On May 13th, Tesla China announced the launch of a new "Easy Finance" purchase plan for multiple models including the Model 3, Model Y, and Model Y L. The promotional period for this plan runs until May 31, 2026.
The scheme offers multiple tiers of financial options. Taking the 5-year plan as an example, for the rear-wheel-drive Model 3 priced at ¥235,500, the minimum down payment is ¥55,900 with a monthly installment of ¥2,193. It features an annual interest rate of 0.99% and a final balloon payment ratio of approximately 20% (¥45,500), characterized by "low down payment + low monthly payment + balloon payment."
Currently, Tesla China also provides 0% interest and ultra-low interest loan options, with down payments starting from ¥79,900 and ¥45,900 respectively. Among these, the ultra-low interest scheme has an annual fee rate as low as 0.5%, equating to an annual percentage rate (APR) starting from 0.92%. Furthermore, consumers who order any of the aforementioned three models during the promotional period can enjoy a limited-time benefit of ¥8,000 for select paint options. Customers purchasing a Model 3 may also receive an additional ¥8,000 insurance subsidy, applicable towards the vehicle's final payment, subject to eligibility.
At a Tesla direct sales store in Beijing's Chaoyang District, a sales representative noted that several customers had already inquired about the newly launched "Easy Finance" plan. The current partner banks for this scheme include China CITIC Bank and Ping An Bank, with the bank offering the easiest loan approval being matched based on the customer's qualifications.
This is not the first time Tesla has introduced differentiated financial schemes. On January 6th of this year, Tesla China first offered a 7-year low-interest purchase plan for the Model 3, Model Y, and Model Y L. For instance, for the Tesla Model Y L priced at ¥339,000, the 7-year low-interest plan featured an annual fee rate of 0.5% (equating to an APR of 0.98%), a down payment of ¥99,900, and a loan amount of ¥239,100.
Subsequently, several other automakers quickly followed suit. According to incomplete statistics, in the first two months of 2026 alone, at least over ten automakers and more than twenty brands, including Li Auto, XPeng, NIO, Xiaomi, Changan Deepal, and Great Wall Haval, launched 7-year ultra-long-term low-interest car purchase plans.
However, visits to multiple 4S dealerships in Beijing on May 13th revealed that the 7-year low-interest auto loans, which had been promoted by several automakers for months, collectively expired on April 30th. Current financial offerings from various brands are now diverging. Unlike Tesla, automakers such as Xiaomi, NIO, and XPeng are primarily promoting shorter-term interest-free periods.
Taking Xiaomi Auto as an example, the YU7 offers 3-year 0% interest, while the SU7 Ultra version provides 5-year 0% interest. The new-generation SU7 only has low-interest options: a 5-year low-interest plan (APR 1.99%) with a down payment starting from ¥49,900, or a plan with a 15% down payment and a 2.5% APR, with the maximum installment period being 60 months (5 years).
NIO is primarily promoting a 3-year 0% interest, 0 down payment financial plan. A NIO sales representative mentioned that models like the ET7 and EC7 can enjoy 5-year 0% interest if orders are locked in by May 31st, while options like the ET5 and the all-new ES8 have the 3-year 0% interest, 0 down payment choice. However, it was noted that this 3-year 0% interest, 0 down payment plan is actually structured as a 5-year installment: interest-free for the first 36 months (3 years), followed by 24 months with an annual fee rate of 3% (equating to an APR of 5.64%). The NIO sales representative emphasized that the loan can be settled early upon maturity without any handling fees.
Some viewpoints suggest that the previous surge in 7-year auto loans did not continue due to regulations stipulated in the "Automobile Loan Management Measures" which state that "the term of an automobile loan (including extensions) shall not exceed five years."
A seasoned banking research analyst previously explained that while bank funding costs are variable, locking in a low fixed rate for 7 years exposes the bank to potential losses if market interest rates rise in the future. In an environment of interest rate marketization, such long-term fixed-rate loans passively extend the risk duration of a bank's balance sheet, which is detrimental to liquidity management.
The analyst further pointed out that automobiles are consumer goods with high depreciation rates. Should a car owner's repayment capacity decline, the default loss faced by financial institutions would be significantly higher compared to products with shorter loan terms, such as 3-year loans.
In fact, the ultra-long-term low-interest auto loan initiatives have not delivered the expected boost in sales for automakers. According to the latest data from the Passenger Car Association, retail sales of passenger vehicles in China for the first four months of this year reached approximately 5.604 million units, marking a year-on-year decrease of 18.5%.
On May 12th, the China Automobile Dealers Association released the results of its April 2026 "Automobile Dealer Inventory" survey. The comprehensive inventory coefficient for automobile dealers in April was 1.89, representing a month-on-month increase of 7.4% and a year-on-year increase of 34.0%. Based on statistics from the Passenger Car Association, which reported terminal sales of 1.384 million passenger vehicles in April, it is estimated that the total inventory held by China's automobile dealers at the end of April was approximately 2.6 million vehicles.
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