Hyundai sweetens deal for laid off buyers
Hyundai Motor Co. will launch an addition to its popular incentive program under which the South Korean automaker allows consumers who have lost their jobs to return newly purchased cars.
Under the new program, dubbed "Assurance Plus," Hyundai will offer to cover three months of car payments while the buyer looks for a new job, Joel Ewanick, vice president of marketing at Hyundai Motor America, said in a telephone interview on Thursday.
At the end of the 90 days, the consumer can still return the car, he said.
"For a lot of people, they don’t necessarily want to turn their car back in," Ewanick said. "They want a car because it’s their way of getting around. It’s their independence. It’s the way of looking for another job."
The addition to the incentive program begins Sunday, when Hyundai runs eight television ads during ABC’s television broadcast of the Academy Awards ceremony, he said. The program will run through the end of April, while the larger Assurance program continues through the end of 2009.
The auto industry’s U.S. sales in January were at the weakest monthly annualized rate in 27 years, but Hyundai saw demand rise 14%, a trend Ewanick partly credited to the Assurance program, which was launched in early January low rate payday loans.
Cars or trucks may also be returned under the incentive program when income is lost due to "certain life-altering circumstances" such as bankruptcy, overseas transfer or accidental death.
A Hyundai customer may return a vehicle within the first 12 months of ownership and walk away from his or her loan obligation - up to $7,500 in "negative equity" - in the event of a loss of income under certain circumstances.
The consumer must make the first two payments on the loan or lease and have been employed for at least 90 days prior to the purchase.
There is no charge for the program, and a customer’s credit rating is not damaged in the event of a default because the vehicle’s return is treated as an early payoff.
Ewanick said at least one buyer has so far taken advantage of the program to return his new car after unexpectedly losing his job.
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