China Banking and Insurance Regulatory Commission: Encouraging appropriate reduction of down payment ratio for car loans, and reasonably determining the term of car loans

The China Banking and Insurance Regulatory Commission issued a notice on promoting non-bank financial institutions to support large-scale equipment upgrades and the trade-in of consumer goods. The notice proposes to increase automotive financial services to support trade-ins for new cars. It encourages automotive financial companies and financial companies engaged in automotive financial business to increase financing support for municipal transportation enterprises, help promote the application of new energy vehicles, facilitate the electrification of urban buses, and the replacement of old new energy buses and power battery upgrades. Within the legal and compliant framework with controllable risks, it encourages appropriately reducing the down payment ratio for car loans, determining reasonable loan terms and credit limits, and lowering the threshold for car consumption. It encourages diversifying the supply of automotive financial products, providing financial services such as replacement car continuation loans to consumers in the vehicle replacement process, appropriately reducing early repayment penalties, and supporting trade-ins for new cars. It also encourages strengthening cooperation with automobile manufacturers, seeking interest subsidy support, and enhancing consumer satisfaction. Encouraging incremental consumption and upgrading consumption, while increasing financial support for the second-hand car market on the basis of controllable risks, to promote automotive consumption through an active second-hand car market