Die? Lose Your Job? Hyundai Says it's No Problem for Your Loan.
One obvious reason for slow car sales is that consumers are afraid they will lose their job and default on their auto loan. Hyundai wants you to know they understand that and they're cool with it.
Under the "Hyundai Assurance Program" you can turn your car back in and walk away from your loan if... Well, it's a pretty big "IF" and there is a lot of small print. But the new program is probably going to spawn a host of imitators as automakers struggle to overcome the objections of on-the-fence car buyers in a slow economy.
The Assurance Program is offered free with every new vehicle sold by Hyundai and it lasts for the first year of ownership, either for sales or for leases.
Hyundai achieved a higher level of acceptance once it offered it's 10-year, 100,000 mile warranty some ten years ago. Now it hopes to overcome the fears of consumers in an economy that is fraught with job insecurity.
And now for the fine print...
The situations covered by the Assurance Program are:
- Job loss.
- Physical disability.
- Loss of driver's license due to medical problems.
- Job transfer overseas.
- Self-employment personal bankruptcy.
- Accidental death.
In order to get the benefits a buyer has to have made at least two payments on their loan or lease and pay any outstanding balance above the $7,500 resulting from negative equity. Once these conditions are met the dealer will be authorized to take the vehicle back without any adverse effect to the buyer's credit history.
- Posted by
- Philip Reed January 6, 2009, 12:46 PM
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- Car Buying, Car Loans and Financing
- Technorati Tags:
- 000-mile warranty, 100, Assurance Program, economy, Hyundai, job loss, warranty
Not only is this a great promotional item, but it will likely not cost Hyundai very much money. Judging by the small print, it sounds like they are paying for an insurance policy that most buyers can get with their new car right now, from any manufacturer.
I heard rumors that they'd buy it back at the depreciated value. If that's the case, it's nothing more than a marketing gimmick.
I can't verify, as their web site tells me to visit a dealer for details. I suppose I could go to a Hyundai dealer, but nah!
I agree with Lee. Disability, unemployment, and term life insurance tied to auto and home loans and credit cards have been available for a long time. It's very clever of Hyundai to advertise this way.