The financial institution independently determines the maximum loan issuance ratio for personal use
The Central Bank and the China General Administration of Financial Supervision and Administration jointly issued the “Notice on Adjusting Policies Related to Auto Loans”, which makes it clear that financial institutions independently determine the maximum loan ratio for private use of traditional power vehicles and private new energy vehicles based on the borrower's credit status, repayment ability, etc. on the premise that they comply with the law and that risks are manageable.
Among them, it is pointed out that the maximum loan disbursement ratio for private use of traditional power vehicles and private use of new energy vehicles is determined independently by financial institutions; the maximum loan disbursement ratio for commercial traditional power vehicles is 70%, the maximum issuance ratio for commercial NEV loans is 75%; and the maximum disbursement rate for used car loans is 70%.
Automobile industry insiders are optimistic about the stimulatory effect of “0 down payment”. Some automobile industry insiders believe that the leading agency for “0 down payment” will be an auto finance company owned by an automaker. They will be more motivated to push for “zero down payment”, “apply for car loan installments, car prices can be lower”, and they will also be packaged with insurance, service fees, etc. Some analysts also point out that zero down payment is equivalent to driving away without paying. The threshold is low and the risk is high. It is generally believed that those with a low down payment often have poor ability to pay; late monthly payments can easily cause problems, and zero down payment means that the merchant has taken all the risk.
Huaxi Securities pointed out that the car market has entered a peak replacement period. It is expected that the number of new and replacement purchases will increase by 1.22 million units in 2024, which will deeply benefit mid-range and high-end models. Furthermore, with the increase in the supply of new energy models and the decline in battery costs, autonomous vehicle companies such as Great Wall, Geely, and Changan are expected to see a sharp increase in new energy sales, accelerating their share of joint ventures.
Automotive finance-related concept companies:
Yixin Group (02858): As an auto finance trading platform, Yixin released the 2023 annual performance report, showing that Yixin's revenue was 6.686 billion yuan, up 29% year on year; adjusted net profit was 910 million yuan, up 32% year on year. Yi Xin achieved a total of 678,000 financing transactions in 2023, an increase of 22% over the previous year; the volume of financing transactions reached 65.9 billion yuan, an increase of 24% over the previous year. Among them, Yi Xin's new car financing transaction volume was 399,000, an increase of 51% over the same period in 2022, an increase of 51% over the previous year, and the corresponding financing amount reached 40.2 billion yuan, an increase of 57% over the previous year.