Caixin News Agency, July 2nd (Reporter Peng Kefeng) - It has been said that the "zero down payment" for cars is enough to shatter the reputation of consumers, but even bolder is Tesla's zero interest car purchase policy.
On July 1st, Tesla officially released its latest car purchase discount policy. Within this month, users who place orders to purchase specified versions of the vehicle can enjoy a five-year zero interest policy. It is worth noting that Tesla's automotive credit policy has been further upgraded compared to this, with no additional conditions such as old car replacement.
Tesla's zero down payment discount policy is revitalized
On July 1st, Tesla announced its latest limited time car purchase discount policy. The specific plan is to apply for a discounted financial plan for the specified versions of Model Y and Model 3 models placed between July 1st (inclusive) and July 31st (inclusive). For example, taking the Model Y rear wheel drive version with a total price of 249900 yuan and a zero interest loan plan with a five-year term as an example, if the down payment is 79900 yuan and the annualized interest rate is 0.00%, the monthly payment is about 2833 yuan.
For example, taking the Model 3 rear wheel drive version with a total price of 231900 yuan and a zero interest loan plan with a five-year term as an example, if the down payment is 79900 yuan and the annualized interest rate is 0.00%, the monthly payment is about 2533 yuan.
In addition, for vehicles that have not been registered, users can also apply for a down payment of 45900 yuan and enjoy a 1-5 year low interest plan, with an annual fee rate as low as 0.5% (equivalent to an annualized interest rate of 0.92%).
According to Tesla's official website, multiple banks have joined the credit support camp for car purchase discounts this time. It is reported that the participation in the financial discount program is applicable to multiple large banks, including China Merchants Bank, Ping An Bank, WeBank, China Construction Bank, Bank of Communications, and Bank of China.
Caixin News reporters noticed that Tesla had previously released a similar policy in early April this year. At that time, Tesla, together with financial institutions such as China Merchants Bank and Ping An Bank, announced a "zero interest" installment car purchase plan. However, the interest free plan at that time required participation in official car replacement purchases to be enjoyed. The latest policy this time no longer required additional conditions such as old car replacement, which can be said to have been implemented in one step.
It is worth noting that based on the sales after the last car purchase discount was released, the effect should be impressive. According to relevant data, Tesla China's wholesale sales in May this year were particularly outstanding, reaching 72573 units. Its domestic sales exceeded 55000 units, a month on month increase of 77% and a year-on-year increase of 30%.
Is it reliable to buy a car with zero interest?
On the surface, although purchasing the designated version of Tesla requires tens of thousands of down payments, consumers will still enjoy certain benefits in the coming years without paying interest when repaying loans. However, in this way, aren't the banks participating in credit support "making some money"?
In response to this, a salesperson at a 4S dealership in Hunan province told Caixin News that strictly speaking, traditional car companies have previously released offline preferential policies for zero interest car purchases, and consumers can indeed only pay a fixed monthly payment after applying for a loan at a designated bank. But in reality, the bank did not receive any interest, it was just often paid by the car 4S dealership. Generally speaking, car 4S stores will charge an additional fee from the owner through service fees and other means, which can "compensate" for the bank interest paid. At the same time, for every loan user who provides a car purchase, the 4S store can also obtain corresponding rebates from the bank.
In addition, some car sales practitioners told Caixin News that policies similar to zero interest can also be seen as strategies for price reduction and promotion. The total price of the car remains unchanged but provides zero interest. This approach may seem like a loss for car companies and sales, but in reality, in order to boost sales, car companies would have adopted an official policy of lowering prices. Bank loans definitely come with interest, but they may only be paid to car companies or dealers.
Multiple banks are focusing on automotive consumer finance
It is worth noting that in recent years, against the backdrop of weak credit growth in traditional industries, many banks have made automotive consumer finance a key focus of their efforts.
According to the 2023 annual report of Ping An Bank, personal new energy vehicle loans totaling 36.803 billion yuan were issued throughout the year, a year-on-year increase of 47.8%. Ping An Bank also stated that it will adhere to its retail strategic positioning without wavering, and will focus on expanding its customer base to medium and low risks, increasing investment in licensed mortgages, new energy vehicle loans, and accelerating the reshaping of credit products.
Industrial Bank also pointed out in its 2023 annual report that it is highly positioned in the five new tracks of science and technology innovation finance, inclusive finance, energy finance, automotive finance, and park finance.
From the perspective of specific products, major banks are also making efforts to promote automotive consumer loans. For example, the credit card "Lefenyi" service on the official website of Agricultural Bank of China has released preferential policies for car installment payments. The official website of the bank introduces that "low annualized interest rates, low installment interest rates, more favorable car buying experience" and "up to five years of installment payments, enjoy car life in advance." "Lefenyi" is a credit card installment payment product provided by Agricultural Bank of China to meet customer credit needs, with a maximum limit of 1 million yuan. The Lefenyi series of products includes Lefenyi (included version) and Consumer e-installment.
In addition, China Merchants Bank's personal car loan offers a loan amount of up to 2 million yuan, with a minimum loan term of 5 years and a minimum down payment of 20%. Bank of China's personal consumer car loans are divided into different customer groups, with ordinary customers paying a 40% down payment and a maximum of 3 years; High quality customers enjoy a 30% down payment discount, with a maximum loan term of 5 years.
Some regional banks have also joined the battlefield of automotive consumer loans. In April of this year, the official WeChat account of Guangzhou Rural Commercial Bank's credit card announced that it will launch a credit card car installment discount, with a limit of up to 500000 yuan. The annual interest rate of the limited time discount is as low as 3.3%, and the installment period is as long as 5 years. Up to 85% of the bare car price can be borrowed, and new energy fuel vehicles can apply for it.