카카오뱅크 중고차 대출Kakao Bank is preparing for the long term in terms of connecting automobile finance and related services that meet customer needs by streamlining processes, expanding business hours, and improving interest rates.
Kakao Bank launched the ‘Used Car Purchase Loan’ product on the 24th.
This product improves convenience by allowing you to check the expected interest rate and limit using only the vehicle number without submitting complicated documents. You only need to submit one document, a car sales contract, and you can apply for and execute a loan even on weekday evenings or weekends, eliminating the inconvenience of existing bank car loans that were limited by business hours.
Loans can be made for passenger cars, vans, and cargo vehicles (less than 2.5 tons), and loans can only be made to vehicles for sale directly owned by used car dealers.
A Kakao Bank official said, “The reason we only allow vehicles registered with used car sales companies is because there is a high possibility of fraud occurring during transactions between individuals,” and “We only deal with vehicles registered for sale by registered trading companies such as the Used Car Sales Association Association. “There is,” he explained.
In addition, the strength of this product promoted by Kakao Bank lies in its interest rate competitiveness. Kakao Bank’s ‘Used Car Purchase Loan’ interest rate is as low as 5.49% (as of October 24) and the loan period is up to 5 years. Additionally, the early repayment penalty is 100% exempted.
This is 3-4% cheaper on average compared to existing auto loans in the capital industry.
According to the Credit Finance Association’s disclosure information portal, the average interest rate for newly handled used automobile financial products from June to August this year is 7.95% for KB Kookmin Card and 9.80% for Shinhan Card.
Existing banking circles did not place much emphasis on the car loan market. This is why automobile loans are subject to the Debt Service Ratio (DSR) regulation, so if there is a mortgage loan or a deposit loan for lease or monthly rent, there are restrictions on using automobile finance because it is blocked by the DSR regulatory limit. As a result, many customers defected to credit card companies or capital companies.
Although there are individual differences for each customer and there may be differences depending on the time of inquiry, the average interest rate is expected to be a condition for Kakao Bank to absorb some of the customers who had previously defected to credit card companies or capital at a low level.
An official in the financial industry said, “From a banking perspective, the automobile finance market is not an explosively large market, so Kakao Bank is expected to start as part of a new business and gradually expand its business,” adding, “Internet banks and fintech companies can do well in the starting stage.” “It is expected that there will be a lot of influx of customers as we have increased convenience.”
“Once we secure a certain number of customers, we will adopt a method of expanding new types of loans as well as adding various services,” he said. “As Hyundai Motor Company and Lotte Rental have formalized their entry into the used car market, this market is expected to grow even larger.” “Kakao Bank will also have expectations,” he added.
The domestic used car market is twice as large as the new car market. Not only Hyundai Motors and Lotte Rental, but also Kia and KG Mobility are planning to enter the used car market. As large corporations advance, it is expected that the size of the country could grow nearly three times that of the United States. Accordingly, if Kakao Bank establishes relationships with these companies through partnerships, it is expected to achieve rapid growth in terms of profitability and scale.
A Kakao Bank official said, “We are preparing for the long term in terms of connecting automobile finance and related services that meet customer needs.” He added, “Currently, we are making every effort to provide products with low interest rates to provide benefits to customers. “As we have just entered this business, there is no immediate progress with large corporations such as Hyundai Motors, but we are looking positively at the possibility of partnerships with partners in the used car business in the future,” he said.
He added, “We will expand our lineup by launching a loan for the purchase of a new car, starting with a loan for the purchase of a used car.” He added, “We plan to expand into the financial life platform area by introducing a car loan and insurance comparison service in the future.”
