[wheelguy]

The insurance scheme, which costs 15 euros to 20 euros a month, allows new car buyers to delay monthly payments until they are rehired, Emilio Herrera, the chief operating officer for Kia Motors Europe, said on Thursday.

FRANKFURT: Korean carmaker Kia plans to offer insurance in Europe which protects clients from having to make monthly payments on a new vehicle if they lose their job, a scheme designed to entice reticent customers back into showrooms after the coronavirus shutdown.

The insurance scheme, which costs 15 euros to 20 euros a month, allows new car buyers to delay monthly payments until they are rehired, Emilio Herrera, chief operating officer for Kia Motors Europe, said on Thursday.

"We are in discussions over how to implement it in the majority of markets in Europe. We want it in place as soon as markets reopen in May," Herrera said.

Santander Consumer Finance provides the insurance for Kia customers in several European markets, including in Germany, Kia said.

Government stimulus measures will also be needed to revive the economy, Herrera said.

"We need to put in place scrappage plans like in 2009," Herrera said. Combined with measures like unemployment insurance these steps may become confident enough to purchase a car," Herrera said.

Potential stimulus plans should help cut carbon pollution, but also incentivise customers to buy all categories of car, not just electric and hybrid vehicles, he said.

"Electrified cars are much more expensive than combustion-engined vehicles," Herrera noted, adding that in times of a crisis, consumers tend to make conservative buying choices.

The crisis has already hit demand badly, with sales down more than 25% in the first quarter. April will be the worse, showing declines of around 70%, with demand expected to improve thereafter, Herrera said.

In Germany, where smaller car showrooms have been allowed to open for the past week, traffic is 50% below pre-crisis levels, Herrera said.

IMO, interesting solution to boost demand in these testing times.

Source

[Garth]

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[ts1506]

From the TBHP homepage description, it sounds like the insurance covers the payments for the months you are unemployed.

The actual article/post sounds like a deferred payment option, similar to what Indian banks/credit cards have been doing here.

Not sure which one's correct though.

[GTO]

Hyundai had pulled off a master-stroke campaign in 2008 during the USA recession. If you lost your job, they'd take your car back! Hyundai-Kia have always been champs of marketing + creating buzz. IIRC, Hyundai was the first to offer 10-year engine warranties in the 90s.

Source

Hyundai Motor America is taking aim at Americans' worries about job security: If you buy a new Hyundai and lose your job within a year, you can give it back.

"In this uncertain economy, we are looking for ways to reassure shoppers that Hyundai still represents the best value in the auto industry," said John Krafcik, president and chief executive of Hyundai Motor America, the U.S. arm of the South Korea-based automaker, in a company statement.

"If you find that you cannot make your payment because of a covered life changing event, we'll allow you to return your vehicle and walk away from your loan obligation - and in most cases we will cover most, if not all of the difference," the carmaker's Web site says.

[locusjag]

Originally Posted by GTO

Hyundai had pulled off a master-stroke campaign in 2008 during the USA recession. If you lost your job, they'd take your car back! Hyundai-Kia have always been champs of marketing + creating buzz. IIRC, Hyundai was the first to offer 10-year engine warranties in the 90s.

You're right - the job-loss thing was being marketed by Hyundai even during the 2010s when I was in the US. And so was the 10 year engine + drivetrain warranty (whereas a 6 year engine+ drivetrain warranty was the norm with Japanese mainstream OEMs). The only catch is that the 10 year period wasn't transferable if the first owner ever sold the Hyundai.

Korean brands have such a poor brand image over there that these guarantees and warranties are what make them stand any chance whatsoever in the new car market. Slowly, their products are proving their worth meanwhile. But they depreciate heavily in the used car market (which is a discouraging factor for lot of new buyers and for rental car companies) and in order to do something about it - Hyundai/Kia would do well to make that 10 year engine+drivetrain warranty transferable to subsequent buyers as well...