We all have seen it; recent data has shown the auto industry is in much turmoil. The headlines report General Motors down as much as 22.7%, Chrysler down 30%, and Toyota down 15%. That being said… it is by far the best time to purchase a car, IF YOU TRULY NEED ONE. Automakers have thrown out incentive after incentive in attempts to entice new car buyers but few have been as radical as the one Hyundai has recently announced.
With roughly a 3% market share Hyundai has recently announced the, “Hyundai Assurance Program”. The program is one which allows a new car buyer to return a vehicle within the first 12 months of ownership. The program also covers the cost of depreciation on the vehicle within the first 12 months of ownership up to $7,500 in negative equity. The company states that the program is intended to protect the consumer, in case of involuntary unemployment, physical disability, loss of driver’s license due to medical impairment, international employment transfer, self-employed personal bankruptcy, and accidental death.
The program is subject to approval by Hyundai, stipulates that the assurance program coverage is limited to the above situations, and a consumer must have made at least two scheduled payments prior to filing a “benefit request” with Hyundai Assurance. Furthermore upon filing a request the value of the vehicle is assessed by the dealer.
It’s an interesting plan, which targets those who are currently on the fence about buying a new vehicle but hesitate due to the current economic situations. In 2008 Hyundai was down 14% in overall sales compared to 2007; let’s see where this new program takes them... who knows maybe others will follow?
That is interesting. I wonder if that will negatively impact the person's credit report. Probably not, but I also doubt that the application will be processed immediately. The people will probably miss several payments before being able to actually return the car.
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