By David HickeyThe South Korean carmaker Hyundai has launched a $1 million loan guarantee to help first-time car buyers secure a second hand car in a new deal with Tesla Motors, the second-biggest maker of electric vehicles in the world.

Key points:Hyundai says the guarantee will make its first electric-vehicle a “luxury car”Hyundai will provide a $100,000 loan for a car that’s sold after 2018Hyundai expects the guarantee to be fully repaid by the first-year of sales in 2019Hyundai is making a significant investment in its electric-cars programme to help raise the price of the premium brand’s first-hand-model, the Kia Soul EV.

The guarantee is one of the most significant of its kind in the automotive industry.

It will help cover costs of production and repair, with the loan to be repaid by a car buyer who buys it at a discounted price in 2020, Hyundai said.

“The Kia Motor Company is pleased to announce the Hyundai Guarantee Program,” said Hyundai Motor Europe Chief Executive Officer Marko Bittman.

“It is an important step in Hyundai’s commitment to build a competitive, high-quality electric car offering.”

The Hyundai guarantee is the first of its type in the car industry, Hyundai Motor America’s CEO Andrew Kohn said in a statement.

“Hydercom’s commitment has always been to ensure that first-home buyers can get the best value for their investment,” Mr Kohn added.

“This program demonstrates that Hyundai will deliver a first-of-its-kind solution to the growing need for a secondhand car in the market.”

Hyundai said the Kias and the Spark EVs, which are built by the German company, would be available in 2019 and 2020.

“Both vehicles will be delivered by 2020,” Hyundai said in its announcement.

“We expect that the Spark EV and Kia EV will be a popular choice among consumers and will offer outstanding value for money.”

The guarantee was announced at a joint press conference with Tesla and Hyundai Motor Korea, and is expected to generate around $1.1 million in total investment for Hyundai Motor.

“In 2018, we announced a new initiative called the Hyundai Promise, which is a first step in the next step in our electric car programme,” Hyundai Motor Group President John Chen said.

“The Hyundai Promise will provide our dealers with a new opportunity to meet the growing demand for second-hand electric vehicles, and to further extend our partnership with the world’s leading electric vehicle manufacturer, Tesla.”

Hyde said it had already made a commitment to invest in electric-transport vehicles and to work with Tesla to develop electric vehicles that could be built at the same time.

“Our commitment is to deliver an affordable electric car that meets the needs of consumers,” Mr Chen said at the press conference.

“For us, it’s all about making electric cars as affordable as possible, and our promise will help achieve that.”

Kia Motors has said it expects the Spark electric car to be priced at around $50,000 in 2020.

Kia has been the biggest name in the industry when it comes to investing in the development of electric cars, with a series of electrified cars including the Kiehl Karma, the Karma EV and the Kona.

Kiesa has said the Spark would be its first car that would have a range of 200 kilometres and it would have no emissions at all.

“That’s why we’re thrilled to announce that Hyundai is also committed to build an all-electric vehicle, one that we’re excited to drive,” Mr Bittmann said.

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