Agreement Ceremony Held at Hyundai Motor Company's Jeju Regional Headquarters on the 28th
Hyundai Motor Company announced on the 29th that it had signed a support agreement with Hyundai Capital and the Jeju Special Self-Governing Province Rent-a-Car Association on the 28th to strengthen the competitiveness of the rental car industry in Jeju.
The signing ceremony, held at Hyundai Motor Company's Jeju Regional Headquarters, was attended by Seungchan Kim, Head of Domestic Sales at Hyundai Motor Company; Jangsoo Shim, Head of Auto Division at Hyundai Capital; and Donghoon Kang, Chairman of the Jeju Special Self-Governing Province Rent-a-Car Association.
Through this agreement, Hyundai Motor Company will offer rental car-specific residual value guarantee financial products, developed in collaboration with Hyundai Capital, to rental car companies in the Jeju region. This initiative aims to substantially ease the burden of new car purchases and operations for rental car companies, and to vitalize the Jeju rental car market.
(Photo from left) Seungchan Kim, Executive Vice President of Hyundai Motor Company; Donghoon Kang, Chairman of Jeju Special Self-Governing Province Rent-a-Car Association; Jangsoo Shim, Executive Vice President of Hyundai Capital, posing for a commemorative photo after signing the agreement. Provided by Hyundai Motor Company
This financial product targets companies affiliated with the Jeju Special Self-Governing Province Rent-a-Car Association. In connection with its certified used car business, Hyundai Motor Company will guarantee up to 65% of the new car purchase price as the used car value at the time of sale, provided certain criteria are met.
In particular, Hyundai Motor Company has set the annual mileage limit for rental cars at an industry-leading 35,000 kilometers, thereby increasing operational flexibility for rental car companies.
Regarding installment interest rates, Hyundai Motor Company, together with Hyundai Capital, has decided to reduce rates by 0.2 to 0.4 percentage points for 24, 36, and 48-month terms compared to previous rates, thereby lowering the financial burden of new car purchases for rental car companies. As a result, rental car companies are expected to improve operational efficiency and secure profits earlier.
In addition, Hyundai Motor Company will provide various options for settling the remaining installment balance at the end of the contract, including vehicle return, lump-sum payment of the deferred amount, or loan extension.
Hyundai Capital plans to actively support the revitalization of the rental car business in Jeju by raising loan limits and improving screening policies to lower the barriers to vehicle purchases for rental car companies, reflecting the unique characteristics of the Jeju rental car market.
A representative from Hyundai Motor Company stated, "This will be a great opportunity for travelers visiting Jeju to experience the latest vehicles without financial burden. By providing a comfortable and enjoyable travel experience, we also aim to help strengthen the competitiveness of the Jeju rental car industry."
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