MAX!, a non-subvented standard loan product offered by Hyundai Capital Canada (HCCA), has been well received by Canadian Hyundai and Kia dealerships.
HCCA, the captive financial services partner of the Hyundai, Kia, and Genesis brands in Canada, reported that total funded MAX! loan contracts July 2021 were 10 times greater than in February 2021, when the product was launched. Market share of MAX! increased 4.5 times during this same period.
HCCA launched MAX! as a key component of its overall strategy to improve competiveness of financial product offerings, increase product coverage and enhance profitability. Product design and implementation was performed internally, and promoted within the Hyundai and Kia dealer network by its dedicated Field Sales staff. Offering a finance term of up to 96 months, combined with an attractive customer interest rate and dealership referral fee, the product has secured a strong foothold within the Canadian automotive lending landscape.
“Through competitive product design, and incorporating feedback supplied by our dealer partners, we have been able to attract both good volume and good credit quality with the MAX! product. This has generated positive financial performance combined with efficiencies in underwriting through increased auto-adjudication, which translates into a better customer and dealer experience,” said Mark Di Donato, Chief Sales Officer at HCCA.
HCCA was established in 2014 as the exclusive automotive leasing provider to the Hyundai, Kia and Genesis brands and their approximately 450 authorized dealerships in Canada under its trade names: Hyundai Motor Finance, Kia Finance and Genesis Finance. Ever since, the company has expanded its product suite to include subsidized new vehicle loan financing and now offers a competitive non-subsidized new and used vehicle loan product to a broad credit spectrum of customers, with the launch of MAX!.
HCCA has been solidifying its position as a leading auto finance company in Canada. The company’s loan assets increased 272% to 1.9 billion Canadian dollars in July 2021 from 0.5 billion Canadian dollars at the end of 2019. Its financial assets stood at 4 billion Canadian dollars in July this year, up 90% year-over-year. As of July 2021, the company posted a record-high lease and finance penetration rate.