Posted November 05, 2018 05:07:17Kia’s first car loan is no more.
The Korean automaker announced Tuesday that the automaker will not be renewing its $300 million car loan program with its auto lenders.
The program was the subject of fierce criticism after it was revealed that some of the borrowers had failed to pay off their car loans, and some borrowers were delinquent on payments.
Kia has not said when it plans to end the program.
Kia said that its auto lending program will remain in place until the company can find a buyer for the vehicle.
“As a result, we cannot guarantee that the program will continue,” the company said in a statement.
As part of the car loan guarantee program, Kia loaned some of its more than 50,000 vehicles in the U.S. to borrowers who were unable to pay the principal and interest on their loans.
In addition, Kysafield, which helps with the loan payments for the loan, also gave Kia a loan guarantee for $1.1 billion.
Kia did not say how much of its current vehicle loan portfolio it would end.
The company said it will not announce the details of the program or the buyer until it has secured a new loan for the Kia brand.