While new car sales in China are starting to pick up, the sales of second-hand vehicles are also showing signs of growth.
Used-vehicle sales from China's major second-hand auto markets were up 10 percent in February. Loans for second-hand car purchases have also resumed in some cities. And some banks have launched new programs to attract customers.
Zhang Xin, senior manager of Personal Loan Dept, Bank of Communication, "it will only take 1 or 2 days to go through the application evaluation. After that we can move to mortgage registration. People will get the money within 2 days."
Traditionally, the minimum down payment amount for second-hand auto loans is 50 percent. The value of the credit is between 40,000 to 400,000 yuan, while the loan's maturity does not last for more than 3 years.
Car buyers can also use their properties as collateral, with no down payment required. And the interest rate is also 10 percent less compared to before.
Besides the Bank of Communication and the Bank of Beijing, several other lenders including the Agricultural Bank of China and China Construction Bank are also in talks with guarantee and bonding firms to launch used-auto loan services.
But many consumers complain that they were not aware that such services existed in the market. And the banks' vetting system for loans is quite strict.
A potential car buyer says, "if there is a loan for second-hand auto buyers, of course I will apply for one."
A potential car buyer says, "I am still considering if I should apply for a loan for my second-hand car or not."
