On July 1st, Tesla officially released its latest car purchase discount policy. Within this month, users who place orders to purchase designated vehicle models can enjoy a five-year interest-free policy without additional conditions such as old car replacement. The participating financial institutions for this special financial plan include several large banks such as CM Bank, Ping An Bank, WeBank, China Construction Bank Corporation, Bank of Communications, and Bank of China.
It is said that car zero down payment is enough to shatter the three views, but even more bold is the zero interest car purchase policy launched by Tesla.
On July 1, Tesla officially released its latest car purchase promotion policy. Within this month, users who place orders to buy certain versions of car models can enjoy a five-year zero interest policy. It is worth noting that Tesla's auto credit policy has been further upgraded compared to the past—no longer attaching conditions such as old car trade-in.
Tesla's zero down payment promotion policy has been renewed.
On July 1 (including), during the period to July 31 (including), users who place orders for designated versions of Model Y and Model 3 car models can apply for preferential financial plans. For example, in the case of Model Y rear-wheel drive version total vehicle price of 2.499 million yuan, choosing a 0-interest five-year loan plan, if the down payment is 0.799 million yuan, the annual interest rate is 0.00%, and the monthly payment is about 2833 yuan.
For example, in the case of Model 3 rear-wheel drive version total vehicle price of 2.319 million yuan, choosing a 0-interest five-year loan plan, if the down payment is 0.799 million yuan, the annual interest rate is 0.00%, and the monthly payment is about 2533 yuan.
In addition, for unregistered vehicles, users can also apply for a down payment of at least 45,900 yuan, enjoy a low-interest plan for 1-5 years, with an annual fee rate as low as 0.5% (equivalent to an annual interest rate of 0.92%) benefits.
According to Tesla's official website, multiple banks have joined the loan support campaign for car purchase discounts this time. It is reported that the financial incentive plan applicable financial institutions in this case include CMB Bank, Ping An Bank, WeBank, China Construction Bank Corporation, Bank of Communications, Bank of China, and other large-scale banks.
The financial leasing program was drastically adjusted and the promotion was upgraded, with a significant increase in sales.
It should be noted that the sales volume since the last car purchase promotion was issued should be impressive. Relevant data shows that Tesla China's wholesale sales in May this year was particularly outstanding, reaching 72,573 units, with domestic sales exceeding 55,000 units, an increase of 77% month-on-month and 30% year-on-year.
Is zero-interest car purchases reliable?
On the surface, although buying certain versions of Tesla requires paying tens of thousands of yuan in down payment, consumers still enjoy certain benefits without paying interest when repaying the loan in the coming years. However, in this way, participating banks are not "making a profit"?
Automotive 4S store salespeople say that traditional car companies have also released similar policies of zero-interest car purchases offline, and consumers can indeed apply for fixed monthly payments after applying for loans at specific banks. However, in fact, banks did not receive any interest, it was only paid by the automotive 4S store. Generally speaking, the automotive 4S store will charge an additional fee from the car owner through service fees and other methods to "make up" for the interest paid by the bank. At the same time, for each car purchase user who obtains a loan, the 4S store can also obtain a corresponding rebate from the bank.
In addition, some automotive sales professionals have told reporters that policies similar to zero interest can also be regarded as pricing strategies for promotional sales. The total price of the car remains unchanged but the zero interest is provided as a way to promote auto sales. The cost of bank loans is certainly interest-bearing, but it may be paid by the automaker or dealer.
Multiple banks promote automotive consumer finance.
It is worth noting that against the background of weak credit growth in traditional industries in recent years, many banks have made automotive consumer finance a key point of their efforts.
The 2023 annual report of Ping An Bank shows that it newly issued personal new energy vehicle loans of 36.803 billion yuan throughout the year, a year-on-year increase of 47.8%. Ping An Bank also stated that it will adhere to its retail positioning strategy and focus on enlarging medium- and low-risk customer groups, increasing investment in licensed mortgages, new-energy vehicle loans, and other products, and accelerating the reshaping of credit-based products.
In its 2023 annual report, Industrial Bank also pointed out that it will give high importance to five new growth tracks: science and technology finance, inclusive finance, energy finance, automotive finance, and park finance.
Looking at specific products, major banks are also making efforts to promote auto consumer loans. For example, the Agricultural Bank of China's credit card "Happy Points Easy" business, has released preferential policies for car installments. The bank's website states, "Low annual interest rates, low installment interest, and a more favorable car buying experience" and "up to five years installment payments, enjoy car life in advance." "Happy Points Easy" is a credit card installment payment product provided by the Agricultural Bank of China to meet customer credit consumption needs, with a maximum limit of 1 million yuan. The Happy Points Easy series includes Happy Points Easy (Standard Edition) and Consumer E Installment Payment.
In addition, CM Bank's personal car loans offer loan amounts of up to 2 million yuan, with a minimum loan period of 5 years and a minimum down payment of 20%. Bank of China's personal consumer auto loans are divided into different customer groups, with a 40% down payment for ordinary customers and a maximum of 3 years; premium customers enjoy a 30% down payment discount, with a maximum loan term of 5 years.
Some regional banks have also joined the battlefield of auto consumer loans. In April of this year, GRCB's credit card official WeChat account announced that it will launch credit card auto installment promotions, with a high limit of 500,000 yuan, and a limited-time annual interest rate as low as 3.3%. The installment period is up to 5 years, and up to 85% of the bare car price can be loaned, which can be applied for new energy and fuel vehicles.