Xiaomi 7-Year Low-Interest Financing: Bank Loan vs Financial Leasing — Key Differences Explained

Both are providers for the 7‑year low‑interest financing plan. Is there any difference between financial leasing companies and banks?

The 7‑year low‑interest financing plan is provided by official Xiaomi cooperative institutions such as Shanghai Pudong Development Bank. Among them, Shanghai Pudong Development Bank, China CITIC Bank and Bank of Ningbo offer loan products, while Shanghai Xiaomi Financial Leasing Co., Ltd. provides financial leasing (sale‑and‑leaseback) services. This is not traditional car rental; the vehicle registration certificate (commonly known as the “green title”) and driver’s license will both be registered under the customer’s name.

Notably, building a diversified financial service system by partnering with banks, auto finance companies, financial leasing companies and other institutions is a common practice among most automakers. Its purpose is to enable more customers to enjoy a car purchase financing plan that best suits them.

Financial leasing is a legally recognized financing method, governed by a financial leasing contract. For this reason, monthly payments are referred to as “rentals”, yet the vehicle is registered directly under the customer’s name and does not affect daily usage. It only differs from bank loans in business model.

Whether you choose financial leasing or a bank loan, under the same plan the customer’s financing cost is identical. Both are legally compliant financing solutions with no impact on actual vehicle use, and neither is inherently superior or inferior.

Online claims that the financial leasing model involves illegal risks or misleading practices are not true.

Regardless of the financing method chosen, Xiaomi Auto Financial Services maintains fully transparent costs and clear contract terms throughout the process. Early repayment is available at any time, with no penalty fee after one year of repayment. Please feel assured when applying.