Xiaomi YU7’s Myth Shattered? The Real Reason Behind the Shocking “Pay in Full NOW” Demand After 289k Pre-orders

The Paradox of 289,000 Pre-Orders: The Real Reason for Xiaomi YU7’s “Pay in Full Now” Demand

“289,000 pre-orders in one hour.” The debut of Xiaomi’s second EV and first SUV, the YU7, was nothing short of shocking. This record, easily surpassing the success of its first model, the SU7, seemed to cement Xiaomi’s status as a new dominant force in the automotive market.

However, the glossy veneer of this myth is beginning to crack faster than anticipated. What began as cheers of triumph have morphed into cries of frustration from consumers, fueled by “up to 60-week delivery waits,” a rigid “non-refundable deposit” policy, and now, an almost bizarre demand that is unprecedented in the 140-year history of the auto industry: a request for the final balance to be paid in full before the car is even delivered.

On the surface, this might look like the growing pains of a wildly popular product. But the real story is that at the heart of this chaos lies the massive shadow of “Yellow Cows” (黄牛, scalpers) and Xiaomi’s calculated, desperate strategy to deal with the dilemma they’ve created. This is not a mere hiccup; it’s the first great test of the Xiaomi success story.

The First Crack: “Wait 60 Weeks, But Your Deposit is Non-Refundable”

The root of all controversy began with the explosive popularity of the YU7. Throngs of consumers paid the RMB 5,000 (approx. $700) deposit to secure their orders, but what they faced was a waiting time that defied imagination.

Only after their deposits were locked in did buyers learn they would have to wait 30, 40, or even 60 weeks—well over a year—for their vehicle. For many, this pushed their delivery into 2026, meaning they would be subject to a New Energy Vehicle (NEV) purchase tax that is currently waived for 2025 deliveries. Naturally, consumers demanded cancellations and refunds, but Xiaomi held firm to its policy: “Once an order is locked in, the deposit is non-refundable.”

This has even sparked potential legal challenges. According to legal experts in China, this practice may infringe upon consumers’ “right to be informed.” Because the specific, lengthy delivery time was not disclosed at the time of the binding deposit, it is argued that consumers should be given a second chance to confirm or cancel their order after being notified of the actual wait.

The Second Shock: “The Car is Later, The Payment is Now”

“Hello sir, we’re calling to request the final balance payment for your YU7.”

Customers who were still months, or even a year, away from their delivery date began receiving these calls. This is a move that completely upends a century-old industry standard. From Rolls-Royce to Toyota, the universal practice is to pay the final balance upon inspecting and taking delivery of the vehicle. Not even a financially struggling Nio in its darkest days resorted to such measures.

Why would the “Cash King of Beijing,” CEO Lei Jun, appear to be scrambling for a few thousand dollars from each customer? The answer lies not in Xiaomi’s finances, but in the market’s invisible hand: the scalpers.

The Truth Behind the Curtain: The Scalpers’ Betrayal and Xiaomi’s Poison Pill

The real reason for the baffling “pay-in-full” demand is the “Yellow Cows”—the scalpers. A significant portion of the initial YU7 orders were placed not by genuine consumers, but by scalpers hoping to flip the highly anticipated SUV for a quick profit.

However, the market dynamics shifted against them. The resale value of newly launched EVs, as seen with the significant price drop of the Xiaomi SU7 Ultra in the used-car market, made it clear that flipping cars for profit was no longer a viable strategy.

The scalpers did the math: taking delivery of a YU7 and losing tens of thousands of RMB on the resale market was a far worse outcome than simply forfeiting the RMB 5,000 deposit. And so, they began to retreat.

This is where Xiaomi’s dilemma began.

• Option A (Accept Scalper Cancellations): If they let the scalpers back out, what happens to the now-available production slots? Offering them to customers further down the line would create an uproar about “line-cutting” and unfairness among those who had been waiting patiently.
• Option B (Allow All Refunds): If they open the floodgates and allow everyone to get a refund, the “289,000 orders in one hour” myth would instantly evaporate, severely damaging brand image and investor confidence.

Trapped, Xiaomi chose a third, aggressive path. The demand for early final payment is a poison pill strategy designed to force the scalpers’ hands. By requiring the full balance, they make it impossible for scalpers to cut their losses by just abandoning their small deposit.

Conclusion: The Four Gates for the True ‘Mi Fan’

This entire chaotic episode may be a filtering process, stripping away the hype and leaving only the true fans. CEO Lei Jun himself has indirectly acknowledged the difficulties, asking for “more understanding and tolerance.”

For any consumer looking to buy a Xiaomi YU7 today, they must pass through four daunting gates, each a severe test of their loyalty to the brand.

Gate 1: The ‘Delay Penalty’ Called Purchase Tax

With a waiting period stretching up to 60 weeks, delivery in 2026 or even 2027 is a certainty. This means buyers will miss out on China’s NEV purchase tax exemption, which expires at the end of 2025. This translates to a direct, tangible financial loss of thousands of dollars—a ‘delay penalty’ that erodes the car’s value proposition. Is it worth paying extra tax just for the privilege of waiting?

Gate 2: From ‘Hot Flip’ to ‘Guaranteed Loss’

The initial frenzy was fueled by the dream of flipping the car for a profit. That dream is dead. The SU7 Ultra’s rapid depreciation in the secondary market is a clear warning. In China’s brutal EV price war, new cars lose value instantly. A buyer must now accept that the YU7 is a consumer good to be used and enjoyed, not an investment.

Gate 3: The ‘Opportunity Cost’ of Waiting

The Chinese auto market does not stand still. While a YU7 buyer waits for over a year, competitors like Huawei’s AITO, ZEEKR, and Nio’s sub-brands will launch multiple new models that could be better, cheaper, or more technologically advanced. Locking into the YU7 means forfeiting the opportunity to buy these future alternatives. Can a buyer’s faith in the YU7 withstand the temptation of a year’s worth of new-car launches?

Gate 4: The ‘Blind Faith’ Pre-Payment

This is the final, most challenging gate. The demand for the full balance before delivery shifts all the financial risk from the manufacturer to the consumer. It’s an unprecedented break from industry norms that essentially asks the buyer, “If you truly believe in our brand, send us all the money now, without seeing your product.” It is the ultimate test of faith.

Ultimately, the Xiaomi YU7 is no longer a casual purchase driven by hype. It has become an emblem of true fandom, reserved for the ‘Mi Fans’ who are willing to navigate these considerable challenges. Perhaps this is a necessary, if painful, growing pain—a correction to the speculative mania that has defined the early EV boom.