Hyundai Motor Company recently launched a variable rate financing program for new cars on the 1st, aimed at expanding customer options amid significantly increased burdens of high interest rates.
The variable rate financing program determines the installment interest rate based on the fluctuation of the 91-day Certificate of Deposit (CD) interest rate, reviewed every three months. If interest rates decrease in the future, customers may see a reduction in their interest burden.
This program operates on a level repayment scheme, structured as a single product with a 60-month installment plan.
For example, if the 91-day CD rate is 1.0 percentage points lower three months after the loan confirmation point, the customer’s loan interest rate will also decrease by 1.0 percentage point compared to the loan confirmation rate.
The variable rate financing program is available for individual and sole proprietorship customers and applies to all Hyundai passenger vehicles (excluding the Casper) and mid-sized commercial vehicles (excluding the Pavis), as well as all Genesis models.
Additionally, to prevent increased interest burdens if rates rise, a mid-term termination repayment fee has been waived, minimizing customer losses.
In celebration of the launch of the variable rate financing program, Hyundai is holding an event until February 28, where 10 customers who use this program to purchase a new car will be randomly selected to win a state-of-the-art air purifier. Every customer who takes delivery will receive a coffee gift coupon.
A Hyundai representative stated, “By providing a variety of financial products tailored to customer needs, we have expanded options, and we hope that the variable rate financing program will alleviate the burden of car installment interest for customers if rates decrease in the future.”
Lee Sang-jin daedusj@autodiary.kr