One can see how bad is the market for the carmakers when they launch an assurance program that covers job loss. Remember years ago when the economy was bad we have seen zero percent financing and car deals. It's not enough now to drive sales and Hyundai is launching an assurance program that will cover job loss.
What that actually means is Hyundai assurance program is offering to cover up to $7.5K of the debt on a new car in case of job loss, disability, personal bankruptcy if self-employed, accidental death and in case of the loss of driver’s license due to medical impairment.
Below is what the Hyundai Motor has released today in regard to its innovative assurance program to drive up the sales. I think a very clever idea. We just have to wait and see how the consumers will react to Hyundai Assurance.
Hyundai Motor America announced today an unprecedented program to protect consumers in this uncertain economic environment. Beginning today, Hyundai is providing a complimentary vehicle return program for the first year on every new Hyundai that is financed or leased for owners who experience an involuntary loss of income within 12 months of the purchase date. The "Hyundai Assurance Program" expands the protection offered through "The Hyundai Advantage: America's Best Warranty," which has provided 10-year, 100,000-mile powertrain protection to Hyundai owners for a decade. The Hyundai Assurance Program is complimentary for one full year, covers all Hyundai models and is available to everyone.
"We understand consumers' hesitance to commit to large purchases in today's economic environment," said John Krafcik, acting president and CEO, Hyundai Motor America. "Ten years ago, Hyundai's industry-leading warranty provided peace of mind to consumers about Hyundai's quality and reliability. Today we're extending that peace of mind to cover consumers' employment status and personal finances."
The Hyundai Assurance Program, the first of its kind for an automaker in the U.S. auto industry, allows consumers to walk away from a financing obligation when certain adverse life events occur, providing protection from financial shortfalls that arise from vehicle depreciation (negative equity) up to $7,500.
The Hyundai Assurance Program complements America's Best Warranty as standard protection on new vehicles financed or leased from a participating Hyundai dealer, and supplements all existing consumer incentives. The program is available to any consumer, regardless of age, health, employment history or financed amount of the vehicle. The program is complimentary for the first 12 months of the financing or lease date for vehicles financed through Hyundai Motor Finance Company and other third-party lenders and financing sources. Covered circumstances include:
-- Involuntary unemployment
-- Physical disability
-- Loss of driver's license due to medical impairment
-- International employment transfer
-- Self-employed personal bankruptcy
-- Accidental death
Consumers must have made at least two scheduled payments on their loan or lease, be current on all payments and pay for any outstanding balance above the $7,500 benefit amount which results from negative equity. Once the benefit is approved by the Hyundai Assurance administrator and the customer pays any outstanding balance, the customer returns the vehicle to the selling dealer, whose appraisal is factored into the valuation formula, and the consumer avoids further financial obligation or negative impact to his/her credit. The dealer is then able to remarket the vehicle.
For more details about the Hyundai Assurance Program, please visit http://www.HyundaiUSA.com or http://www.HyundaiAssurance.com.
HYUNDAI MOTOR AMERICA
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