced a tremendous development in terms of its own business as well as the entire auto finance industry in China. Growing from 17 dealers in one city to over 2300 dealers in 300 cities. In 2014, VWFC successfully accomplished over 400,000 retail loan contacts, a new record in its history.
By introducing advanced auto finance products based on the global practice of its mother company, Volkswagen Financial Services AG, VWFC successfully established its leading position in China auto finance market. And more importantly, it never stands still. Up to now, VWFC has developed various innovative products for Chinese customers, including balloon credit, upgrade finance, tier payment and etc. With all those outstanding products and services, VWFC has won the trust and preference among Chinese consumers.
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It has been more than ten years since the first wholly for-eign-owned auto finance company in China, Volkswagen Finance (China) Co., Ltd, established in 2004. 10 years ago, auto finance was not regarded as an important part in the entire auto industry, and the overall finance penetration at that time was only about 3-5%. 10 years later, with the support of our government, the cooperation of brands, the motivation of dealers, the trust of consumers, as well as the active exploration of all auto finance providers, the finance penetration has exceeded over 20%. What’s more, the im-portance of the role auto finance plays in the entire auto industry has gradually been seen.
Particularly in the past several years, as consumers’ attitude towards auto finance is shifting, and the 1980’s and 1990’s have grown into the main force in consuming market, a com-plete era of auto finance is coming.
Before we outlook for the next 10 years, let’s firstly have a look at what our consumers are thinking and doing. We should do our best to know about our God, and then think about how we can improve ourselves to better satisfy them, by which means we can drive China auto finance industry moving forward.
2014-2015 China Auto Finance Consumer Behavior Report is the first survey based on real auto finance consumers in China. Over 3500 samples have been collected by question-naire, group interview, dealer interview and consumer dairy, which cover various brands, comprehensive car models and wide regions. In addition, over 1 million VWFC consumers’ demographics have also been analyzed to enrich the report. The reality and sufficiency of the data has made the report more reliable and profound. This report focuses on China auto finance industry environ-ment, multi-dimension of consumer population characteris-tics, consumption concept, influential factors on consumer behavior, comparison among different auto finance provid-ers, and etc., aiming to draw a clear portrait of China auto finance consumers to all.
As the leader of China auto finance industry, VWFC has been always indicating itself to exploring and developing the industry. We are glad to share this report with all of you. We hope we can work closely together to make China auto finance industry in next 10 years even more prosperous.
Joern KurzrockCEO and General Manager
Volkswagen Finance (China) Co., Ltd.
Preface
China Auto Finance Consumer Behavior Report
Consumer attitude shift opens up opportunity for auto Auto finance is the tool for people to better manage Auto finance provides people better life quality Post-80s: Are the absolute consumers of auto finance Auto finance is more acceptable to smart, independent Auto finance companies’ advantages distinguish them Dealers play an important role to influence consumers’ Diversified products by auto finance companies can Main factors that Influence consumers’ buying behavior Service Depth and Breadth is the Long-term Development
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2021
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Content
1Research Design
City selectionsModel selectionsDefinitionReading guidance
05060708
Analysis of China’s Auto Finance Customers3
finance
their cash
and life-enjoying females
4Analysis of VWFC Chinese Consumers
Education Level of VWFC ConsumersSigns of VWFC Consumers Age of VWFC ConsumersValue and Lifestyle of VWFC ConsumersInformation Sources and Decision Making Process of
Typical Consumer profiles
2223242527
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VWFC Consumers
The development of China’s auto market has laid a
Significant progress and huge potential of auto finance Rapid growth of auto finance companies
09
10
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2Ten-Year Development of China’s Auto Market and Auto Finance Market
market
good foundation for auto finance
from others
decision
better satisfy consumers
Strategy
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Research DesignCity selection
City selection
This survey has a wide geographic coverage of 19 cities across China.
City Region Population GDP Average Wage Car Parc
Beijing North China 12.07 million 1.60 trillion 76629 4.07 million
Tianjin North China 8.16 million 1.05 trillion 56207 2.15 million
Shi Jiazhuang North China 2.47 million 0.15 trillion 39338 1.60 million
Taiyuan North China 2.84 million 0.19 trillion 45505 0.88 million
Huhehaote North China 1.23 million 0.15 trillion 45470 0.7 million
Changchun Northeast China 3.65 million 0.28 trillion 44732 1.35 million
Haerbin Northeast China 4.72 million 0.29 trillion 49481 1.1 0million
Shanghai East China 13.51 million 1.90 trillion 77145 2.62 million
Suzhou East China 2.45 million 0.41 trillion 54927 2.10 million
Hangzhou East China 4.40 million 0.56 trillion 55959 2.50 million
Ningbo East China 2.25 million 0.36 trillion 53639 1.34 million
Xiamen East China 1.85 million 0.25 trillion 46414 1.01 million
Qingdao East China 2.77 million 0.37 trillion 48471 1.40 million
Zhenzhou Central China 5.30 million 0.23 trillion 38665 1.50 million
Guangzhou South China 6.71 million 1.15 trillion 59195 2.10 million
Shenzhen South China 2.68 million 1.15 trillion 55142 2.30 million
Chengdu Southwest China 5.45 million 0.48 trillion 44918 2.33 million
Xi'an Northwest China 5.69 million 0.33 trillion 42493 1.60 million
Weifang East China 1.83 million 0.10 trillion 39195 1.49 million
Source: 2013 China City Statistical Yearbook
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Research DesignModel Selection
Model Selection
This survey covers a wide range of models of different vehicle types, which consisted of the best-sellers of mainstream joint venture brands and luxury brands. Over 100 car models are included. In total, 3,511 auto finance consumers are inter-viewed. This is a research with wide model coverage and large sample size.
Mainstream Brands
Model German Cars Japanese Cars Korean Cars American Cars French Cars
A0/A
GolfBoraJetta
SagitarPOLO
SantanaLavidaFabia
OctaviaRapid
LivanaTiiDASylphy
FitCITY
Kia K2 Kia K3VernaElantra
AVEOCruzeFiestaFocusExcelle
Peugeot 207 Peugeot 307 Peugeot 308Citroen C2
SegaElysee
BMagotan
PassatSuperb
TeanaAccordCamry
Sonata 8 Kia K5
RegalMalibu
Mondeo
Citroen C5Peugeot 508
SUV TiguanYeti
CRVQushqai
RAV4
Ix35SportageRSportage
CaptivaEscape Peugeot 3008
Luxury Brands
Audi VGIC VW Mercedes-Benz BMW Lexus
A3 Beetle A/B-Class 1 Series CT
A4 － C-Class 3 Series ES
A6 － E-Class 5 Series GS
A8 Phaeton S-Class 7 Series LS
Q3 － - X1 -
Q5 － GLK X3 RX
Q7 Touareg ML X5 LX
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Research DesignDefinition
Definition
Auto Finance: Transfer of car ownership or use right through finance method.
Auto Finance Company: Non-bank financial entities charted by China Banking Regulatory Commission (CBRC) under its authority granted by applicable laws and the Regulation to provide loans for auto buyers and dealers in the mainland of China.
Down payment: Considering the risk of the repayment, relevant departments ask for a portion of car price paid upfront as the down payment and finance the rest amount into loan, in order to guarantee the repayment ability and reduce repayment risk.
Interest Rate: The interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year.
Loan Tenor: Negotiated when applying for a loan, the pe-riod of time to repay a loan.
Installment: The amount of monthly repayment including principal and interest. Straight Line Repayment and Re-ducing Line Method are the most common ones, but there are financial institutions providing other products to better serve different customer with different income structure and spending habits such as Volkswagen Finance China’s Tier payment.
Straight Line Repayment: During the tenor, repay the same amount monthly instalment including principal and interest, the percentage of the principal of the monthly in-stalment decreases every month.
Reducing Balance Method: During the tenor, the total loan amount is divided into same monthly instalment of
principal, and the interest is generated on the rest of the loan. Since the principal of the monthly instalment is fixed while the interest decreases, the total monthly instalment declines every month.
Classic Credit: Classic credit consists of a down payment (required by CBRC, no less than 20% of car price) and monthly installments.
Balloon Credit: Balloon Credit consists of a down pay-ment, monthly installments and a final payment (25% of the total loan amount). As a portion of the loan is only required to be paid off at the end of the loan tenor, this product can significantly lower the monthly instalments. Three options to deal with the final payment are offered as pay off the final payment, extend the loan tenor for final payment, or trade-in.
Enjoyable Balance Loan: 50% of the car price as down payment, 50% of the car price as final payment, 12 months loan tenor, only interest needs to be paid during the tenor. Same as the Balloon Credit, three options are offered for the final payment.
Exquisite Easy Loan: 30% of the car price as down pay-ment, 35% of car price as final payment and 36 months loan tenor. Same as the Balloon Credit, three options are offered for the final payment.
Upgrade Finance: At least 60% of the car price as down payment, both classic credit and balloon credit are avail-able. It requires only ID card and application form at best, and customers can get approval within 2 hours.
Tier Payment: An innovative product with flexible repay-ment schedule based on customer financial situation, of-fers tier-up or tier-down solutions. The loan tenor is 24 or 36 months and divided into no more than 6 periods within which the installment should be the same.
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Research DesignReading Guidance
Reading Guidance
Index Explanation
Top2%: in the 10-point scoring table, in order to see the proportion of higher scoring customers, calculating the per-centage of customers who scored 9- points to 10- points
Top3%: in the 10-point scoring table, in order to see the proportion of higher scoring customers, calculating the per-centage of customers who scored 8- points and 10- points
Mean: the average of scores
Based on the number of samples completed in this
study, in the analysis of different segments, the sample
size of some groups of certain segments is less than 30.
In such cases, the data will be labeled with “*”, which
are only for reference and has no statistic significance.
User Definition
Total: those auto finance consumers who buy a car by taking a loan, including the consumers who take loans through com-mercial banks, credit card and auto finance companies
Commercial banking: consumers who buy a car by taking loans through commercial banking
Credit card installment: consumers who buy a car by taking loans through credit card installment
Auto finance companies: consumers who buy a car by taking loans through auto finance companies
“Italics with quotation marks” refers to the original words of focus group participants or IDI respondents.
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Ten-Year Development of China’s Auto Market and Auto Finance MarketThe Development of China’s Auto Market Has Laid A Good Foundation for Auto Finance
The Development of China’s Auto Market Has Laid A Good Foundation for Auto Finance
In the past 10 years, the sales of China’s passenger cars maintained a rapid growth, with the average annual growth rate of 22%. In 2009, with the double drivers of macro-economic recovery and a series of auto consumption incentives, China’s domestic production and sales volume surpassed that of the United States and ranked the first in the world for the first time. In the years down the road, China’s passenger cars will maintain its fast sales growth.
Passenger car market has also undergone tremendous changes in these ten years. In 2004, there were only 18 new models. But in 2014, there were 96 new models. All the car makers have kept developing new models to meet the need of consumers in various market segments; the price of passenger cars dropped from hundreds of thousands RMB to only twenty to thirty thousand RMB
The sales volume of China’s passenger cars (narrow sense) in 2004-2014 (10,000 units)
Annual released new models in China’ passenger car market in 2004-2014
254
2004 2005
314
2006
424
2008
537
2007
507
2009
826
2010
1110
2011
1191
2012
1270
2013 2014
1555Average growth rate reached 22%
now. Meanwhile, sales channels have also transformed from disordered ones to the brand and professional management of 4S shops. All these factors have helped to promote the development of China’s passenger car market.
With the economic growth of China, higher family income, increasing model choices, price drop and the expansion of sales channels, passenger cars finally shifted from a symbol of social status to its nature function- means of transport. Also, the main consumers have changed from government agencies or enterprises to individuals and families.
The rapid development in passenger car market brings in a huge development potential for auto finance.
18
2004 2005
23
2006
34
2008
28
2007
28
2009
55
2010
39
2011
47
2012
46
2013 2014
63
96
1771
Source: CAAM data
Source: CAAM data
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Ten-Year Development of China’s Auto Market and Auto Finance MarketAuto Finance Has Experienced Significant Progress And Been Seen Huge Potential
Auto Finance Has Experienced Significant Progress and Been Seen Huge Potential
In 1998, after People’s Bank of China officially approved the auto finance business, China’s auto finance business has undergone tremendous changes. According to the statistics of People’s Bank of China, by the end of 2008, all the financial institutions in China had issued158.3 billion RMB auto loans. With an annual growth rate of 25%, the loan rose to 486.4 billion RMB in 2013*.
Auto consumption loan balances of China in 2008-2014 (100 Million RMB)
Policies and regulations of auto finance market
Time Policies and Regulations Market Access Business Scope Branches Risk Prevention
and SupervisionFinancing Channels
Relevant Provisions of
the Loan
3 October, 2003 Management Approach of Auto
Finance Companies
Summarized as “two-stage, two-
level review, two certificates
and stylized management”
－ －
Assets managed in five categories.
Implementing floating
management of capital adequacy
radio
－ －
1 September, 2004
Management Approach of
Enterprise Finance Company
The minimum sum of total assets is 5 billion RMB; the minimum annual
revenue is 4 billion RMB and the net assets rate is 30%
Conduct business in accordance with the registered capital
Branches allowed
Group companies have the obligations
of rescue and liquidation
－ －
1 October, 2004Management
Approach of Auto Loan － － －
Blacklisted those who deliberately
cheat to take loans －
Requirements of borrowers, the
proportion of the first payment and the provision of
loan period
24 January, 2008
Management Approach of Auto
Finance Companies
The minimum registered capital
is 500 million RMB or the equivalent freely convertible
currency
Provide the transfer of auto
loan business and sell the auto loan
receivables
Branches not allowed －
Accept domestic shareholders to take loans more
than 3 months and allow them to take loans from finance
institutions
Based on the interest rate of
People’s Bank of China, the changes cannot be larger than 30% and
cannot be less than 10%
Average growth rate reached 25%
On 3rd October, 2003, China Banking Regulatory Commission introduced Administrative Measures for Auto Finance Companies. Since then, VWFC and other auto finance companies gradually established in Chinese market, becoming a new channel for Chinese consumers to take loan to buy cars.
1.583
2008 2009
1.880
2010
2.380
2011
3.000
2012
3.721
2013
4.864
2014
6.080
* Source: data of China Banking Association, http://www.20087.com/2014-08/QiCheJinRongShiChangYuCeBaoGao.html
The data in 2014 is estimated according to the average growth rate Ana
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Ten-Year Development of China’s Auto Market and Auto Finance MarketRapid Growth of Auto Finance Companies
Rapid Growth of Auto Finance Companies
In 2004, China’s first wholly foreign-owned auto finance company-VWFC entered China, meanwhile China’s first operating auto finance company- GMAC-SAIC was officially founded.
The development of auto finance companies
1998 2004 2005 2006 2008 2009 2010 2011 2012 2013 2014
GMAC-SAICFAW Finance
VWFC Ford Finance
Chrysler Finance
VolvoAutomotive
Finance
Dongfeng Peugeot
Citroen Auto Finance
DNAFShandong
Auto Finance Service
Sany Auto Finance
GAC-SOFINCO Automotive
Finance
Shanghai Dongzheng Automobile
Finance
Chongqing Auto
Finance
Geely Finance
BYD Auto Finance
Toyota Finance Benz Finance
Fiat Automotive
Finance
Chery Motor Finance Service
BMW Finance
FAW Auto Finance
Beijing Hyundai Auto
FinanceFortune Auto
FinanceTianjin Great Wall Binyin
Overview of selected auto finance companies by the end of 2013 *
VWFC GMAC-SAIC Toyota Finance Ford Finance Nissan
FinanceChery
FinanceGuanghui Finance FAW Finance
Total size of the credit (million RMB) 26,030 36,200 26,300 9,500 13,560 8,800 9,960 9,300
Number of the covered cities 284 344 256 290 337 310 256 252
Number of covered dealers 1,931 2,910 969 509 1,139 1,076 1,172 2,004
After ten-year development, the number of auto finance companies increased from 2 to 23. By the end of 2014, the total assets of auto finance companies exceeded 340.3 billion RMB, a year-on-year growth of 31%. The loan balance exceeded 320.4 billion RMB, a year-on-year growth of 32%. Non-performing loan ratio is 0.41%, a year-on-year decrease of 0.04 percent point.
* Source: data of CBA
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Analysis of China’s Auto Finance CustomersConsumer Attitude Shift Opens Up Opportunity for Auto Finance
Consumer Attitude Shift Opens Up Opportunity for Auto Finance
In the past ten years, China’s economy has been booming and kept very good momentum. Thus, the Chinese residents have higher income, and the main car buyers are mostly individuals and families, which shift the car consumption attitude.
Auto finance market grows at an annual rate of 25%. However, only 20% of the consumers buy their cars by finance, which is still at preliminary stage compared to the 70%-80% of some advanced European and American
countries like US and Germany*. This phenomenon is driven by the traditional Chinese consumers’ attitude, namely of “out of debt, out of danger”. So the attitude of “excessive consumption” can hardly be accepted by the Chinese consumers. However, the popularization of credit card and housing loan is gradually changing the consumer attitudes. Consumers with the experience of consumption under debt or installment payment are more likely to accept auto finance.
Payment method by new car owners (%)N=30000
Consumption structure of owners who finance the car (%)
N=3511Feedback of owners
94
64
Housing Loan
Credit card owners
80% Cash
20% Auto Finance
*Source: ChinaIRN http://www.chinairn.com
“I bought my house by taking a loan. I found out that the interest rate of car loans is lower than house loans. I know
you must pay for loan interest and I can accept it.”
– Xi'an
“I bought my iPhone by installment payment.”
– Weifang
“The interest rate is low and much lower than other general loan interests.”
– Guangzhou A
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WFC
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Analysis of China’s Auto Finance CustomersAuto Finance Is the Tool for People to Better Manage Their Cash
Auto Finance Is the Tool for People to Better Manage Their Cash
Auto comsumers still choose auto finance even they can afford a car by cash to make good use of cash for other investments. Auto finance can improve the utilization of
family assets, protecting and increasing the assets value. Such advantage is better leveraged in the southeastern cities with well-developed economies.
Choose to take auto finance in order to invest money in other areas (%)N=3511 Feedback of owners
68
Total SouthChina
EastChina
WestChina
NorthChina
73 71
57
66
“For example, putting money in alipay has more return than putting them in banks.”
– Shanghai
“You don’t need to pay the money at one time. You can make investment.”
– Shanghai
“Using the car money to do business and make more money.”
– Guangzhou
“Taking car loans is relatively cheaper and the interest rate is low. So you can use the
money to do more investment.” – Guangzhou
“Even though I can make full payment, I choose to use the money to do investment.”
– Chengdu
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Analysis of China’s Auto Finance CustomersAuto Finance Provides People Better Life Quality
Auto Finance Provides People Better Life Quality
As an important part of high-quality life, cars offer people convenient mobility and expand the radius of our activities scope. But normally buying a car is not a small expenditure and people need to accumulate wealth before they can afford a desirable car.
Auto finance provides a new means of payment for consumers. By auto finance, consumers can buy a car without full payment and enjoy the convenience brought by cars, which improves people’s life quality.
Choose to buy cars by loan because they can buy a better car without full payment (%)
N=3511Auto finance means
4851
60
4743
“Buying a car in advance” – Xi'an
“No influence on buyer’s original life style” – Shanghai
“Prefer to take a loan and enjoy excessive consumption”
– Guangzhou
“I bought a car worth 200,000 with only 100,000 RMB”
– Beijing
“Upgrade my cars and buy a better car in advance”
– Guangzhou
“I can buy a more premium car with the same amount of money”
– Chengdu
Total SouthChina
EastChina
WestChina
NorthChina
Source: Ipsos auto finance consumer survey
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Analysis of China’s Auto Finance CustomersPost-80s Are the Absolute Consumers of Auto Finance
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Post-80s Are the Absolute Consumers of Auto FinancePost-80s are those who were born after China’s reform and opening up and are normally “the only child in the family”. They live richer material life and keep more active and open mind than the older generations, and thus are not constrained by traditional consumption attitude and life concept. Therefore, when post-80s become the main consumers, they are more open to the idea of buying a car by taking a loan.
Post-80s now gradually grow into the backbone of society and start to shoulder the responsibility of society and family. They are also under pressure from both life and
work: they have old parents and young children need to take care of; soaring house prices force them to live far away from workplaces and 49% of the post-80s are still paying off the house mortgages. Consequently, they have to keep a certain amount of flexible cash on their hands in case of marriage, childrearing and parents’ illness.
However, having a car is a rigid demand for marriage, childrearing and commuting. Therefore, it is a good choice for them to buy a car by loans, which helps them utilize funds reasonably and reduce pressure financially.
7 58 30 4
Post 90s Post 80s Post 70s Post 60s
Lifestyle and values by ages (%)Total
(N=3511)Post-90s(N=245)
Post-80s(N=2053)
Post-70s(N=1074)
Post-60s(N=139)
Buying a car by loan to release financial pressure 17 16 18 16 18
Buying a car for marriage 20 20 22 17 17
I think my financial condition is safe 50 48 47 51 74
Believing that they enjoy life 31 33 28 34 41
Believing that they are optimistic 29 33 27 31 35
Buying a house by loan and still paying off the mortgage 45 48 49 40 33
Feedback of owners
Age structure of users who buy a car by loans (%)N=3511
“Buying a car before marrying, you can save some money for marriage” – Weifang
“My child needs to go to school. So buying a car by loan can save some cash for me, and I can let my child go to better school” – Xi’an
“I need liquidity as I always spend money somewhere” – Xi’an
"I do not have enough money as I just bought a house” – Xi’an
“I plan to have a child this year, so I need to reserve funds or keep some cash on hand” – Guangzhou
“My child is six months now, and I take a loan for capital turnover” – Chengdu
"As I just bought a house , I have economic pressure now. Taking a loan can help me relieve this stress” – Chengdu
Auto Finance Is Relatively More Accepted to Smart and Independent Females Who Better Enjoy Their Life
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Analysis of China’s Auto Finance CustomersAuto Finance Is Relatively More Accepted to Smart and Independent Females Who Better Enjoy Their Life
Females take up about 20%, of all car users*. While when it comes to people who finance a car, females take up 30%. Female consumers tend to compare a good in different stores to buy the most cost-effective one. Buying a car by taking a loan is considered as a smart consumption pattern and thus being more acceptable to females.
Confident females tend to think and live independent, and they are also financially independent. Car loans provide a good choice for these females.
Females have an urgent need for a car for travelling purposes. Therefore, buying a car by taking a loan can meet their needs of enjoying life.
Lifestyle and values of different genders (%)Total
(N=3511)Male
(N=2203)Female
(N=1308)The most important factors of taking a loan
– interest rate / fees 30 29 32
Comparing the same good in different stores 44 43 46
Considering themselves as independent 26 24 28
Making decisions themselves and do not rely on other people’s advice 50 48 52
Believing that they enjoying life 31 29 33
With credit card, they are able to buy the things they cannot afford before 46 44 49
Buying a car for weekend or holiday travel 30 27 36
*Source: Ipsos database
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Analysis of China’s Auto Finance CustomersAuto Finance Companies’ Advantages Distinguish Them from Others
Auto Finance Companies’ Advantages Distinguish Them from Others
Auto f inance companies: They have convenient procedures, simple process and fast approval. They have relatively longer loan tenor and lower down payment. In spite of an original higher interest rate, auto brands are doing subsidiary campaigns for most of car models which significantly reduce the interest rate to a very low level, sometimes even 0%. The abundant and flexible products provided can meet the individual needs of consumers in the greatest extent. They provide exclusive services to the car brands they belong to, so their products and services are more professional and efficient. Nowadays auto finance companies also actively carry out the used car business. Take VWFC for example. Its product line-up includes Classic Credit, Balloon Credit, Upgrade Finance, Tier Payment, etc. and covers used cars as well. Taking Upgrade Finance for example, it only requires an ID card
and an application form at best and gets approval within 2 hours. The down payment is as low as 20% and most models now have low interest rate which can even be 0%.
Commercial banks: Due to lower funding costs, they can provide relatively lower interest rate and have wider networks. But banks usually only provide standard loans and have restrict requirements for personal qualifications. The approval procedures are more complex, so it takes longer approval.
Credit card: As for consumers who already have a credit card, the loan approval is fast. But the amount of loans is relatively limited and the loan term is short, but for consumers who need a new credit card, the approval process tend to be longer.
Auto finance companies Commercial banks Credit card
Application procedures/ material
The procedures are relatively simple (for VWFC Upgrade Finance, only an ID card and an application form are
required at best)
The procedures are relatively complex (need a series of evidence materials, such as local registered permanent residence, marriage certificates, ID, real
estate proof and income proof)
Simple for existing customer
Interest rate/ feesIn spite of a higher base rate, the interest rate is decreased due to the wide range of commercial policy of all the car
makersRelatively low Relatively low (fee
and interest)
Network coverage A wide coverage of this brand’s dealers’ networks More in the first- and second- tier cities Relatively wide
StabilityAuto finance is the only core business. They provide
exclusive services to the car brands they belong to, so they are dedicate, professional and stable.
Influenced by the policy or the business changes of the commercial banks, they may cancel or reduce the auto finance business periodically.
Flexibility Able to provide different finance products for consumers according to their models and specific needs Usually it is the equal monthly payment
Usually it is the equal monthly
payment.
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Analysis of China’s Auto Finance CustomersDealers Play an Important Role to Influence Consumers’ Decision
Dealers Play an Important Role to Influence Consumers’ Decision
In this survey, 1580 consumers originally didn’t choose to buy a car by loan. Until they visited the dealerships did they come to realize they can and would better finance a car. At last, with the strong recommendation of sales consultants, they chose to buy the car by auto finance. The proportion of this case makes up 45% of the total sample size.
Dealers play double roles in the auto finance business: one is the information sources and the other is the intermediary of formalities. How to leverage the dealers is the key to the development of auto finance.
The time when people decide to use auto finance during car purchasing
Users who decided to buy a car by taking a loan at first(N=1931)
Users who didn’t decide to buy a car by taking a loan at first
(N=1580)
I saw the auto finance brochures when entering the 4s shops
18 27
Sales consultants actively told me information about buying a car by
loan when I entered 7 12
Sales consultants actively told me information about buying a car by loan when we negotiate the price
8 10
Feedback of owners
“I didn’t decide to buy the car by taking a loan. It was because of the strong recommendation of salesmen” - Shanghai
“Sales consultants recommended it and it is convenient to take the loan in the 4s shops directly” - Chengdu
“I decided to buy a German car, but I didn’t have enough money. So I consulted the staff in the 4s shops and they told me there was a promotion that the interest rate of one year was zero and that of two years was low” – Xi’an
“The brochures show that there is a promotion. The monthly payment is low, so I think it is good” – Xi’an
“I had enough money, but the sales manager told me taking a loan is more appropriate. Then because of taking a loan, I bought a more advanced car” - Weifang
Information sources for auto financeUsers who decided to buy a car by loan at
beginning(N=1931)
Users who didn’t decide to buy a car by loan at beginning(N=1580)
Sales consultants 70 79
Brochures in 4s shops 53 58
“I decided to buy Sagitar but the price went beyond my budget. Salesmen in the 4s shops recommended me to take a loan and there would be no interest if I can pay off the loans within 1 year.” – Xi’an
“I had enough money for the car, but the staff in 4s shops told me there was a promotion with CCB credit card. The interest rate for two years is zero. So I think it was suitable to me” – Xi’an
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Analysis of China’s Auto Finance CustomersDiversified Products by Auto Finance Companies Can Better Satisfy Consumers
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Diversified Products by Auto Finance Companies Can Better Satisfy Consumers
Consumers believe that it is not a burden for them to repay the loan within 2–3 years with a down payment of 30%-50%. Also, there is not too much pressure on them to undertake the monthly payment. Therefore, this method can meet their needs to manage money wisely and relieve financial pressure.
The percentage of the consumers who choose to pay 20%-30% down payment to auto finance companies is obviously higher than the percentage of consumers of
commercial banks and credit card. The reason is that auto finance companies have more flexible and comprehensive approval mechanism and they, on the premise of controlled risks, can allow consumers to take a loan with much lower down payment. On the other hand, auto finance company consumers choose less classic credit as auto finance companies provide much more various products, like Balloon payment Tier Payment and Upgrade Finance.
Down payment Total Auto finance companies Commercial banks Credit card
Repayment methods Total Auto finance companies Commercial banks Credit card
Average capital plus interest
Loan Term Total Auto finance companies Commercial banks Credit card
60 Months
48 Months
36 Months
24 Months
18 Months
Less than 12 Months
2
4 2 4 44 1 5 5
2 3 1
28
28 24 30 27
23 28 33
45
34 37 31 39
59 44 37
24
12
58 55 59 58
10 13 14
17 25 17 11
16 24 29
70% Payment Down
50% Payment Down
30% Payment Down
20% Payment Down
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Analysis of China’s Auto Finance CustomersMain Factors That Influence Consumers’ Buying Behavior
Main Factors That Influence Consumers’ Buying Behavior
From the auto finance consumers’ perspective, the top 3 factors which are considered as main factors are down payment(83), loan tenor(75) and repayment method(69)/interest rate(69).
Auto finance companies take even higher percentage in terms of down payment(90), loan tenor(88) and repayment method(82), which proves the fact that lower down payment, longer tenor and more flexible repayment method provided by auto finance companies indeed stimulate consumers to choose them.
Factors Total Auto finance companies Commercial banks Credit card
Down payment
Loan Tenor
Repayment method
Interest rate/ fees
Other factors
The most important factor Key factors
8323 9018
9 69 9 82
30 69 26 73
14 60 10 41
24 75
7416
15
13 66
40 77
16 57
7237 88
8427
23
8 66
27 66
15 64
72
Feedback of owners
“I didn’t think of taking a loan at first. But after the promotion, the interest rate decreased by 1%(3000 RMB). So there was no interest rate and no fees." – Beijing
"I can save 30,000 RMB after taking a loan. There was no interest rate.” – Shanghai
“There was a promotion. The loan term is one year, without interest rate . I can repay the loan in stages and I didn’t need to provide the real estate certificate.” – Guangzhou
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Analysis of China’s Auto Finance CustomersService Depth and Breadth Is the Long-term Development Strategy
Service Depth and Breadth Is the Long-term Development Strategy
At present, overall satisfaction of credit card is higher than commercial banks and auto finance companies. The reason for credit card’s high satisfaction is that for existing credit card users, customers credit record is available already so that it takes less time and easier process to apply and to get approved.
However, there is also a case l ike VWFC whose satisfaction of 69% is higher than the mean level. The reason for VWFC’s high satisfaction is that VWFC’s well trained F&I managers offer professional consultant and actively support customer to go through the apply process. In addition, strong in-house Customer Care Department and efficient application process also add a degree of satisfaction.
Information sources Total Commercial banks Credit card Auto finance companies
Introduction of sales consultants 75 77 65 80
Recommendation of experienced friends 74 69 75 87
Promotion brochures in 4s shops 62 61 63 64
Introduction on manufacturers website 56 53 52 73
Internet 41 41 48 30
Newspaper 27 30 28 17
Television 26 28 25 21
Magazine 23 25 25 15
17 21 9
47
14
6249 46
109 11 6
8 7 12
10
8
8 9 4
2 2 2 1
2 1 3 1
3 4 3 2
Most reliable channels Main Channels
Satisfaction Total Commercial banks Credit card Auto finance companies VWFC
Top 3 satisfaction (%) Mean
57 556969
50
7.19 7.19 7.287.58 6.76
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The education level of VWFC consumers (%)
Analysis of VWFC Chinese ConsumersEducation Level of VWFC Consumers: More and More Accepted by Higher Educated Customer
Education Level of VWFC Consumers: More and More Accepted by Higher Educated Customer
After VWFC rolled out their business from Beijing and it surrounding area to the entire country in 2007, significant change in the readings of customer education shows that higher educated customers are taking a larger portion.
With more low-interest auto finance products introduced into the market, the affect has been widely seen that auto finance can help customers to better manage their money. As a result, higher educated customers who are usually regarded relatively advanced become more willing to choose auto finance even if they have enough cash.
14
Above bachelor degree Bachelor degree Lower than bachelor degree
2004
0
10
20
10
30
40
50
60
70
80
90
100
2005 2006 20082007 2009 2010 2011 2012 2013 2014
18 15 12 8 8 6 5 4 5 8 6
4339
36 31 31
29 31 3336
50 50
Source: VWFC database
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5261 60 65 64 63 59
42 44
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Analysis of VWFC Chinese ConsumersSigns of VWFC Consumers : Rational and Balanced Libras Are More Willing to Choose Auto Finance
Signs of VWFC Consumers : Rational and Balanced Libras Are More Willing to Choose Auto Finance
Guarded by Venus, Libras are born elegant and aspire after gracious lifestyles. Owning a car enables them to live in order with serenity.
Libras tend to play the neutral parts, for there is always an invisible ‘Libra’ in their hearts, weighing everything happened in life. They are constantly contemplating and judging, and by making small adjustments to decisions
attempting to reach a balanced outcome. Pursuing balance is their ultimate principle.
Consequently, Libras are more willing to purchase a car by taking a loan while making the trade-offs between making a major expenditure and enjoying life. After all, Libras are very unlikely to put themselves in disgraceful financial predicaments.
Constellation structure of VWFC consumers (%)
Capricorn Taurus VirgoAquarius Gemini LibraPisces Cancer ScorpioAries Leo Sagittarius
8 8 88 8
7 7
8
89 9
12
Source: VWFC database
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Analysis of VWFC Chinese ConsumersAge of VWFC Consumers: Win the Young, Win the Future
Age of VWFC Consumers: Win the Young, Win the Future
10 years ago the largest group of consumers is 36-45, and nowadays it has turned to be 26-35. The era of younger generation has arrived. The reason behind is that post-80s has grown up and this generation is more willing to enjoy life and live in the moment compared with ports-70s when they were at their 20s.
Post-80s have higher demand of cars , and more importantly, they are even more willing to use auto finance. In the future, with more post-90s entering the market, this trend will be even more significant. Therefore, guiding and attracting more young consumers will be the key to the future development of auto finance institutions.
Age structure of VWFC consumers (%)
17 20 21 24 2733
3843
4343 43
2227 22
21 19 18 16 14 14 13 126 7 8 6
55 48 4950
4944
4136 33 30 28
2004 2005 2006 20082007 2009 2010 2011 2012 2013 2014
1 3 7 11 14
3 3 2 245 4
36-4546-5556-65 18-2526-35
Source: VWFC database
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Analysis of VWFC Chinese ConsumersValue and Lifestyle of VWFC Consumers: They Make Their Efforts Down-To-Earth to Have the High Quality Life They Want
Value and Lifestyle of VWFC Consumers: They Make Their Efforts Down-To-Earth to Have the High Quality Life They Want
VWFC consumers focus on life quality, have social responsibilities and fight for ideal life step by step.
The value of VWFC consumers is similar to auto finance consumers in total. VWFC can attract a wider range of consumers.
Total
Commercial Banks
Credit card
Auto finance Company
VWFC
I tend to spend more time with family
I have a good plan for my life and I will keep moving towards that goal
I think everyone (incl. myself), especially successful people, need to shoulder social responsibilities
I hope I can keep challenging myself and be better
I hope that, with my own efforts, I can have positive influence on my surrounding world
I seek for a unique and individualized lifestyle
I require that every aspect of my life should be fresh and new
I always make decision on myself and I do not rely on other people’s advice
I stick to my own standard and will not lower my requirements due to the influence of other reasons
I think my financial condition is safe
I hope my success and achievements can catch others’ attention
I hope everything in my life can be natural, simple and peaceful
I will always fight for the things I want
I am picky in shopping and prefer the newest and most stylish things
I adhere to the life principle that “a man who is contented will be happy”
Live in the moment and enjoy the current life is the most important
I want everything I use can match my social status
With credit card, I can buy the things I can’t afford before
I hope I can always be the leading one
I prefer high-end commodities, no matter how expensive they are and no matter how much efforts they will take from me
买买买买买买买买买买买买买买买买I always compare the same good in different stores just to buy the most cost-effective one
It is important for me to have the same grade goods with my friends
I don’t like to be outstanding and I don’t want to be special
I prefer stable and regular life rather than life full of changes
I don’t like seeking for material comforts I think it’s good enough just to meet daily needs
Lifestyle of VWFC Consumers（%）
N=227
30 40 50 60 70
I have a good plan for my life and I will keep moving towards that goal
“I will try my best to be better. The higher I climb, the farther I can see.” – Beijing
“I think everyone should have a goal. A goal which you can achieve through your efforts. If I have a goal, I will fight for it
and will feel satisfied when I succeed.” - Beijing
“Where there is a will, there is a way.” - Beijing
I hope that, with my own efforts, I can have positive influence on my surrounding world
“Just keep going, just one more try.” – Shanghai
I prefer high-grade commodities, no matter how expensive they are and no matter how much efforts they will take from me
“Seeking for the perfect and you can achieve it.” - Shanghai
I think my financial condition is safe
”I was a sales person before and had some saving. So at that time I spent money quickly.” - Shanghai
“I spend money without too much thinking and I do not save money.” - Shanghai
I am picky in shopping and prefer the newest and most stylish things
“I prefer new-tech products, because I think they can help me keep pace with the latest technology. If I have the cutting
edge technology, then I think I am the daring pioneer of fashion.” - Shanghai
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Analysis of VWFC Chinese ConsumersValue and Lifestyle of VWFC Consumers: They Make Their Efforts Down-To-Earth to Have the High Quality Life They Want
Value and Lifestyle of VWFC Consumers:They Make Their Efforts Down-To-Earth to Have the High Quality Life They Want
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Analysis of VWFC Chinese ConsumersInformation Sources and Decision Making Process of VWFC Consumers: VWFC Has Won the Word-Of-Mouth
Information Sources and Decision Making Process of VWFC Consumers: VWFC Has Won the Word-Of-Mouth
* 数据来源：Ipsos 汽车金融用户调研
VWFC has good reputation, so many consumers are willing to recommend their friends to buy a car by VWFC loan.VWFC has done a good job in channels of communication. As VWFC releases the “Upgrade Finance”, the proportion of buying a higher-grade car by taking a loan is relatively higher.
Information sources of VWFC consumers (%)N=227
Decision making process of VWFC consumers in taking a loan to buy cars (%)
N=227
52
12
78
78
9 71
8 66
6 38
3 24
3
2
5
24
24
19
11
22
53
22
19
13
11
10
Before going to 4s, I have known the information of auto finance by other channels
I decided to buy a car by loan at the beginning
I saw the auto finance brochures when entering the 4s shops
By taking the loan, I bought a higher level model or the one with better configuration
Sales consultants actively told me about buying a car by loan when I entered the shop
I actively asked the sales consultants about auto finance when I entered the shop
I didn’t decide to buy a car by loan. But I changed my mind after knowing the information
“ I think using full payment to buy a car is a waste of cash flow. If there is no loan interest rate, I definitely will choose to take a loan. So I think the promotion concerning interest free loan is really
attractive. This is the advice of my friend.” - Shanghai
Feedback of owners
“My friends recommend me to buy a car by loans through VWFC as they all take the loan from VWFC. By doing so, I can make more investment.” - Shanghai
“At first, I didn’t want to take a loan. But one of my friends bought a old-styled Sagitar by loans. He told me it did not need full payment. So I decided to do same, as there was no car at hand at that
time. Even if I pay the full payment, I still need to wait for the car.” - Beijing
Recommendation of experienced friends
Introduction of sales consultants
Promotion brochures in 4s shops
Introduction on manufacturers website
Internet
Newspaper
Television
Magazine
Broadcasting
Outdoor
Most reliable channels Main Channels
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Analysis of VWFC Chinese ConsumersTypical Consumer - Golf
Typical Consumer - GolfPersonal profile
Mr. Hu, from Shenzhen, is now 32 years old. He works in a law firm after graduation and with several years’ efforts, he now earns 15,000 RMB every month.
He has been married for 4 years and now has a one-and-half- year-old daughter.
Even though they can live with their parents, Mr. Hu and his wife still want an independent space. So they bought a commodity house in the Longgang District by taking a loan. After this, they have a new goal.
Like all the post-80s, Mr. and Mrs. Hu have abundant leisure activities, like going fishing, outdoor activities, watching movies, going to the Karaoke and playing Majiang. They decide to buy a car because it can give convenience to their life and can help them to enjoy life. More importantly, it is inconvenient for Mrs. Hu to take public transportation or taxi to work during pregnancy. So they make the decision to buy a car.
Decision making process
They have little saving after paying the down payment of their house.
Their daughter brings happiness as well as responsibility to them.
With the experience of buying a house by loan, Mr. and Mrs. Hu decided to buy a car by loan as well. They consulted some state-owned commercial banks about the qualifications, procedures, interest rate, loan term and method of repayment of auto loans.
When they went to the 4s shop, Mr. Hu asked the sales consultant some questions. After the introduction of the sales consultant, Mr. Hu found that VWFC can also provide auto loans. Besides, considering the inconvenience of applying a loan from commercial banks, VWFC simplifies the application materials and procedures. In order to buy a car by loan, Mr. Hu only needs to hand out his ID card and an application form. Other procedures like getting a license plate for the car or making mortgage registration can all be finished at 4s, which can help him to have his car earlier.
After considering the down payment, interest rate and the monthly installment payment, Mr. Hu decided to buy a Golf 1.4T with a down payment of 50% and a Classic Credit with a term of 36 months.
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Typical Consumer - TiguanPersonal profile
Mr. Wang, from Chengdu, 37 years old, engages in the construction trade work. Now he lives in a two-room house in the Paris Community with his wife and 4-year-old son.
Mr. Wang likes listening music, playing badminton and travelling to peaceful and relaxing places.
Mr. and Mrs. Wang decide to buy a car as they need to send child to kindergarten and to travel outside in weekends or holidays.
After comparing with the Dongfeng Nissan Qashqai, Mr. Liu decided to buy Shanghai VW Tiguan as it has a good reputation for safety.
Decision making process
Mr. Wang knew it from the broadcasting that VWFC had a finance policy of subsidized loans for all the series of models. Therefore, during the price consultation with the sales consultant, Mr. Wang asked about the related policies of auto finance. The sales consultant recommended two methods of taking a loan, one is VWFC, the other is CCB credit card.
Mr. Wang did not have a CCB credit card and it would take him ten working days to apply for one. Also, there would be some fees and interest rate.
As Mr. Wang wanted to have the car before the end of the year, he chose the more convenient VWFC.
At last, Mr. Wang applied for a 30% down payment and a Classic Credit with a tenor of 36 months.
Analysis of VWFC Chinese ConsumersTypical Consumer - Tiguan
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Analysis of VWFC Chinese ConsumersTypical Consumer - Touareg
Typical Consumer - TouaregPersonal profile
Mr. Li, from Xi’an, 42 years old, is a real estate sales manager.
In addition to the salary, Mr. Li also makes some investment like real estate, stocks, funds, bonds, trust and other financial products.
In his spare time, Mr. Li likes playing golf, drinking tea and going for a short trip with his family members or having a family reunion.
Mr. Li thinks that men should be stable and level-headed. He also wants his car to have the same features.
Mr. Li has an Audi A6L, but he needs a bigger SUV with better trafficability for travelling and construction site inspections.
After comparing BMW X5 and Mercedes-Benz ML, Mr. Li bought VW Touareg.
Decision making process
As for Mr. Li, buying a car is just a consumption behavior. Different from the real estate, car does not have value-added function. What’s more, the car is easy to depreciate. Therefore, buying a car with full payment can only result in depreciation, but buying it by loan can save Mr. Li’s money to do other investment. Auto finance is not only a consumption behavior, but also a new financial management mode.
After comparing the requirements, procedures, interest rate, loan term and method of repayment of auto loans in state-owned commercial banks and auto finance companies, Mr. Li finally chose VWFC.
At last, Mr. Li bought a VW Touareg with the down payment of 30% and a Classic Credit with a tenor of 36 months.
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Analysis of VWFC Chinese ConsumersTypical Consumer - Skoda Octavia
Typical Consumer - Skoda OctaviaDecision making process
The budget of Mr. Gao for a car was 150,000 RMB. At first, he decided to buy YiZhi version with automatic transmissions. But during his test drive, he was attracted by the panoramic roof, multi-functional driving wheel, parking sensors and leather seats of YiJun version.
But the price of Yijun version exceeded Mr. Gao’s budget. The sales consultant then recommended the Classic Credit of VWFC to Mr. Gao, which made him decide to buy Yijun version finally.
At last, Mr. Gao bought the Skoda Octavia 1.6L Yijun version with a 30% down payment and a Classic Credit with a tenor of 24 months.
Personal profile
Mr. Gao, from Weifang, 35 years old, is a staff member in a public institution.
Mr. Gao is outgoing and is loyal to friends. He likes the comfortable and cozy life.
In his spare time, Mr. Gao likes travelling, getting together with friends and watching movies.
Mr. Gao had a Chevrolet LOVA before. But as he always travels with friends and family members, LOVA is not big enough for him. He decides to buy a sedan with a bigger space.
Mr. and Mrs. Gao have some saving. As their son is 14 years old and he is now in the middle school, Mr. and Mrs. Gao are less likely to spend money in a large sum. Even if they cannot afford a premium one, they would not choose a low-end one.
After comparing Shanghai VW Santana and Lavida, Mr. Gao decided to buy Skoda Octavia as its trunk design is attractive. The big trunk of Octavia meets Mr. Gao’s traveling needs.
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Analysis of VWFC Chinese ConsumersTypical Consumer - Audi A6L
Typical Consumer - Audi A6LDecision making process
Doing business needs a great amount of cash liquidity, so Mr. Sun wants to have more cash at hand for the sake of business emergency. Therefore, when buying Audi A6L, he hopes to use the auto finance.
Mr. Sun told the sales consultant about his wish. After knowing about Mr. Sun’s conditions and knowing that he wants a convenient process, the sales consultant recommended him VWFC. By VWFC, Mr. Sun just needed to hand out his ID card and an application form. He didn’t need to provide real estate certificate, income proof or marriage certificate and all the procedures like getting a license plate for the car or making mortgage registration can all be finished at 4s. So this can simplify the application process, approval process and decrease the time for approval.
At last, Mr. Sun bought a Audi A6L with 60% down payment and a Classic Credit of a tenor of 18 months.
Personal profile
Mr. Sun, from Hangzhou, 36 years old, is an owner of a private enterprise of building material business.
His annual household income is over one million. Now he lives in a quite and nice-view Chinese style sunshine room with his wife and 3-year-old kid.
In his spare time, he likes playing golf, playing Texas Hold’em and tasting the authentic Hangbang cuisine with his business associates or friends.
Mr. Sun’s dress style imitates that of Tiger Woods and his clothes are mainly bought in Hangzhou Yintai Center.
Mr. Sun owns a Megane Scenic. It has a big space and is practical, which is a good means of transport.
With the expansion of his business as well as with the rises in the grade of his business negotiation and engineering project, Mr. Sun needs a more luxurious commercial vehicle. After comparing the BMW 530 and Audi A6L, he decided to buy the latter one as it has more prudent sedate interior.
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Analysis of VWFC Chinese ConsumersTypical Consumer - Porsche 911
Typical Consumer - Porsche 911Personal profile
Mr. Liu, from Beijing, is now 26 years old. He is a self-employed person and now has a house in downtown Beijing.
He likes going to Sanlitun village and Hong Kong for shopping.
In his spare time, Mr. Liu likes rock climbing, riding, wine, coffee and photography.
Mr. Liu also likes self drive tour and the farthest place he travelled is the Queenstown of New Zealand.
Apart from Porsche 911, Mr. Liu also has a BMW X1. The latter one is more suitable for daily travel as it is low-profile.
Decision making process
Mr. Liu frequently changes his car. Usually, he drives a car for 3-5 years. Therefore, buying a car with full payment is not appropriate for him.
The Balloon Credit released by VWFC attracts Mr. Liu, because with the assistance of dealers, the balance payment can even be used to replace a new car with the second-hand car.
At last, Mr. Liu bought a Porsche 911 with Exquisite Easy Loan.
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Presented by Volkswagen Finance (China) Co., Ltd.Survey Conducted by Ipsos