Seven-year low-interest auto loan programs are being tightened, with several automakers temporarily extending related financial policies until the end of April.
At the beginning of 2026, the auto market witnessed a surge in promotions featuring ultra-long-term, low-interest car loans. Recently, it has been exclusively learned that these extended-term loan programs are now being restricted. Multiple automakers have confirmed that relevant policies will remain in effect until April 30, 2026, with no decision yet made on potential extensions beyond that date.
"Seven-year auto loans have been halted by some banks, and there are recent rumors that leasing companies are also being required to stop offering them," revealed an auto finance professional from a joint-stock bank.
A salesperson from Xiaomi's automotive division showed an internal notice stating that, following policy adjustments from banking partners, 6 to 7-year loan products may cease to be accepted at any time—an industry-wide issue—with the latest possible acceptance date being April 30.
Another bank official responsible for a specific new-energy vehicle manufacturer mentioned, "Our bank previously offered the 7-year low-interest product for a period but later suspended it. Other banks are still providing it. There are now indications that the 7-year low-interest products will be halted, though the exact timing remains unclear."
Since the start of 2026, automakers initiated a wave of "7-year low-interest" promotions. Companies such as Tesla, Xiaomi, XPeng, Li Auto, Geely Galaxy, and Voyah have successively launched financial plans featuring 7-year low-interest loans. These plans break from the conventional 1 to 5-year term for new car loans, emphasizing low monthly payments and low down payments as core selling points. While Tesla explicitly collaborates with China CITIC Bank and Shanghai Pudong Development Bank, many other automakers work primarily with manufacturer-affiliated financial arms or leasing companies.
Earlier, a seasoned auto finance expert had indicated that due to significant risks and stringent approval standards, some regions did not approve banks to offer "7-year low-interest" loans initially.
Today, inquiries with sales staff from multiple automakers and checks of official websites reveal that the "seven-year low-interest" policies from several car manufacturers are set to expire on or before April 30, 2026. Whether these policies will be renewed afterward remains undecided.
According to the internal notice shared by the Xiaomi salesperson, instructions were given to "focus on inviting new customers to complete purchases this month, as the 7-year plan will not be available later, making conversions more challenging due to higher monthly payments. Existing customers interested in the 7-year option should also submit bank approvals promptly to lock in loan amounts and the 7-year plan."
A Tesla salesperson stated that while they had not received internal notification, Tesla's "7-year low-interest loan plan" is indeed valid until April 30, 2026, with uncertainty regarding its continuation. Tesla's plan is offered through its partner financial institutions, China CITIC Bank and Shanghai Pudong Development Bank.
A review of Tesla's official website shows that its "Limited-Time Low-Interest Plan A/B" explicitly notes that customers purchasing specified versions of Model Y and Model Y L before April 30, 2026, who meet eligibility criteria, can apply for the special financial offer. However, it was also noted that the expiration date for other Tesla financial plans is similarly set for April 30, 2026. The salesperson described this as part of Tesla's regular adjustments.
Li Auto, which also promoted a "seven-year low-interest" purchase plan, has its sales staff indicating that the policy is currently pending, with no definite cutoff date confirmed. Collaboration with Yixin Financial is still possible, but Yixin's status is also under review, making next month's situation uncertain. Li Auto's plan is provided by Yixin Financial, primarily operating under a financial leasing model.
Additionally, XPeng's official website displays a "Limited-Time 6-7 Year Low-Interest Plan" with an annual fee rate of 1.67%, a minimum down payment of 15%, offered by XPeng Financial Leasing, valid from April 2, 2026, to April 30, 2026. A XPeng salesperson mentioned no specific notification had been received about the plan ending in April, noting that policies change monthly.
The trend towards longer-term, low-down-payment auto loans has increased risk control pressures on financial institutions, demanding enhanced capabilities in risk assessment and pricing.
For banks, extending the term of consumer loan products necessitates longer risk management cycles. Lower down payments require banks to evaluate not just short-term repayment capacity but also long-term solvency.
Key challenges include the lack of long-term personal credit data models and increased difficulties in assessing and disposing of collateral residual value later in the loan term, as previously explained by a Fitch Ratings director.
For consumers, longer loan terms and greater repayment uncertainty have led financial institutions to raise eligibility thresholds.
It is noteworthy that among publicly advertised "7-year low-interest" schemes, Tesla partners directly with banks, while others often use manufacturer finance companies or leasing firms. Compared to commercial banks, leasing companies typically have more flexible customer eligibility criteria, though some have tightened requirements for these long-term plans.
However, the "financing lease" model used by some companies remains controversial regarding vehicle ownership and transfer rules. Staff from Yixin Financial clarified that their product is a sale-leaseback arrangement where the vehicle is registered under the customer's name, with a lien held by the company until the loan is repaid. They emphasized that this differs from traditional car rental, where the vehicle must be returned.
Legal experts advise consumers to clearly distinguish between "loan contracts," "sales contracts," and "financial leasing contracts," as they significantly differ in terms of ownership and transfer conditions. Consumers are urged to understand all associated costs, carefully review contract terms—especially regarding ownership, penalties, and fees—and raise questions about unclear clauses to avoid potential losses.
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