Higher down payment for cars
10/3/2004 15:50
As of yesterday, local banks uniformly raised the amount of the down
payment required for car loans to 20 percent of the net car prices, with the
zero-down-payment system being withdrawn from the market, the Xinmin Evening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 on 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 mechanical engineering vehicles can get loans to a maximum of 70 percent for
no more than three years.
Loans for second-hand buyers will also have a
uniform regulations soon.
Higher thresholds for loans will also be required
for those purchasing cars in Shanghai with license plates outside the city, with
such buyers asked to offer their properties as security.
Local banks will
not extend loans to car purchasers until they handle registration procedures for
car mortgages.
Wendy Zhang/ Shanghai Daily news
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