Hyundai Capital "Hyundai·Kia Vehicles Available for Installment with Variable Interest Rates"

No Prepayment Penalty Fees Either

[Asia Economy Reporter Minwoo Lee] Hyundai Motor Company (excluding large commercial vehicles, PAVIS, Casper), Genesis, and Kia vehicles can now be purchased through installment plans with variable interest rates.

Hyundai Capital announced on the 6th that it has newly launched this 'variable interest rate new car installment' product.

In the existing auto finance market, most installment products maintained a fixed interest rate from the time of purchase until maturity. The interest rate for the newly launched Hyundai Capital variable interest rate new car installment is determined by adding a spread reflecting the financial company's cost to the simple average of the CD rate (91-day, based on the 26th of the month before last to the 25th of the previous month) announced by the Korea Financial Investment Association.

The interest rate adjustment cycle is every 3 months. For example, if the initial 3 installment interest payments are made at a 7.3% rate and the 3-month installment interest rate is calculated at 6.5%, then the 4th to 6th installments will be paid at the 6.5% rate.

Additionally, if the interest rate rises and the interest burden increases, early repayment is possible at any time during the payment period without any separate prepayment penalty.

There is also a way to lower the interest rate. This product consists of the 'Mobility Installment Type (Hyundai Motor)/M Installment Type (Kia)' and the general 'Variable Interest Rate Type' products. The 'Mobility Installment Type/M Installment Type' offers a lower interest rate benefit compared to the general 'Variable Interest Rate Type' if a down payment of 10% or more of the vehicle price is made using a Hyundai Motor exclusive card (excluding Kia) or Hyundai Card M series card.

Meanwhile, this variable interest rate new car installment product is only available as a single 60-month installment product. It uses the equal principal and interest repayment method, where a fixed monthly payment amount is repaid. For more details, please refer to the Hyundai Capital application (app) or website.

A Hyundai Capital official said, "We launched the variable interest rate new car installment product to allow customers to utilize various auto finance products according to their situations," adding, "Customers who hesitate to purchase vehicles due to sudden product interest rate fluctuations will find this product more useful."