Mar 25 2024: China’s National Financial Regulatory Administration (NFRA) has confirmed that it will soon implement a policy aimed at reducing down payments on loans for passenger vehicles. The NFRA mentioned that it has been holding meetings with commercial banks and auto finance firms in recent years to strengthen oversight of car credit.
According to the NFRA’s response to a Reuters report, the policy to lower car loan down payments has reached an advanced stage and will be officially announced in the near future. Currently, there are minimum down payment requirements of 15% for New Energy Vehicles (NEVs), 20% for internal combustion vehicles, and 30% for used cars.
The upcoming policy is expected to lower the financial burden of purchasing cars and contribute to a potential increase in auto sales, as indicated by the regulator.
