Kia to offer ‘job loss insurance’ to new car buyers in Europe

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, in an attempt to entice customers back into showrooms after the coronavirus shutdown. The insurance scheme, which costs €15-20 a month, allows new car buyers to delay monthly payments until they are rehired.

According to Kia, in Germany, where smaller car showrooms have been allowed to open for the past week, traffic is 50% below pre-crisis levels. Additionally, sales are down more than 25% in the first quarter and April is showing declines of around 70%.

“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. 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.” – Emilio Herrera, COO of Kia Motors Europe.

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