Is it true that customers have to settle the remaining payment of over 200,000 yuan before taking delivery of the car, or the 5,000-yuan deposit will be invalidated? A person familiar with Xiaomi Auto said that it involves two special cases; a lawyer offers an interpretation →
Recently, some prospective owners of Xiaomi cars have reported that they were required to pay the balance in advance within 7 days while their cars were still in the pre - production state. Otherwise, their orders would be cancelled and the deposits would not be refunded. According to an insider close to Xiaomi Auto, there are two situations where customers may be required to pay the balance in advance: when customers actively request a delay in production scheduling or when there is a high - risk assessment of their willingness to pick up the car.
“The Xiaomi (car) staff asked me to pay the balance within 7 days before the car even rolled off the production line. If I don't pay, the deposit will be forfeited directly.” Recently, a user claimed on a social platform that they were “required by Xiaomi Auto to pay the balance in advance” and posted corresponding screenshots, which attracted market attention. “The car is still in pre - production, and it shows that it will be delivered in 22 to 25 weeks. Suddenly, I received a notice from the delivery consultant today asking me to pay within 7 days. My requirement is to pay the balance after inspecting the car, but the salesperson said that if I don't pay, the order will be cancelled and the deposit will not be refunded.” A user of the Xiaomi SU7 said.
Image source: A social platform
A reporter from National Business Daily contacted a prospective owner of the Xiaomi SU7 Ultra, who received a message from a Xiaomi Auto salesperson on July 30 asking to pay the balance in advance and said he was very angry. “I was ‘shocked’,” the prospective owner told the reporter, adding that he had hired a lawyer to handle the matter.
Several Xiaomi Auto salespeople in Beijing told the reporter that the requirement to pay the balance in advance only applies to some prospective owners with special circumstances. “It only applies to users who have requested a delay in delivery or are assessed to have a high risk of not picking up the car - for example, those who showed low cooperation when handling financial installments or expressed the idea of not wanting to pick up the car.”
On August 9, Liao Jianxun, a senior partner and public - interest lawyer at Guangdong Guoding Law Firm, said in an interview with the reporter that consumers have the right to refuse to pay the balance when the car is still in the production scheduling stage. “Xiaomi Auto's sudden notice to settle the balance in advance may cause difficulties for consumers in capital turnover. Moreover, if they pay in advance, in case of delays in vehicle delivery or quality problems, consumers will be in a very passive position when safeguarding their rights,” Liao Jianxun said.
Some analysts pointed out that this may be a means for Xiaomi to clean up “scalpers” hoarding orders. Currently, the production scheduling cycle of the Xiaomi SU7 can be up to 41 weeks. Through the implementation of this measure, it is expected to improve the delivery efficiency of relevant Xiaomi Auto models.
Two situations where customers may be required to pay the balance in advance
It is reported that the main targets required to pay the balance in advance this time are prospective owners of the Xiaomi SU7 and SU7 Ultra. “We have indeed received some similar reports (about paying the balance in advance), but the specific situation needs to wait for further feedback from the delivery center,” the Xiaomi Auto customer service replied.
An insider close to Xiaomi Auto revealed to the reporter that Xiaomi Auto is mainly worried that prospective owners may not want the car after it is produced, which will affect the normal delivery to other customers who have placed orders.
For this reason, the reporter, posing as a prospective owner, asked Xiaomi Auto customer service staff why they were required to pay the balance in advance. The other party counter - questioned the reporter: “Did you apply for a delay in production scheduling for your order?” “Salespeople ask some owners to pay the balance in advance probably because they are worried that users may not want the car after it is transported to the local area. In this case, it will be very difficult to match it with the next order with the same configuration in some remote cities,” explained a salesperson at a Xiaomi Auto offline store in Beijing.
The above - mentioned insider close to Xiaomi Auto further explained to the reporter that under normal circumstances, Xiaomi Auto owners make the final payment when the car is produced and about to be delivered. However, there are two special situations where they may need to pay part of the money in advance. “The first is when customers actively request a delay in production scheduling. When the car is about to roll off the production line and the customer hopes to postpone the pick - up time, the customer may be required to pay a deposit of about 20,000 to 30,000 yuan. This money will be deposited into a supervision account, and the production plan of the car will be rearranged. If the customer finally gives up buying the car, the deposit can be refunded, but the down payment will not be refunded according to the rules. The second situation is related to the assessment of the customer's risk of not picking up the car. Only when there is a high possibility that the customer will not pick up the car will they be required to pay the balance or a down payment of 10,000 to 20,000 yuan in advance.”
The insider introduced that Xiaomi Auto's judgment is usually based on two observations: first, when the delivery party contacts the customer one month in advance to handle necessary procedures such as financial installments, the customer shows a non - cooperative attitude; second, the customer shows an intention of not wanting the car in the official communication group or other channels. These signs may prompt the delivery party to require advance payment to confirm the customer's true intention to buy the car.
The reporter verified these two situations described by the insider with several prospective owners, including the above - mentioned Xiaomi SU7 Ultra owner, who were required to pay the balance in advance, but as of the time of publication, no response was received.
The above - mentioned insider close to Xiaomi Auto told the reporter that Xiaomi Auto produces cars according to the configuration selected by users when they lock the order. If users go back on their word after the car rolls off the production line, it will have to be postponed to the next order with the same configuration, which will affect the normal pick - up cycle of other customers who have placed orders.
Lawyer: Paying the balance during the production scheduling stage deviates from normal trading habits
After this incident was exposed, it has raised questions from the outside world about Xiaomi Auto's requirement for prospective owners to pay the balance in advance. “Normally, when buying a car, customers first pay a deposit and then pay the balance when picking up the car,” said Dong Hao (a pseudonym), a car dealer, in an interview with National Business Daily. Generally speaking, the balance is paid at the earliest when the car is in the pre - delivery state. Dong Hao said that settling the balance in advance will put users in a passive position if there are problems with the car later. “Users usually settle the balance when picking up the car, and then get the invoice and license plate,” Dong Hao said. He said it was the first time he had seen a car company require owners to pay the balance in advance when the car was still in the production scheduling stage.
A Tesla Model 3 owner who had just successfully picked up his car introduced to the reporter that he paid the balance after confirming the pick - up time and had a professional inspect the car in advance. “I bought my car on loan. After paying the deposit, the salesperson added the staff of the loan bank to the group, and then the bank handled the pre - approval for the loan. One day before picking up the car, I paid the down payment for the car loan,” the owner said, adding that Tesla agreed to let him inspect the car before paying.
Liao Jianxun said that most car companies allow consumers to pay the balance after inspecting the car or when the car is delivered. Xiaomi Auto's requirement to pay the balance during the production scheduling stage obviously deviates from normal trading habits. “From the perspective of industry practice, Xiaomi Auto's purchase agreement changes the normal trading process and imposes more risks and responsibilities on consumers, which violates the principle of fairness,” Liao Jianxun said. He also said that consumers have the right to refuse to pay the balance when the car is still in the production scheduling stage.
Image source: Screenshot of an article published on the Xiaomi Auto WeChat official account on May 1, 2024
In fact, Xiaomi Auto once stated externally that “it supports paying the balance after inspecting the car.” On May 1, 2024, the article Answers to Netizens' Questions about Xiaomi SU7 (Episode 34) published on the Xiaomi Auto WeChat official account stated that “Xiaomi supports paying the balance after inspecting the car. However, it is recommended that users handle relevant procedures in advance to reduce the waiting time for picking up the car after arriving at the store. At the same time, users can rest assured that Xiaomi strictly controls the vehicle quality and provides qualified products to users.”
Is the purchase agreement suspected of having “overbearing clauses”?
“According to the purchase agreement, users need to settle the payment within the specified time. Only after settling the payment can they pick up the car. Otherwise, the order may be cancelled,” the Xiaomi Auto customer service said.
The reporter also found when checking the Xiaomi Auto purchase agreement that the section on “balance payment” states: “Within 7 natural days from the date you receive the notice of vehicle balance payment (hereinafter referred to as the payment notice), you need to pay all the remaining amount. Your failure to pay the balance in full on time or refusal to pay the balance constitutes a fundamental breach of contract. Xiaomi Auto has the right to cancel the order and terminate this agreement, and the deposit you have paid will not be refunded. This agreement will terminate from the date Xiaomi Auto notifies you to cancel the order, unless Xiaomi Auto agrees that you can continue to perform this agreement.”
Image source: Xiaomi Auto purchase agreement
Wu Yinzheng, a partner lawyer at Sichuan Jianfa Law Firm, told the reporter that the clause in the agreement that gives Xiaomi Auto the right to unilaterally notify the payment of the balance according to the situation is indeed suspected of being an “overbearing clause.” If it was clearly indicated when signing the subscription and prospective owners all agreed, the clause is binding. If there was no clear indication, it can be considered an “overbearing clause.” Consumers can report it to the Consumer Association or claim it in court during a subsequent rights - protection lawsuit.
Liao Jianxun also believes that the relevant clauses in the Xiaomi Auto purchase agreement regarding “balance payment” are suspected of being “overbearing clauses.” Xiaomi Auto's requirement for prospective owners to settle the balance in advance within 7 working days, otherwise cancel the order, is a standard clause in the purchase agreement. According to the Civil Code and the Consumer Rights and Interests Protection Law, standard clauses should follow the principle of fairness to determine the rights and obligations between the parties.
It is worth mentioning that Xiaomi Auto also states in the purchase agreement that “after the payment notice is sent, please complete the fund preparation or handle the financial loan in time. You shall bear the consequences and risks of delaying or refusing to pay due to reasons such as the vehicle not rolling off the production line, not being delivered, the vehicle rolling off the production line in advance, the financial loan not being handled or unable to be handled, being unable to apply for subsidies or tax incentives, or not having a license - plate quota.” In this regard, Liao Jianxun believes that “the clause in the contract stating that ‘after Xiaomi notifies the payment, even if the vehicle has not rolled off the production line, refusal to pay is a breach of contract’ unilaterally expands the rights of the car company, obviously increases the financial risks for consumers, and may be regarded as using standard clauses to exclude or limit consumers' rights, suspected of being an ‘overbearing clause’.”
In Liao Jianxun's view, the requirement to settle the balance in advance has a significant impact on consumers' capital arrangement and rights protection, and is a clause that has a major stake in consumers' interests. However, Xiaomi Auto did not use reasonable and prominent methods such as bolding, highlighting in red, pop - up reminders, separate explanations, or a secondary confirmation page to let consumers notice this clause. Consumers may not have fully realized the potential restrictions of this clause on their rights.
Wu Yinzheng suggests that prospective owners who have received the payment notice can negotiate with Xiaomi Auto and at least require a clear pick - up time and quality guarantee before paying the balance. If they forcibly refuse to pay the balance, there may be a risk of losing the deposit. At least for now, the purchase agreement seems to be more favorable to Xiaomi.
However, Liao Jianxun also believes that Xiaomi Auto has no right to deduct the deposit. “When the Xiaomi Auto purchase agreement is suspected of having ‘overbearing clauses’, there is no clear agreement on the balance payment time, and Xiaomi Auto's requirement does not conform to the normal trading process, consumers' refusal to pay the balance cannot be directly regarded as a breach of contract, and the responsibility cannot be attributed to consumers,” he said. He also said that if communication and negotiation with Xiaomi Auto do not yield satisfactory results, consumers can complain to relevant departments such as 12345 and the market supervision and management department. In addition, if Xiaomi Auto's actions lead to the cancellation of the order or a further delay in delivery time, consumers can also safeguard their legitimate rights through legal proceedings.
This article is from the WeChat official account “Top News of National Business Daily”. Author: Li Xing. Editors: Chen Keming, Yu Tingting, Du Hengfeng. Proofreader: Jin Mingyu. Republished by 36Kr with authorization.