BYD Wants To Sell EVs Zero Down Payment
The idea of selling an expensive product with zero down payment is alluring to companies trying to make a dent in a new market but is also a very dangerous business practice. BYD wants to sell its electric vehicles, the e6 or k9 for no money down. The company has announced a series of financial incentives for customers, according to the China Business News website.
Selling For Nothing. The BYD electric vehicles have appealed to taxi operators and bus companies for their inherently cheaper energy cost. BYD wants to give such companies the opportunity to buy their all-electric e6 or k9 on credit with zero down payment. The program is being offered through the China Development Bank and the China Everbright Bank.
So what is the hoopla? With a high purchasing price, buying an electric car even for fleet operators can be a major hindrance. In China, the E6 costs 180,000 yuan, about $28,811 even after government subsidies. Even though the company claims buying either e6 or k9 is more cost-effective than buying a similar gasoline car in the long run, it’s still a lot of money to put up front for future savings. The company further its argument that the Shenzhen all-electric taxi company saves 326,000 yuan, roughly $52,181 in five years by operating those electric cars. These numbers are compared to the cost of running a similar gasoline car.