Higher down payment needed from car buyers

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Last updated at: (Beijing Time) Thursday, March 11, 2004

Higher down payment needed from car buyers

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As of yesterday, local banks uniformly raise the proportion of initial payments required for car loans to 20 percent of the net car prices, with the zero-down-payment system withdrawing from the market, the Xinmin Evening News reported yesterday.

The down payment was previously calculated on the basis of the total costs in buying cars, including car prices, license plate charges, premiums and purchase taxes, while currently, it is calculated in the light of the net car prices.

As of yesterday, local car buyers are able to get loans of no more than 80 percent of the net car prices for up to five years when purchasing normal five-person sedans; those purchasing seven-plus-seat business and engineering mechanic vehicles can get loans at a maximum proportion of 70 percent for no more than three years.

Extending loans to second-car buyers will have a uniform regulation soon.

Higher threshold will be required for those purchasing cars in Shanghai while license plates outside the city to get loans, with such buyers asked to offer their properties as guaranty.

Local banks will not extend loans to car purchasers until they handle registration procedures for car mortgages.

Source:Xinhua

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