On April 17th, according to the official website of China FAW Group, in order to better support the group's main business, innovate and make full use of financial tools to promote car consumption.
Against the background of the People's Bank of China and the China Banking and Insurance Regulatory Commission's "Notice on Adjusting Policies Related to Auto Loans", on April 16th, FAW Automotive Finance Co., Ltd. comprehensively adjusted the down payment ratio for auto loans and launched zero down payment financial products.
The zero down payment financial plan covers brands such as FAW Hongqi, FAW Besturn, FAW Toyota, FAW Volkswagen/Jetta, and FAW Audi.
It is reported that on April 3rd of this year, the People's Bank of China and the China Banking and Insurance Regulatory Commission jointly issued the "Notice on Adjusting Policies Related to Automobile Loans," which stated:
"For self-used traditional fuel vehicles and self-used new energy vehicles, the maximum loan-to-value ratio is determined independently by financial institutions, and the maximum loan-to-value ratio can reach 100%."
Currently, several automakers including FAW Toyota, Tesla, Dongfeng Honda, and GAC Toyota have chosen to follow the new car loan policies and have introduced financial schemes with 0 down payment and 0 interest.
For example, FAW Toyota has introduced a financial scheme called "Up to 8 years with 0 down payment, 36 months with 0 interest, and flexible 505," significantly lowering the threshold for purchasing cars. In the conventional automobile finance market, the down payment ratio is usually 20%-30%.
Some industry insiders have indicated that the reduction in the down payment threshold for loaned car purchases is expected to boost consumption vitality in the automobile market.
