Auto consumer finance has become a "battleground" for bank credit, on July 1, Tesla launched a 0 interest car purchase financial benefits, this time it is still a number of banks, financial institutions behind the help, 5 years 0 interest plan covers all options, including car paint, interior, wheel shape, etc., compared with the first launch of the program is more flexible.
In today's booming new energy vehicle industry, auto consumer finance has become a strategic highland for major banks to chase, not only preferential interest rates are blooming everywhere, diversified installment subsidy policies, and car companies jointly create "zero interest" and "low rate" packages, which are constantly refreshing the financial options for consumers to buy cars, and behind this, banks hope to inject growth momentum into the retail business sector.
New energy vehicles re-roll credit
"Lower down payment" and "low interest for a limited time"...... In the second half of the year, Tesla once again rolled up to credit. On July 1, Tesla officially announced the limited-time car purchase benefit. Orders placed between July 1 and July 31 can apply for preferential financing plans for select Model Y models. For example, if the down payment is 79,900 yuan and the annualized interest rate is 0.00%, the monthly payment will be about 2,833 yuan.
Orders placed between July 1 and July 31 will be eligible for preferential financing plans. Taking the total price of the Model 3 rear-wheel drive version is 231,900 yuan and the 0-interest loan plan with a five-year term is selected, if the down payment is 79,900 yuan and the annualized interest rate is 0.00%, the monthly payment will be about 2,533 yuan.
Image source: Yitu.com
For unlicensed vehicles, you can also apply for a down payment of 45,900 yuan, enjoy a 1 to 5 year low-interest plan, and the annual rate is as low as 0.5% (equivalent to an annualized interest rate of 0.92%).
A reporter from Beijing Business Daily noted that the financial institutions applicable to the financial preferential program include China Merchants Bank, Ping An Bank, WeBank, China Construction Bank, Bank of Communications, Bank of China, Jiangsu Financial Leasing (only applicable to low-interest programs), and Tianxiada Financial Leasing (only applicable to low-interest programs).
A Tesla experience center in Beijing said that the launch of the 0 interest activity has no interest, no handling fee, the owner of the five installments to pay off the cost of the car and the full cost of the car purchase, but after the loan, the minimum repayment time of the owner needs to be maintained for one year, after one year can apply for early repayment.
As early as the beginning of April this year, Tesla joined forces with China Merchants Bank, Ping An Bank, China Construction Bank, WeBank, Bank of Communications, and Bank of China to officially announce the "0 interest" installment car purchase plan, mainly for Model 3/Y models, but at that time, the 60-period interest-free plan needed to participate in the official replacement of the car to enjoy, and today's financial plan does not need to be replaced by the old car, which is more flexible than the policy in April.
Talking about the reason why Tesla has repeatedly launched interest-free services with banks and other financial institutions, Su Xiaorui, a senior researcher at Suxi Zhiyan, said that car companies and banks jointly launched interest-free services, on the one hand, to seize the opportunity in the new car market, and on the other hand, to be able to provide car consumers with more relaxed financial options. In recent years, with the regulatory support of the new energy market and the price involution of car companies, the joint major financial institutions have launched automobile consumer financial service programs, which has become a common choice for car companies and licensed finance.
The bank's car installment business is in full swing
With the rise in the market penetration rate of new energy vehicles, a new competition around auto finance has been galloping on the track, from low down payment, zero-interest loans, to flexible and diverse installment schemes, banks, car companies are in full swing, Beijing Business Daily reporter noticed that Xiaomi Auto, Xiaopeng, ideal and other new energy vehicle brands have joined hands with banks to launch similar financial preferential programs.
Xiaomi Auto played a financial promotion card on its SU7 full range of models, and owners who ordered SU7 before September 30 can enjoy a down payment as low as 15%, and a period of up to 60 periods of limited-time financial discounts, Xiaomi Auto's official website time-limited discount program calculation shows that the number of installments is 12 periods, 24 periods, 36 periods, 48 periods, and 60 periods, the annualized rate is 2.5%, and cooperative financial institutions include China Construction Bank, China Merchants Bank, Ping An Bank, China CITIC Bank, Bank of Shanghai, Chongqing Rural Commercial Bank, etc.
Taking a down payment of 15% and a loan term of 12 months as an example, the base price of a Xiaomi SU7 model is 215,900 yuan, the down payment amount is 32,400 yuan, and the monthly payment amount is 15,675.24 yuan. If you choose a longer 60-month (five-year) instalment plan, the monthly loan repayment amount is $3,440.90.
Xpeng Motors also launched a number of smart installment plans from July 1st to 31st, with a minimum of 0 down payment and a maximum of 5 years for the conventional balanced plan, with equal monthly repayment; 5050 Easy Purchase Balance Payment Program reserves 50% of the final payment, and the final installment needs to be settled at one time; The flexible final payment plan can choose low down payment, long term, low monthly payment, and reserve the balance payment for one-time settlement. The above financial solutions are provided by Xpeng Financial Leasing, Bank of China, Ping An Bank, China Construction Bank, China CITIC Bank, Industrial and Commercial Bank of China, and Minsheng Bank.
Li Auto has cooperated with China Merchants Bank, Ping An Bank, WeBank, Bank of China, China Construction Bank and other banks to launch zero-down payment products or limited-time low-rate activities. 1-5 years, down payment from 0 yuan, applicable to Li Auto 2024 L series and MEGA; 1-5 years, annualized rate of 2.20% (4.04%-4.20% annualized interest rate converted to simple interest), applicable to customers who complete the deposit payment before 24:00 on July 17.
Recently, a number of banks have launched preferential interest rate activities for new energy vehicles, and the annualized interest rate is as low as 3.6% and the installment interest rate is as low as 0.16%; The "Easy Car Purchase with 0 Down Payment" campaign launched by the Credit Card Center of Bank of Xi'an has a single-period interest rate as low as 0.2%.
Lin Xianping, secretary-general of the Institute of Cultural and Creative Research of Zhejiang University City College, said that the rapid growth of the new energy vehicle market has brought many opportunities to financial institutions, including more customer groups and a broader market space. However, it also brings challenges, such as risk management, product innovation, and market competition. At present, the degree of innovation in financial products between banks and car companies is relatively high, because the new energy vehicle market is in a stage of rapid development, and banks need to continuously innovate financial products to meet market demand. This phenomenon mostly exists in the field of new energy vehicles, because new energy vehicles have high technical content and added value, and need more financial support to promote their development.
It may become a new growth point for retail business
This "marriage" between new energy vehicles and banks is a win-win game, for new energy vehicle brands, through cooperation with banks and other financial institutions, the introduction of low down payment, zero interest loans and other preferential policies, effectively lower the threshold for car purchase, attract more potential consumers, thereby expanding the market base; For banks, through products such as auto loans and installments, financial institutions can open up new revenue streams and enhance profitability.
In order to promote automobile consumption, the People's Bank of China and the State Administration of Financial Supervision jointly issued the Notice on Adjusting the Relevant Policies of Auto Loans, which clarified that the maximum proportion of auto loans issued should be optimized, and financial support for auto trade-in scenarios should be increased.
The market view is that with the rapid popularization of new energy vehicles and the increase in consumer demand for automobile consumption upgrades, auto installment loans may become a new growth point for bank retail. In the view of Zhang Yue, chairman of Aoyu International, auto installment loans may become a new growth point for bank retail. With the rapid iteration of new energy vehicle technology, financial institutions need to be more flexible in adapting to market changes when designing financial products to meet the needs of consumers. In order to take the path of differentiated competition, financial institutions can develop more personalized and differentiated financial products according to the characteristics and market demand of new energy vehicles, such as financial solutions for different models and different consumer groups.
Lin Xianping also held the same view, emphasizing that auto installment loans may become a new growth point for bank retail. New energy vehicle technology is rapidly evolving, and financial institutions need to ensure flexibility to adapt to changes in market trends when designing financial products. In order to take the path of differentiated competition, financial institutions can develop financial products with characteristics and advantages according to the characteristics and market demand of new energy vehicles, such as providing corresponding financial support for the construction of charging facilities, battery replacement, and second-hand car transactions for new energy vehicles. In addition, financial institutions can also strengthen risk management, improve risk identification and assessment capabilities, and ensure the safety and stability of financial products.
The in-depth integration of new energy vehicles and banks' retail business requires not only financial innovation under policy guidance, but also continuous exploration and optimization of product flexibility, risk management and consumption scenario construction by financial institutions. From the perspective of practical operation, Su Xiaorui suggested that banking institutions should pay attention to the relevant construction of automobile consumption scenarios, grasp the characteristics of the financial needs of automobile consumers, do a good job in consumer research, and timely enter the track according to the current new energy competition market situation, so as to provide consumers with convenient and smooth related installment services.
Beijing Business Daily reporter Song Yitong