• Feb 20th 2009 at 12:59PM
  • 13
While the U.S. auto industry experienced a massive drop in sales last month, Hyundai was one of just three automakers that posted an increase. While a number of factors can account for the South Korean automaker's success in a down market, especially the addition of an all-new model, the Genesis, to its lineup, Hyundai knows its creative Assurance Program is helping. People are worried about losing their jobs in a recession and committing to the monthly payments of a new car sounds like a bad idea. The Hyundai Assurance Program allows new owners to return their Hyundai within one year if they lose their job, which helps put those prospective buyers at ease with their purchase.

Hyundai is now taking its Assurance Program to the next level with the Hyundai Assurance Plus Program. The Plus means that owners who suffer a disability or lose their job will get payment relief for 90 days or three car payments. The goal is to give customers a 90-day window to replace their income, and if they fail to do so, Hyundai will still take the car back under the terms of the original Assurance Program. There are a few stipulations to keep buyers honest, though, like being employed for at least 90 days prior to qualifying for the Assurance Plus program. Hit the jump to read up on the program's details.

[Source: Hyundai]



Hyundai Adds Payment Relief to Existing Assurance Program Limiting the Financial Risk of a New Vehicle Purchase

FOUNTAIN VALLEY, Calif., Feb. 19, 2009 – Hyundai Motor America will expand the protection offered by the innovative Hyundai Assurance program with Hyundai Assurance Plus, adding 90 days of payment relief to the existing protection plan. Hyundai Assurance Plus is part of Hyundai's Spring Sales Event, which runs from Feb. 23 to April 30, 2009. Hyundai Assurance, which debuted in January, allows consumers to return any new Hyundai leased or financed in 2009 if the owner unexpectedly loses his/her income within one year of the purchase date. Both Hyundai Assurance and Hyundai Assurance Plus are available at all participating Hyundai dealerships nationwide. For full details about the programs, visit: www.HyundaiUSA.com.

Hyundai Assurance Plus provides a one-time, 90-day payment relief benefit in the event of involuntary unemployment or physical disability. For qualifying consumers, this benefit helps them keep their vehicle for three months while attempting to replace their income. Hyundai Assurance Plus pays the lender a lump sum equal to 90 days of loan or lease payments.

To qualify for Hyundai Assurance benefits, consumers must have made at least two scheduled payments on their loan or lease, be current on all payments and have been employed for at least 90 days prior to filing for the benefit. Consumers who utilize their payment relief benefit can still return their vehicle within a year of the qualifying event under the terms of the program. This payment is not pro-rated and never has to be re-paid, even if the owner regains health and/or returns to work inside the 90-day period. The total payment relief benefit provided to an owner will be deducted from the Hyundai Assurance maximum benefit of $7,500 if the vehicle return option is exercised.

"We continue to look for ways to help consumers in this challenging economic environment, so we're offering unprecedented financial protection when they finance or lease a Hyundai," said Joel Ewanick, vice president, Marketing, Hyundai Motor America. "With our 10-year, 100,000-mile warranty, Hyundai Assurance, and now Hyundai Assurance Plus, we're telling consumers that we are all in this together, and we'll get through this together."
Hyundai Assurance, the first program of its kind for an automaker in the U.S. auto industry, allows consumers to walk away from a financing obligation when certain adverse life events occur, providing protection from financial shortfalls that arise from vehicle depreciation (negative equity) up to $7,500. Hyundai Assurance and Hyundai Assurance Plus are complimentary for one full year from the purchase date, cover all Hyundai models and are available to everyone.

Hyundai Assurance and Hyundai Assurance Plus are complimentary for the first 12 months of the financing or lease date for vehicles financed through any lender or financing source. These programs complement America's Best Warranty as standard protection on new vehicles from a participating Hyundai dealer, and supplement all existing consumer incentives. The programs are available to any consumer, regardless of age, health, employment history or financed amount of the vehicle.

Covered circumstances for Hyundai Assurance include:
  • Involuntary unemployment
  • Physical disability
  • Loss of driver's license due to medical impairment
  • International employment transfer
  • Self-employed personal bankruptcy
  • Accidental death

Payment relief benefits under Hyundai Assurance Plus are available in the event of:
  • Involuntary unemployment
  • Physical disability


Oscar® Broadcast Serves as the Stage for Introduction of "Hyundai Assurance Plus"

FOUNTAIN VALLEY, Calif., Feb. 19, 2009 – Hyundai will launch its first national advertising campaign on Oscar Night® with eight total spots airing on ABC's telecast of the 81st Annual Academy Awards. Building on the momentum of Hyundai's Super Bowl advertising, Hyundai will again communicate three major initiatives during its airtime, including a significant addition to the innovative Hyundai Assurance program called "Hyundai Assurance Plus," the "2009 North American Car of the Year" award garnered by the Hyundai Genesis, and the launch of the exciting new Hyundai Genesis Coupe. Hyundai has secured seven 30-second ads and one 60-second ad that will air during the Oscar® ceremony.

All-new ads announcing the launch of Hyundai Assurance Plus will debut during the telecast. Hyundai Assurance Plus extends the security offered by the Hyundai Assurance program by adding 90 days of payment relief to the existing protection plan for consumers that finance or lease a new Hyundai between Feb. 23 and April 30. Hyundai Assurance, which debuted in January, allows consumers to return any new Hyundai leased or financed if the owner unexpectedly loses his/her income. The program is available at all participating Hyundai dealerships nationwide. For full details about Hyundai Assurance and Hyundai Assurance Plus, visit: www.HyundaiUSA.com.

Two additional ads will debut on Oscar Night. Hyundai will unveil a new Genesis Coupe ad featuring music by Grammy-award winning cellist Yo-Yo Ma, and performance driving by racecar driver Rhys Millen. Footage of Millen navigating Road Atlanta in Northeast Georgia will be edited to match a beautiful solo of the "Gigue" from Bach's Suite No. 3 in C Major for Unaccompanied Cello. Yo-Yo Ma's ad is the follow-up to a Genesis Coupe ad featuring music by Smashing Pumpkins that debuted just before the Super Bowl kick-off earlier this month. The Smashing Pumpkins' version will make an encore appearance on Oscar Night as well. The spots will bookend a commercial break.

The two spots demonstrate the track-worthy performance and fluid design of Hyundai's first-ever rear-wheel drive sport coupe, which is hitting Hyundai showrooms now. The campaign includes an online component at www.EditYourOwn.com which allows visitors to create their own version of a Genesis Coupe ad to be shared with friends and posted to social networking sites.

Hyundai will also debut a new 60-second corporate spot highlighting the history of the company and its commitment to the U.S. market.

"We have so many great stories to tell that we couldn't miss the opportunity to speak to the huge national audience drawn to the Academy Awards," said Joel Ewanick, vice president, Marketing, Hyundai Motor America. "On a night when the entertainment industry gathers to celebrate its success, we want to honor Hyundai with an assortment of ads highlighting our own accomplishments."

In addition to the new ads, Hyundai will also highlight the Genesis sedan's "2009 North American Car of the Year" honor called "Angry Bosses" which debuted on the Super Bowl as well. Hyundai Genesis took top honors in the most exclusive award in the North American auto industry when it was named "2009 North American Car of the Year" on Jan. 11, 2009. A jury of 50 independent automotive journalists evaluated all the new cars introduced last year and chose the 2009 Hyundai Genesis as the best new model.

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    • 1 Second Ago
      • 6 Years Ago
      No, it's the negative equity of upto 7500 they cover.

      For ex., customer buys a 20k Sonata & puts 2k as down payment. Th remaining 18k he finances at 0%APR for 3 years (Current Promotion). His monthly payment is now $500.

      Now, he faithfully makes payment for 6 months & then loses his job. He has already paid 6x500=3k of the loan & hence owes 18k-3k=15k.

      Assuming that a 6 month old car now costs 10k (against the purchased price of 20k). The negative equity is 15k-10k=5k.

      When he returns the car to Hyundai,Hyundai's loss is 5k, well below the max of 7.5k.

      Assume that the 6 month old car's price is now 5k (against a purchase price of 20k), a full 3/4th drop in price, a highly unlikely event. The negative equity is 15k-5k=10k. Hyundai covers a max of 7.5k & the remaining 2.5k has to be borne by the buyer.

      The story here is that Hyundai doesn't lose much with this program.
      • 6 Years Ago
      from what I understand Hyundai only covers 8k of the price. the rest you are still stuck with at the end of the loan.
        • 6 Years Ago
        They cover what the dealer determines the car is worth and up to $7500 negative equity.
      • 6 Years Ago
      Don't buy what you can not afford
        • 6 Years Ago
        In spite of Sea Urchin's low rating, I will second his opinion. Our country got into this economic mess because far too many were living off borrowed credit, such as taking second or even third mortgages out of their houses. To elaborate on what Sea Urchin wrote: Don't live from paycheck to paycheck. If you save a little here and there, one day you will have stashed away enough money to buy a car, and pay for it in cash (or at least bring a checkbook, not a briefcase full of greenbacks). And if you are ever unfortunate enough to lose your job, that stash can be used as a rainy-day fund to see you through the tough times.
        • 6 Years Ago
        Very true...but this is still a brilliant program. One may need a car but still worry about pulling the trigger based on the unknown...this mitigates some risk.

        Even if one could pay cash for the car and not finance it may be better to keep that cash and finance for 1 year. Just as insurance against something bad happening. Pay off the note at the end of the first 12 months. Then if you lost your job during that year you could jettison the debt and maintain your cash position to tide you over until you are employed.

        Mostly this is to get people in a position to buy a car off the fence. I believe this is targeting at those that can afford it and not a way to get the deadbeats in.
      • 6 Years Ago
      This is one amazing company.
      • 6 Years Ago
      This is yet another example of Hyundai doing something right.

      1) They control their own financing arm
      2) They're reading what the concerns of the market are
      3) They're offering a solution

      Speaking of doing things right, when does the US get Hyundai's 175 hp 1.6 GDI engine?
      • 6 Years Ago
      I've advocated over the past month a national insurance program for automobiles and housing that models itself off of the Hyundai program but does it for three years.

      Program highlights:

      For up to three years from the date of signing the purchase contract, the buyer is protected and covered to make all loan payments due to disability and unemployment that is out of their control. Consumer may purchase supplemental disability insurance from a private party as they choose to extend the program for years four and five. If at the three year anniversary, the consumer is still disabled and unemployed, they may turn in their vehicle without owing anything on the balance of the loan. Loan will be considered paid in full as long as vehicle is in good repair, condition, and has less than 75,000 miles on the odometer. Failure to meet these standards obligates the consumer to keep their vehicle and to make their own payments. When vehicle is turned in under this program, the vehicle will be auctioned off to the highest bidder and the balance of the car loan will be first paid for using the fees paid by the parties in the contract; balance on the account will then be paid using program fees from the initial funding of $5 billion set by Congress; after three years the program shall be funded from any unused fees from prior three year underwriting with incidental funding provided by Congress as needed on an annual basis. Unused program funds may not be used by Congress for any other purpose other than to underwrite this loan protection program. Qualification points for this program may be made more stringent, but they made may not be made more lenient by Congressional or administrative agencies. The intent is to cover well-qualified and conscientious borrowers from catastrophic unemployment and disability.

      Program also guarantees trading in another vehicle as part of a loan payoff in the case that the dealer who is obligated to payoff the trade-in balance owed goes bankrupt. Federal Government will reimburse primary lienholder for the balance of the unpaid loan that was to be paid off by the dealer; Federal Government shall seize assets and place lein(s) to offset this cost to reimburse the program.

      Customer responsibility:

      - Credit FICO score of 680 or better;
      - Employed 6 months or longer at the time of purchase contract signing;
      - No late payments during the last 90 days;
      - Purchase of a new vehicle $35,000 or under
      - Down payment of 10% - half of which can be in rebates; balance must be in trade-in or cash from consumer.
      - Credit terms may not exceed 60 months for length of loan.

      How the program is paid.

      Consumer pays 1% fee which is due at contract signing for the insurance. If the consumer makes all payments on the loan without being late, they receive a voucher for a new vehicle purchase after 3 years for that 1% to apply to next purchase.
      Dealer pays $500 per vehicle regardless of sticker price.
      Automaker pays $1000 for each vehicle that gets less than 30 miles per gallon on the highway (EPA); $750 for each vehicle which gets less than 35 miles per gallon on the highway (EPA); and $250 for each vehicle that exceeds 35 miles per gallon highway (EPA).

      Federal government shall underwrite the cost of the program that exceeds the contributions for all participants.

      Housing provisions could be similar with buyer and seller paying fees as well as the mortgage company (to ensure qualification provisions of the consumer are met).

      Advantages - this program supports creditworthy individuals and does not allow those who are not conscientious borrowers to participate. Costs of program are borne primarily by the private sector with the Federal Government only being a last resort. Contract period that is covered is 3 years which covers most of the upside down period of contracts.
        • 6 Years Ago
        NO! I have no trouble buying a car. Why should I have to help you (not you exactly, but anyone) buy a car while driving up inflation, driving down residual value, and promoting financial irresponsibility.

        Props on the out plan and effort, very detailed, but misguided in my opinion. Self-reliance is the way to go. We need to promote personal responsibility.
        • 6 Years Ago
        I forgot the income qualification - please amend to include annual earned income to be $28,000; cost of living adjustments will need to be made to major metropolitan areas like New York and Los Angeles, etc whereby the qualifying income will need to be raised commensurate with this national average income.
        • 6 Years Ago
        "Consumer pays 1% fee which is due at contract signing for the insurance. If the consumer makes all payments on the loan without being late, they receive a voucher for a new vehicle purchase after 3 years for that 1% to apply to next purchase."

        Where is the business case in this? Risk is in the favor of the insured not the insurance company. No private company would ever take on this risk. It would have to be a government program and this is no function for government.

        May as well just give everyone a $10K tax credit towards the purchase of a new car.
      • 6 Years Ago
      'This is one amazing company.'
      Anyone who has any foresight or business sense has to be wondering what every other CEO in the auto industry is thinking when Hyundai is the only company addressing the serious economic issues facing consumers. Why is everyone else is still back on their heels and DOING NOTHING!!!

      Hyundai is already in phase two and still nothing from GM, Ford, Chrysler, Toyota, Honda, Nissan, etc. but the same old incentives that don't work.

      Heads should roll and I'm betting the John Krafcik knew his head would roll if he didn't do something. And yet John's head could still roll working for the Koreans b/c they are a tough bunch to work for.

      Am I the only one that realizes that complacency has overtaken our corporate heads??? Where is the creativity and vision???

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