Tesla offers loans in China to electric vehicle buyers to make electric vehicles more affordable
Tesla now offers vehicle finance services to its customers in China, reports the South China Morning Post. The goal is to make its electric vehicles made in China more affordable. Financing includes options where buyers don’t even have to pay a down payment.
The article stated that customers who choose a standard 276,000 yuan ($ 43,126) Model Y line with zero down payment must pay a monthly payment of 5,520 yuan ($ 862.50) over five years. During that five-year period, customers who choose this particular package will end up paying 331,200 yuan ($ 51,749). Yet that is how loans work. You pay a little more than the actual price (thanks, interest). This reflects an annual interest rate of 4% according to Tesla’s official Weibo account.
The article also pointed out that in China, an automobile manufacturer cannot offer financing services without the approval of the banking regulator. A sales manager at Tesla’s HKRI Taikoo Hui showroom told the South China Morning Post that some of his customers were excited to learn more about the details of Tesla’s financing plans. Steve Shi, Director of Juchen Auto Trade, said South China Morning Post, âAuto loans have been well received by young drivers in China in recent years. Tesla’s auto loan business is expected to fuel its business growth in China. “
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