Is auto guarantee the same as auto finance?

The difference between auto financing companies and auto guarantee companies lies in their different business scope. Auto financing companies are engaged in loans and other businesses, and auto guarantee companies are engaged in providing guarantees and auto mortgages.

legal ground

Article 12 of the Company Law of People's Republic of China (PRC)

The business scope of the company is stipulated in the articles of association and registered according to law. A company may amend its articles of association and change its business scope, but it shall register the change. Projects that are required to be approved by laws and administrative regulations in the company's business scope shall be approved according to law.

Article 68 1

A surety contract is a contract in which the surety and the creditor agree that the surety will perform the debt or assume the responsibility when the debtor fails to perform the due debt or the circumstances agreed by the parties occur.

Article 682

The guarantee contract is a subsidiary contract of the principal creditor's rights and debts contract. If the principal creditor's rights and debts contract is invalid, the guarantee contract is invalid, unless otherwise stipulated by law.

If the debtor, guarantor and creditor are at fault after the guaranty contract is confirmed to be invalid, they shall bear corresponding civil liabilities according to their faults.