A total of 237 small and mid-sized rental car companies have applied to Hyundai Capital's installment payment deferral program, or one in three eligible firms, a participation rate more than double that of a similar program run during the COVID-19 pandemic.
Hyundai Capital took applications from about 700 small and mid-sized rental car companies that use its auto financing, and 33.9% signed up, according to financial industry sources on the 20th. The take-up rate for its deferral program during the pandemic was 15%.
Hyundai Capital announced the deferral measures on Sept. 14 and began accepting applications, aiming to ease the financing burden on smaller rental car operators. The program defers repayment of auto installment principal for six months and waives half of the interest accrued during that period. The company is now processing follow-up procedures for the applicants, with benefits to be applied in stages from Nov. 1 according to each company's payment date.
The lender has also begun discussions on allocating replacement-vehicle business from accident repairs to smaller rental car firms. Hyundai Capital held its first joint committee meeting with the Korea Rent-A-Car Business Cooperatives Federation and the National Rent-A-Car Federation on the 15th at its headquarters in Jung-gu, Seoul. At the meeting, the company shared the volume of accident replacement vehicles handled through its long-term rental business and the related work procedures, and heard the views of the two federations.
"We are making various efforts to come up with measures that provide real help to small and mid-sized rental car companies," a Hyundai Capital official said. "We plan to continue consultations with the two federations representing the domestic rental car industry for mutual prosperity and shared growth."