On December 27th, the fierce price war of consumer loans for zero interest and zero down payment car purchases is spreading to the year-end car loan market. A reporter from China Securities Journal recently visited several traditional and new energy vehicle brand 4S stores in Beijing, and most salespeople gave priority to introducing loan car purchase plans to the reporter. They stated that compared to purchasing a car in full, the landing price of a loan car can be discounted by several thousand to tens of thousands of yuan. Not only that, “long-term loans and short-term repayments” (customers apply for 5-year loans, which can be repaid in advance after 1 or 2 years) have become a tactic for car salespeople to attract customers to take out loans to buy cars, but this move has left commission banks feeling helpless. A bank insider bluntly stated, “Dealers doing this will cause a significant decline in our loan income, and even losses.” Industry insiders said that price wars are not a long-term solution and we need to find the “second growth curve” of automotive finance. A person in charge of a certain joint-stock bank said, “We need to transform simple roll prices into roll services, roll products, roll processes, and roll customer experiences that focus on long-term development. If the bank cannot make profits, its subsequent service capabilities will inevitably be greatly reduced, especially the needs of long tail customers will be difficult to meet.” (China Securities Journal)
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