Wednesday, May 29, 2024
BusinessTesla cancels 0 down payment option in China due...

Tesla cancels 0 down payment option in China due to ‘surge in orders’


Just three days after becoming available, Tesla has canceled the 0 down payment option it offered in China.

Tesla’s financing lease service has removed the 0 option and the minimum percentage has become 10 percent, information on its official China website shows.

A Tesla customer service agent said they were just notified today that the 0 down payment option has been canceled and changed to a minimum of 10 percent down payment, reported.

The reason is that the 0 down payment plan has led to a surge in orders, making the vehicle delivery time longer, the customer service agent said.

The move is to ensure that the delivery of vehicles to users is on time and that users who have previously locked in to the 0 down payment plan are not affected, the person said.

Tesla China’s official website launched the new financial product on November 1, which allows consumers to purchase vehicles through a zero-down payment finance lease model.

If consumers plan to purchase the Model Y standard range version priced at RMB 276,000 ($43,100), the down payment under the program is 0, and the monthly payment is RMB 5,520 when paid back in five-year installments, according to Tesla.

The actual cost to the consumer to purchase the vehicle is RMB 331,200, which is RMB 55,200 higher than the original price of the vehicle, implying a 4 percent annual interest rate.

In addition, Tesla offers a flexible financing lease option with a repayment period of up to five years.

Under the flexible option, consumers can choose a 1-year option with a 50 percent down payment and a 50 percent down payment.

They can also choose a 3-year or 5-year option with a down payment starting at 20 percent and a final payment of 30 percent of the vehicle price.

For comparison, information on Tesla China’s website shows that the financial institutions it works with offer loan programs that require a minimum down payment of 15 percent and a repayment period of up to 60 months.

Tesla China’s wholesale sales in September reached 56,006 units, up 394 percent year-on-year and up 26.5 percent from August, data released by the China Passenger Car Association (CPCA) early last month showed.

The company’s October sales figures in China are expected to be released by the CPCA later this month.

This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.

CnEVPost is a website focused on the coverage of the new energy vehicle industry in China. As with our original intent for CnTechPost, there are a lot of interesting things happening in the Chinese EV industry every day, but they are not covered by the mainstream English language media. We're here to keep track of what's happening in the Chinese EV industry and strive to be the first to publish what we see in English.