Laid off? Hyundai will take your car back

[sweeps]

Hyundai Motor America is taking aim at Americans' worries about job security: If you buy a new Hyundai and lose your job within a year, you can give it back.

CNN Money article

[Broken Arrow]

That's pretty wild.

[poundwise]

A desperate gimmick from a troubled industry.

[disneysteve]

Originally Posted by poundwise

A desperate gimmick from a troubled industry.

Or you could see it as a novel way to appeal to customers in a difficult market. The companies that will come through the recession in the best shape will be the ones that figure out new ways of doing things. Maybe this is something that will attract new customers who wouldn't normally have looked at a Hyundai. I think it is shrewd marketing.

[poundwise]

Originally Posted by disneysteve

I think it is shrewd marketing.

It definitely is that; kudos to the marketing department.

In reality, I don't think it is very practical or helpful.

For one, it only applies to people who buy a new vehicle with a loan. If you buy your vehicle outright, there is no help for you. Or, if you are smart enough to not buy brand new, there is likewise nothing offered for you.

Second, the quote from Hyundai web site is, "...in most cases we will cover most, if not all of the difference." So, that means, at least in some cases, you will return the vehicle and still owe a portion due on the loan.

Third, let's suppose you lost your job after 1 year and 3 months. Now you still owe on a four, five, or six year loan, have no job, and Hyundai's 'benefit' isn't available to you.

Lastly, the President of Hyundai is quoted as saying, "In this uncertain economy, we are looking for ways to reassure shoppers that Hyundai still represents the best value in the auto industry." That sounds good, but I'm not quite sure how this accomplishes that.

I'd also suggest that most people need their vehicle(s). For instance, to look for work and go on interviews after a job loss/layoff, and so giving back their ride isn't going to be a viable option for many.

A much better plan for people who are concerned about their financial future, including job security, is to buy a 2 to 4+ year old vehicle that they can afford in the first place.

[disneysteve]

Originally Posted by poundwise

In reality, I don't think it is very practical or helpful.

Second, the quote from Hyundai web site is, "...in most cases we will cover most, if not all of the difference." So, that means, at least in some cases, you will return the vehicle and still owe a portion due on the loan.

I agree that it is more fluff than substance. Very few people, if any, will actually collect on this offer.

The reason they say it will cover "most" of the loan is that the maximum benefit under this plan is $7,500. If you owe more than that, you'd be responsible for the difference. If you buy a $15,000 car with $3,000 down and give it back 6 months later, you're going to owe more than $7,500.

[Joan.of.the.Arch]

So did you all hear yesterday of the fantastic success of this promotion? Hyundai sales are up 14.3% (or one source says 17%) over January 2008 in the US. In the UK, sales to private individuals are up 33.7%. Evidently that is even more significant because previously much of their UK sales had been to fleet owners.

Kia sales are also up, rather than down. Kia and Hyundai have some sort of corporate relationship if I understand correctly. I don't know if they have had this same offer to take back the car in unemployment. I have not seen or heard any such commercials.

[wincrasher]

This may not really be about driving new people into the market, but stealing share of those already looking to buy.

This could give an edge to Hyundai if you were looking at other brands and the price were close.

Even with Hyundai's notorious depreciation, you'd still be better off with this program than not if you were to loose your job and want to give the car back.

Surely the projected costs on this to Hyundai are calculated to be very, very low.

[sweeps]

Hyundai has "sweetened the deal". They will make up to 90 days of car payments for you while you look for a new job.

[GoodBuyGirl]

Originally Posted by sweeps

Hyundai has "sweetened the deal". They will make up to 90 days of car payments for you while you look for a new job.

I'm sure all they'll really do is tack it on to the end of your loan for you to pay later.

[tripods68]

I have to give "props" for Hyundai doing this when other automakers don't do squat. Hyundai is the first car maker to offer 100K miles bumper to bumper coverage. Two years ago, Hyundai offered lifetime free oil change as long you own the car. My parents still owns the car and haven't spend any DIME in oil change except, new brake pads and tires. This is an ingenious program that allow laid off workers to indemnify their credit somewhat.