Hyundai will Take your Car Back (Most of the Time)
A Look at the Hyundai Assurance Program
In a life changing event, that is. Hyundai has begun to promote a new program that claims that “if you cannot make your payment because of a life changing event, we’ll allow you to return your vehicle and walk away from your loan obligation – and in most cases, we will cover most, if not all of the difference”. This program is good up to one year, post purchase, and at least two payments must be made in order for it to become effective. But is it a good deal?
What is a ‘Life Changing Event’ According to Hyundai?
According to Hyundai, it could be one of the following:
- involuntary job loss
- physical disability
- loss of license due to medical impairment
- personal bankruptcy if self-employed
- getting transferred overseas
- accidental death
Looking into this a bit further, the plan is managed by an auto dealer insurance and finance company called Walkaway. Hyundai appears to be the only automaker using this offer on a national level, but other automakers could potentially offer something similar through Walkaway or another provider. Hyundai has previously sold this program in Canada as an add-on insurance product for buyers and lessees. However, this time, it looks like Hyundai is footing the bill.
Thoughts on the Assurance Promotion
- I’m sure the Hyundai has run some numbers to see if this promotion makes sense for them financially. So any new sales that they wouldn’t have had from those overwhelmed by fear in the current economy and all of the free publicity that comes from it (sorry GM, Ford, and Chrysler) is an added bonus for them.
- I’d suggest reading all of the fine print before jumping at a promotion like this. The ‘and in most cases, we’ll cover most, if not all the difference’ line is incredibly vague. That’s two too many ‘mosts’ for my blood.
- It is a clever promotion, I must say, and I’d love to see U.S. automakers try something creative like this out. What have they got to lose? They might as well go out with a bang, right?
- I’ve driven a few Hyundai’s, I don’t like them. Buy American, not only to save your neighbor’s job, but because the quality these days is as good or better.
- From a personal finance perspective, if you are so concerned about potential negative equity from an auto purchase or lease that you are willing to make a purchase for re-assurance, you are probably getting the wrong car (or getting a car for the wrong reasons). There are plenty of great used vehicles out there that are depreciating at a much slower rate and are much cheaper than those just driven off the lot.
Your Thoughts on Hyundai Assurance?
- Does this promotion appeal to you at all?
- Would it make you switch from another automaker to Hyundai?
- Are you considering a new vehicle purchase or lease due to, or in spite of the current economy?
Don’t Miss Out on Free 20SomethingFinance Content Updates!
You May Also Find the Following Articles of Interest:
How Old Are Your Tires? Your Safety May Depend on the Answer
Interesting marketing idea, but it doesn’t really address any real issues. In my opinion you shouldn’t be buying a car you don’t already have the money for in the first place. My wife and I are still getting by on one car and a motorcycle. We’re hoping to buy a newer car this year, but not until we have the money saved up to buy it cash. If you own your car 100%, guess what? A life changing event happens and not only do you not have to make the payments, you get to keep the car
!
I’ll take the firm position that this is either really professional of them …. or really unprofessional. That depends on how it works out in the “real world.”
Sounds like a very smart promotion for them. BUT, of course you know that there is going to be tons of exceptions in the fine print. A lot of people will probably buy a car thinking they have a safety net when the reality is they don’t. Hyundai isn’t stupid, and people shouldn’t fall for t his and just buy the car cause of the promotion.
I agree that this is a great publicity stunt more than anything else.
I wonder how easy it will be to drop off the keys and walk away from your lease. I mean, from what I read it has to be something beyond your control or medical reasons beyond your control. Plus what affect will this have on your credit and ability to lease down the road?
Hyundai looks like a saint with this new policy but I cant see people driving up to the lot and dropping off cars.
Would I buy a Hyundai? no. I was close when that Genesis came out but after comparing it to my ES350, I opted to stick with what I have. Hyundai has improved a lot, but has a long way to go before I am pulled into their dealership to sign any papers. The promotion does not appeal to me at all as I always believe that owning a car 100% paid off is the way to go.
I will never understand why people that have unstable jobs try so hard to lease an Escalade or BMW but not be able to afford the gas and insurance that it requires. Live within your means!
Is your statement “Buy American, not only to save your neighbor’s job, but because the quality these days is as good or better.” completely anecdotal? I would wager it is.
——————–
As of 2007:
•Foreign cars made in the USA. Honda’s Ohio-built Accord is 70% domestic parts. Toyota’s Corolla is made in a California plant alongside General Motors models.
•American cars made abroad. Ford’s hit Fusion sedan is made in Mexico; only half its parts are from the USA or Canada. GM pitches its small HHR sport utility and giant Suburban straight at the American market, but they, too, are built in Mexico. HHR has only 41% American and Canadian parts.
http://www.usatoday.com/money/autos/2007-03-22-american-usat_N.htm
———————
The idea that buying a Ford automatically means you are benefiting the USA moreso than buying a Honda just doesn’t work anymore. Globalism.
In regards to quality, according to the JD Power Rankings Hyundai is right up there with the top brands. And they are ABOVE the American brands. When I get off work I will look for the latest JD Power Rankings.
AND…as Frank was saying, the Hyundai Sonata and Santa Fe are manufactured in Montgomery, Alabama. My wife has a Sonata and it has been excellent. Kudos to Hyundai for at least trying something new.
“Buy American, not only to save your neighbor’s job, but because the quality these days is as good or better.â€
I love to hear this statement.
My brother works for a transmission supplier to Toyota right here in North Carolina. A number of BMW’s are manufactured in South Carolina. How would buying a car from the “Big 3″ help anyone but Mexicans and the dealership?
The American manufactured cars and trucks are consistently rate below average for quality and reliability. They didn’t get themselves into this financial mess by accident, they’ve been selling an overpriced substandard product for too long. It’s only a matter of time before the consumer wises up.
By the way, where was the PC you just typed this post on made? Would you have paid more for it simply because it was made in America? You want the benefits of a global economy, but none of the detriments.
I love how defensive people get over foreign vehicles. Somewhere along the way, the PR departments of these foreign automakers have convinced people that their makes are just as American as Ford, Chrysler, and GM. Sure, they do have some employees here in the U.S. making cars and the big 3 have international employees.
What we’re really talking about is the survival of 3 major U.S. manufacturers who have a strong majority of their employees right here in the states, not just a few thousand as Hyundai and other foreign automakers. Maybe I’m partial because I live an hour from Detroit – but the effect on the economy is real. Michigan’s unemployment rate is well above 10% already and quickly rising. You cut out 300,000 direct jobs, millions of supplier jobs, and millions of retiree benefits, and EVERYONE in this country is going to be effected. If people stop buying Hyundai’s, maybe a few thousand people lose their jobs. It’s peanuts in comparison. Let’s get real, Kyle.
I’ve driven a Sonata, a Camry, a Civic, a Rio, and an Elantra, and deemed none of the five to be of the quality of GM, Ford, or Chrysler’s equivalents, and that’s an honest assessment. Sure, the Big 3 have made a lot of mistakes and had poor quality for many years, but the quality stereotype is simply just a stereotype that lives on, and unjustly so. I believe Ford and Cadillac only trailed Lexus on latest quality assessments. I don’t think your price statement holds up either. Case in point:
Ford Fusion – $19,035 – ave. user review on Edmunds 9.4/10
Toyota Camry – $19,145 – ave. user review on Edmunds 8.9/10
Honda Accord – $20,755 – ave. user review on Edmunds 8.0/10
Just as you think someone who supports an American brand is living in the past, you are supporting stereotypes based on late 80s/early 90s vehicles to the detriment of your country. I don’t support the big 3 out of patriotism, I support them because their vehicles are just as good or better and are competitively priced. Why would I buy a loaf of bread from someone in China when there’s a local bakery selling bread that is just as good for the same price – and my money stays local??? I won’t hold it against them that they had a food inspection violation 20 years ago.
Unfortunately I can not find a quantitative study that shows American cars have superior quality. Anecdotal evidence means nothing (case in point… I own an Accent and like it much more than a focus or a cobalt or a neon or.. etc).
Also, please provide statistics that show Hyundai would only result in a loss of a few thousand jobs in America, whereas say Ford would result in something to the effect of a factor of 20-30+.
And I see why you take that stance since you live by Detroit. Unfortunately you have a lot more to blame about your cities predicament than foreign automakers. You have the companies themselves and HORRIBLE government policy in your state.
@Frank – yeah, I tried to find Hyundai’s U.S. employees numbers, but it’s not openly listed anywhere that is easy to find. In 2004, they had 803 employees in the U.S. Even if it’s double that today, you’re looking at a factor of 100+ for each of the big 3 in comparison.
In terms of quantitative studies, JD Power’s initial quality survey gave top quality awards to 7 U.S. mfrs., 9 Asian, and 2 European in 2008.
The Hyundai Assurance product was created to to motivate intelligent buyers (like those who read finance blogs) to purchase a Hyundai. It is not a product for those with poor credit or no job. In that case, they couldn’t get a loan in the first place.
Hyundai assurance lets you walk away from your note WITHOUT detriment to your credit if you lose your job. Sadly, this is happening to many people unexpectedly and Hyundai is simply offering an out if the unexpected occurs.
The fact is that most people do finance their car (most don’t pay cash) and many are upside-down. Hyundai is trying to help people who have driven too many miles or didn’t put enough money down, etc AND ALSO lost their job.
If you want to read the fine print, a sample contract is on my website, http://www.eckerthyundai.com/MiscPage_4
This is crap and it’s really sad – though predictable – to see all the other car manufacturers follow suit.
Let’s see… worried about losing your job? Hey, why not buy a brand new car? The new car smell goes really well with a pink slip. And by the way, we have a GREAT financial track record you can trust with your hard earned income and financial future.
I find these ads disgusting.
Yeah it’s pretty bad, it’s a great marketing strategy in some respects but so was sub prime mortgages!!!
I wish Hyundai would take my car back. It’s a fucking piece of shit!
Leave a comment!
Free Content Updates!
Recommended Sites, Services, & Products
All Post Topics
Posts By Month
20SomethingFinance Reviews
Ooma Review
Net10 Review
Lala Review
Lifelock Review
Recent Posts
Reader Poll
Blogroll
Disclaimer…
Recent Comments
Top Commentators in 2010
Twitter Updates...
Posting tweet...