Lotte Rental's T car offers full refund, W5m payout for flood-damaged used cars

Lotte Rental announced Sunday it will run a flood-car assurance promotion for its used-car brand T car, aiming to ease consumer concerns about flood-damaged vehicles during the rainy season.

Under the promotion, if a vehicle purchased through T car is found to have sustained flood damage within 90 days of purchase, Lotte Rental will refund the full purchase price and transfer fees and pay an additional 5 million won ($3,220) in compensation. The promotion runs through Aug. 31.

T car is a used-car retail brand Lotte Rental launched in May last year, focusing on long-term rental vehicles previously used by corporate executives and managers. The brand supplies only vehicles that Lotte Rental purchased new and has serviced by certified mechanics every three months, and it publicly discloses mandatory performance inspection results, insurance histories and maintenance records.

The brand's main offerings are three- to four-year-old Hyundai Motor and Kia vehicles. T car provides 180 days of free warranty repairs covering major components including the engine, transmission and braking system — twice the industry average of three months. It also offers free at-home maintenance visits for one year after purchase and a no-cost refund or exchange within seven days of purchase.

Lotte Rental also offered consumers a checklist for spotting flood-damaged vehicles. Buyers should fully extend the seatbelt to check for muddy stains or contamination, and verify that the manufacturing date on the seatbelt label matches the vehicle's model year. A musty smell when the air conditioner runs, along with water stains or mud residue inside the trunk or on the undercarriage, can also indicate flood damage. The company recommended checking insurance and maintenance records through the Insurance Development Institute, the Korean National Police Agency and the Ministry of Land, Infrastructure and Transport, and consulting a professional inspector.

South Korea's used-car market stood at about 2.26 million vehicles annually as of 2025, roughly 1.3 times the size of the new-car market at 1.69 million units. Flood-related vehicle damage is heavily concentrated in the summer rainy season, accounting for 95.5 percent of annual cases, raising concern that flood-damaged cars could enter the market and harm consumers.

"Consumer anxiety over flood-damaged cars is growing as this summer's rainy season is expected to be prolonged," a Lotte Rental official said. "Through our flood-car assurance guarantee, we will work to create an environment where consumers can buy used cars with confidence."

Meanwhile, Lotte Rental recently received an investment-grade credit rating from global ratings agency Fitch for the third consecutive year. Fitch assigned Lotte Rental a long-term credit rating of BBB-, with a stable outlook. Lotte Rental also maintained an investment-grade rating of Baa3 from Moody's for the third consecutive year as of March.