Hyundai Capital has launched a grace period program to alleviate the financial burden on small rental car companies, with one in three eligible firms participating.
On October 20, Hyundai Capital announced that a total of 237 small rental car companies applied for its grace period program, resulting in a participation rate of 33.9%.
The program allows over 700 small rental car companies using Hyundai Capital to defer principal payments on auto loans for six months and offers a 50% reduction on interest accrued during this period. This participation rate is more than double the 15% application rate seen during the COVID-19 relief program.
Hyundai Capital is currently processing applications from participating companies. The grace period benefits will be implemented sequentially starting November 1, based on each company's payment date.
Hyundai Capital is also expanding its collaboration with the small rental car industry. On October 15, it held a meeting at its headquarters in Jung-gu, Seoul, with representatives from the Korea Rental Car Business Association and the National Rental Car Association.
During the meeting, they discussed allocating Hyundai Capital's long-term rental car accident replacement vehicles to small rental car companies. Hyundai Capital explained the volume of accident replacement vehicles and operational procedures while gathering feedback from the industry.
A Hyundai Capital representative stated, "We are working to establish measures that provide practical assistance to small rental car companies and plan to continue discussions for mutual growth with the two associations representing the domestic rental car industry."
* This article has been translated by AI.
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