--- title: "Tesla removes 7-year financing in China amid tightening lending rules" type: "News" locale: "en" url: "https://longbridge.com/en/news/284611763.md" description: "Tesla has removed its seven-year low-interest loan option in China due to tightening lending rules. The new financing program offers a five-year, zero-interest plan for the Model 3 and Model Y, requiring higher upfront payments. This change comes as financial institutions increase scrutiny on long-term auto loans, raising concerns about borrowers' creditworthiness and vehicle residual values. Other automakers are expected to follow Tesla's lead in discontinuing similar long-term financing options." datetime: "2026-04-29T16:16:17.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284611763.md) - [en](https://longbridge.com/en/news/284611763.md) - [zh-HK](https://longbridge.com/zh-HK/news/284611763.md) --- # Tesla removes 7-year financing in China amid tightening lending rules Tesla is dialing back its financing strategy in China, removing one of its most aggressive purchase incentives as pressure mounts from lenders wary of long-term auto loans. According to new details about the automaker’s latest promotional campaign published on _Weibo_, Tesla has removed its seven-year low-interest loan option. The updated incentive program, which applies to orders placed before May 31, 2026, now offers a five-year, zero-interest financing plan for the Model 3, Model Y, and Model Y L. With the five-year plan, buyers can still access relatively low monthly payments, but only with higher upfront commitments and shorter repayment timelines than before. While the long-term financing option is no longer available, the company is also offering lower-interest financing options for buyers looking for more flexibility, ranging from one to five years, with down payments as low as 45,900 yuan (C$9,200/US$6,700). While these long-term financing plans are familiar for Canadians, they haven’t been around for long in China. In January, Tesla became the first automaker in the country to introduce a seven-year loan option, a move designed to reduce monthly payments and stimulate demand during a typically slower sales period. That strategy quickly spread across the industry, with competitors like Xiaomi, BYD, NIO, and others rolling out similar long-term financing offers, with some even pushing zero-down-payment options. However, the financing battle appears to be cooling off. Recent reports indicate that financial institutions in China are tightening oversight on ultra-long-term auto loans, citing rising risks tied to extended repayment periods. Banks and leasing firms are said to be concerned about the difficulty of accurately assessing borrowers’ long-term creditworthiness, as well as the challenges of managing vehicle residual values over extended timeframes. _(via CNEvPost)_ As a result, Tesla is not expected to be the only one to remove their 7-year plans, and other automakers are expected to follow suit, with some lenders already halting approvals. ### Related Stocks - [TSL.US](https://longbridge.com/en/quote/TSL.US.md) - [TESL.US](https://longbridge.com/en/quote/TESL.US.md) - [TSLG.US](https://longbridge.com/en/quote/TSLG.US.md) - [TSLL.US](https://longbridge.com/en/quote/TSLL.US.md) - [TSLR.US](https://longbridge.com/en/quote/TSLR.US.md) - [TSLT.US](https://longbridge.com/en/quote/TSLT.US.md) - [TSLA.US](https://longbridge.com/en/quote/TSLA.US.md) - [01810.HK](https://longbridge.com/en/quote/01810.HK.md) - [002594.CN](https://longbridge.com/en/quote/002594.CN.md) - [01211.HK](https://longbridge.com/en/quote/01211.HK.md) - [NIO.US](https://longbridge.com/en/quote/NIO.US.md) - [09866.HK](https://longbridge.com/en/quote/09866.HK.md) - [NIO.SG](https://longbridge.com/en/quote/NIO.SG.md) - [XIACY.US](https://longbridge.com/en/quote/XIACY.US.md) - [81810.HK](https://longbridge.com/en/quote/81810.HK.md) - [HXXD.SG](https://longbridge.com/en/quote/HXXD.SG.md) - [HYDD.SG](https://longbridge.com/en/quote/HYDD.SG.md) - [BYDDY.US](https://longbridge.com/en/quote/BYDDY.US.md) - [BYDDF.US](https://longbridge.com/en/quote/BYDDF.US.md) - [81211.HK](https://longbridge.com/en/quote/81211.HK.md) ## Related News & Research - [Tesla Opens First Superchargers in Colombia](https://longbridge.com/en/news/287794977.md) - [Volvo EV drivers in Europe gain an easier way into Tesla’s Supercharger network](https://longbridge.com/en/news/287661623.md) - [Fannie Mae Announces Sale of Reperforming Loans | FNMA Stock News](https://longbridge.com/en/news/287932968.md) - [Move over, Tesla. Another robo-taxi stock is making progress.](https://longbridge.com/en/news/287626314.md) - [SPECIAL REPORT-Why Tesla’s AI trainers don’t trust its self-driving tech - or its safety stats](https://longbridge.com/en/news/287895920.md)