Filed under: Car Buying, Hyundai, Carsumer Advocacy
Keep the receipt: Hyundai buyers can take back the car if laid off
If you need a new car but your job at the First National Bank of the City Federal isn't exactly guaranteed, Hyundai has an offer just for you.The Hyundai Assurance Program gives buyers some peace of mind that if they lose their jobs during their first year of ownership, they won't have to pay back the full amount owed on their cars. Hyundai is teaming up with Walkaway USA to provide the 12 months of protection at no extra charge to buyers.
There are plenty of catches, though. Hyundai buyers must have made at least two payments on their new cars, be current on said payments, and their reasons for unemployment must fall under a list of common causes. The plan also only covers $7,500 worth of depreciation. In other words, if you beat the hell out of your Hyundai and your car's now worth $7,500 less than what you paid for it, you gotta come up with the rest. There's also probably a clause somewhere in there somewhere that also sticks the buyer for tag, title, taxes, fees, etc. etc.
Otherwise, drive your new Genesis for 11 months, re-enact Jack's Smirking Revenge from Fight Club and take the car back.
[Source: The Auto Channel]
Reader Comments (Page 1 of 3)
Auari 10:17AM (1/04/2009)
If anyone has the slightest thought of losing there job in less than a year. I don't think buying a brand new Hyundai should be on there to do list.
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rndmnme 10:27AM (1/04/2009)
Yes, I'm sure the hundreds of thousand people lid off last year all knew it was coming well in advance.
/sarcasm.
caddy-v 12:53PM (1/04/2009)
The infamous Hyundai fine print. If they honor this program like they honor their warranties, well, use your imagination. Read the fine print. They're using trade in value.
2009 Sonata gls
msrp $23,145
tax title lic doc $2,300
down payment $2,000 (National average)
total $23,445
Trade in value on an 08 $11,525 (Kelley blue book)
Deficit $11,920
Hyundai good will $7,500
Still on the hook for $4,420
I used an 08 for comparison only because Kelley does not list an 09 yet. And as anyone knows, once a new car leaves the dealer it's consider a year old.
Sorry, I don't trust Hyundai. Two very bad experiences with them.
Rocketboy 1:25PM (1/04/2009)
rndmnme... yes, because NOBODY saw that giving morgages to people who couldn't afford them would cause ANY downturn in the economy.
No, you really do have a good idea how your company is doing, most people just don't want to admit it to themselves.
ambientFLIER 2:27PM (1/04/2009)
Caddy-v: God forbid Hyundai makes it easier to buy a car in these conditions... Evern with the limitations in the fine print, you're still better off than if you bought one without this offer.
caddy-v 7:44PM (1/04/2009)
Caddy-v: God forbid Hyundai makes it easier to buy a car in these conditions... Evern with the limitations in the fine print, you're still better off than if you bought one without this offer.
Ambient,
How does this make it esier? So you buy the car, 50% are not going to put money down or whatever they trade in in this economic climate are more likely than not upside down. At an average of 9% interest the monthly payment figures to around $528.00 per month and in the first year of the loan very little money is used to pay off the principal. So six months you get laid off and you turn your car in are you supposed to get around to find a new job? You have to go buy another car. Since the average working class person lives paycheck to paycheck where the heck does the money come from? Now you've lost your down payment and your still on the hook for the remainder. How does this make any sense?
If you really want Hyundai to do something good, and I will join you in applause, then get them to quit lobbying the South Korean government in keeping imports out of S. Korea. 664,000 S. Korean cars exported to the US last year and because of tarriffs and dutys only 6300 cars from any foriegn country allowed in. Bottom line is that if your job is or may be in jeopordy, fix up the clunker and wait it out.
None 10:21PM (1/04/2009)
"If you really want Hyundai to do something good, and I will join you in applause, then get them to quit lobbying the South Korean government in keeping imports out of S. Korea. 664,000 S. Korean cars exported to the US last year and because of tarriffs and dutys only 6300 cars from any foriegn country allowed in. Bottom line is that if your job is or may be in jeopordy, fix up the clunker and wait it out."
Since US and Korea are military allies, then US is doing pretty well in helping Korea economically against extraneous threats.
XJ 10:57AM (1/05/2009)
Caddy-V: You're fudging with the numbers...
1) No one buys a new Hyundai at MSRP. Brand new 2009 Sonata GLS range for much less than $23k. Try $15600-17600. And even if you're talking about the V6 GLS, then it's still under $19k. (Source: www.fitzmall.com).
2) You're comparing the MSRP of a 2009 Sonata (refreshed version and price hike) against the Trade In Value of a 2008 (prior to the refresh and increase in price). The 2009's went up approximately $1000-2000 in price, so that also accounts for the difference.
3) Also, you may be paying $2,300 in taxes and fees were you live, but most states don't cost that much -- about 5% + couple hundred in fees.
Play with these (see: more accurate) numbers and tell me how one gets screwed with this program?
chconline 10:21AM (1/04/2009)
$7500 worth of depreciation coverage of a year for a Hyundai? For a manufacturer that makes its way into every "Top X worst residual value cars of 2008", I wouldn't really count on it. Eg. Hyundai Sonata: 30.8% after 1 model year. (Source: Edmunds.com) -- even the base model would have dropped well over $10k USD in about a year's time.
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compy386 10:25AM (1/04/2009)
30% depreciation still means you can get 25,000 car and still be around $7.5k. Plus you've made a few payments so you won't lose out a full 7.5K. Also depreciation is based on MSRP. I certainly hope no one is paying MSRP for a Hyundai (or any car for that matter).
2007RC46SP2 10:40AM (1/04/2009)
good luck trying to buy a Fit for less then retail.
Dan 12:29PM (1/04/2009)
By your math a base Sonata would have to run around $35,000.
I bought a Sonata 30 months ago and it still hasn't depreciated $10,000.
According to Edmunds' private party TMV if I sold it today I would be down $6,800. $1,300 of which were state taxes.
chconline 11:57PM (1/04/2009)
I am talking about residual value, not depreciation.
Higher residual value = Lower depreciation
Lower residual value = Higher depreciation
According to Edmunds.com, the best car for 2008 has residual value of 56.4%. The worst car for 2008 is the Kia Rio at 26.3%. You get the idea.
jpm100 10:38AM (1/04/2009)
Most who would need this probably are struggling at getting financing.
By needing only to cover the potential depreciation, perhaps this helps a person to get financing. Otherwise, its not going to do much.
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Timsvtgen1 10:49AM (1/04/2009)
As if they didnt have bad enough depreciation.....
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Steve Neill 11:04AM (1/04/2009)
If anything, there appreciation will go up from this.
Doing something nice for people in need has never sought a bad stone.
Consider Campbells soup, which donated Soup to the army during World War II. They don't seem to be doing too bad at all... wouldn't you say?
Timsvtgen1 11:42AM (1/04/2009)
To Steve Neill: I just don't think flooding the market with even MORE used cars could raise the prices... Thats exactly opposite on how the market has ever worked.. And I doubt Hyundai is goin to change it.----While I respect their action for the cause.
No offense but im not sure the soup industry has much to do with the auto industry so Im not sure why the comparison is being brought on. As an example I understand what your saying, but Im not sure I can say that the reason they are thriving today is because of them donating in WWII . I mean look what the Big 3 did then..... Completely stopped making their own cars and went to work for the Govt building aircraft, guns, jeeps ect. for the war. Now where are they? They should have donated soup instead.
Sparkster 10:52AM (1/04/2009)
Still not a bad idea, a few people and I mean a few people have jobs working for a county,state or federal agency that don't worry as much about job security as much as maybe an electrician working in the construction industry.The question I have of course is..., is this crisis going to be over in 12 month's ? As most people on this blog know , there may be a lot of used Hyundai's at the auctions in 12 months. Still think buying a car now helps rather taking a look ,see attitude . Would this idea work on Certiffied Used cars as well?
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MM 11:24AM (1/04/2009)
I think this would work even better with Certified Used Vehicles since the large sum of depreciation has already occurred.
P.V. 10:53AM (1/04/2009)
I think it's great that Hyundai is doing this. Kudos to Hyundai for actually making life easier in hard economic times!
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