Hyundai Capital’s specialized services attract young drivers
Before the pandemic broke out, there had been a tendency among the younger generation to use car-sharing or lending services rather than actually buying vehicles. According to the Korea Automobile Manufacturers Association, the number of automobile buyers in their 20s and 30s shrank 7.9 percent and 10.4 percent respectively in 2019, compared to the previous year. In 2020, however, both age groups have seen increases of over 10 percent.
As a result, the younger generation, who values emotional satisfaction when shopping, fast became important customers.
In keeping with the trend, Hyundai Capital launched specialized financial products and services such as the Start Plan and N-Finance, the company said.
Hyundai Capital launched the “Start Plan” in collaboration with Kia in September last year, targeting drivers between 20 and 39 years of age. The program offers extended grace periods for monthly installment payment and a one-year gas discount service for those who buy Kia’s K3, K5, Ray, Seltos, Stinger, among others.
Hyundai Capital’s “N-Finance” is another product designed in line with millennials and Gen Z’s preferences in mind. Those who plan to buy Hyundai N model cars are eligible for the service.
Launched in July, “N-Finance” provides extended grace periods for monthly installments, for up to 80 percent of the original principal. It is also free of early termination fees, and guarantees up to 64 percent of the original price of the previous model if the driver wishes to buy another Hyundai vehicle during the term of contract.
Hyundai N, the high-performance brand of Hyundai, is especially popular among the younger generation, with millennials and Gen Z accounting for 71 percent of sales.
Among the Hyundai N owners in their 20s and 30s, 76 percent prefer longer installment periods and low initial costs, and 97 percent wash their cars by themselves, according to Hyundai Capital.
“The younger generation tends to prioritize self-expression and personal preferences and are more prone to emotional attachment to their cars,” an official at Hyundai Capital explained.
“Though the older generation might have more purchasing power than the younger generation, emotional satisfaction will continue to motivate young drivers to own cars.”
By Shin Ha-nee shin.hanee@joongang.co.kr
with the Korea JoongAng Daily
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