The interest rates for financing offered by capital companies and import car dealerships have reversed.
According to the Korea Credit Finance Association, the financing rates for major financial companies that handle leasing or installment payments for import cars have surpassed 10%. The rates are 12.53% for Shinhan Card, 11.60% for Woori Card, 10.37% for KB Capital, and 12.2% for Hana Capital.
In contrast, the financing rates for products operated by import car dealers are significantly lower. This marks a reversal from the past when capital rates were lower.
Mercedes-Benz Finance is offering a maximum interest rate of 9.68% for customers purchasing Benz vehicles. This is nearly 3% lower than typical capital companies. For select models such as the A-Class, CLA, GLA, GLB, E-Class, and some GLE models, the rate can be lowered to as low as 5.28% if a 30% down payment is made. A special financing promotion for the E-Class is underway, applying installment rates in the 6% range.
With the current high-interest climate, the previously overlooked proprietary finance products from import brands have become relatively cheaper. This phenomenon can be seen as a type of interest rate reversal.
Volkswagen has taken a bold step by introducing 0% interest or zero-interest installments. Volkswagen Finance is now offering a zero-interest rate for customers purchasing the Tiguan 2.0 TDI, priced at approximately 43.9 million won, for 36 months. By making just a 30% down payment, the remaining 36 months will apply zero-interest installments. While the maximum rate disclosed by Volkswagen Finance is 10.97%, the Tiguan is being sold interest-free.
As interest rates reverse, consumers are expected to quickly shift to import car financing options.
Contact: Lee Sang-jin daedusj@autodiary.kr