California-based Hyundai Motor America has introduced a unique finance deal that allow customers to return cars if they lose their jobs in the first year.
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A private label version of Walkaway USA’s Protection for Automotive Financing product called the ‘Hyundai Assurance Programme’ is described as a “complimentary 12-month vehicle return programme provided on every new Hyundai that is financed or leased at participating dealers.
Any Hyundai customer may return a vehicle within the first 12 months of ownership and walk away from his or her loan obligation – up to US$7,500 in ‘negative equity’ – in the event of an loss of income under certain circumstances.
“In this uncertain economy, we are looking for ways to reassure shoppers that Hyundai still represents the best value in the auto industry,” said John Krafcik, acting president and CEO, Hyundai Motor America.
“Our agreement with Walkaway allows us to offer a unique form of financial protection in all 50 states for the first time by an automaker.”
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By GlobalDataHyundai said the Walkaway programme had been launched in Canada in 2000 and made it possible for consumers to walk away from over US$35m in automotive-related debt while giving retailers a competitive sales advantage.
Local reports said cars or trucks may also be returned under the programme if income is lost due to “certain life altering circumstances” such as bankruptcy, overseas transfer or accidental death.
“The assurance is our attempt to proactively address what we believe is one of the primary contributors to today’s economic woes – a dramatic decline in consumer confidence,” Hyundai sales head David Zuchowski told Reuters.
“There is a myriad of very compelling offers in the marketplace today but regardless of how strong the deal is, shoppers are simply not prepared to make a purchase decision if they’re concerned about their job prospects or their ability to make payments,” he said.
The programme was designed to reinforce Hyundai’s “value position” in the market and help overcome that uncertainty by providing confidence in the form of a safety net, Zuchowski said.
Zuchowski said the free programme would not hurt a customer’s credit rating in the event of a default because the vehicle return would be treated as an early pay-off.
Hyundai has also offered a 10-year, 100,000-mile powertrain warranty for some years.
Its US sales plunged 48.3% to 24,037 last month and were off 14% to 401,702 units for the full year.
