Although oil prices maybe as low as $88USD at the moment, gasoline prices in Beijing seem to be going up. A litre of 93# will now cost 6.37rmb (from 6.20rmb) and 97# will now cost 6.78rmb (from 6.60rmb)
Reasons for the price increase seem to be blamed on the number of foreign/chinese joint venture gasoline stations in the Beijing area, although the real reason is likely to be that Beijing’ers actually enjoyed their cleaner air over the Olympic period when car use was limited. The limits are set to come back, but increasing the price of oil at the pump is more than likely to persuede even more people to leave their cars at home and use public transport instead.
One Beijing taxi driver was interviewed by a auto.sina.com.cn journalist, and commented that his fuel bill for each month is expected to rise by 100rmb, giving him a total fuel bill of around 5000rmb.
The price rises may not be much, but its no doubt set to effect the auto industry in Beijing.
that is about 3.50 a gallon, which is about what we pay in the US right now. True parity. I wonder how much it going to cost to maintain those highways in China.
Ash, can you talk a bit about car purchases in china are generally financed?
I was in daqing at the weekend, gasoline was 5.88rmb a litre.
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Car financing, Ill do something about that ASAP.
Most car puchases are paid in cash. Financing is usually available, but requires a 30-40% down payment and an income and credit check. Also, interest rates are fairly high (10%+). I don’t know of anyone here who has financed their car purchase. That said, one luxury brand was recently offering 0% financing.
Leasing is rare, but also not unheard of.
The income check is a joke - you ask your boss to write a letter stating your salary, or a form is offered by the bank, then it gets stamped with the ‘official company stamp’, then you’re free to get your car.
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30% downpayments are if you have assets in the local area that can be seized if you dont pay your car loan, or 40% if you dont have assets.
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Gerald is right though, most car payments are done in cash.
Ash,
Maybe it was lost in the translation (*if you write your blog in chinese?) Anyway, here in the states they call it repossession not seizure. But then again after the US government takes over the banks here maybe it will then be seizure. Funny how some countries are going to a free market system and we’re going the other way.
By the way are you going to blog on the possible Chrysler-GM merger that’s rumored I would expect such a deal would not only impact the US but China a little bit as well. Till next time, my brothers in the great struggle, “Comrade Jim”