New Hyundai Assurance provision locks gas at $1.49/gal for one year [w/VIDEO]
Hyundai Assurance Gas Lock ads – Click above to watch the videos after the jump
Hyundai is piling on additional incentives to boost its Assurance program as the industry heads into the dog days of summer. The newest promotion, Gas Lock, fixes the price of regular unleaded at $1.49 per gallon for the next year. The program runs July 1 through August 31, and eligible vehicles include the Accent, Sonata, Tiburon, Elantra, Elantra Touring, Entourage, Azera, Santa Fe, Tucson and Veracruz. Customers choosing to utilize Gas Lock will forgo $1,000 in available rebates, making the incentive a gamble that gas prices will remain high.
Hyundai Assurance struck at cord with the American public when it offered payment protection in the event of job loss. Now Hyundai is looking to give consumers increased peace of mind over of the volatility of gas prices, which have swung from under $2 a gallon a few months ago to nearly $3 at the beginning of summer.
John Krafcik, CEO and president of Hyundai Motor America, says the company's research shows that "nearly 40% of potential new car buyers are staying out of the market specifically due to uncertainty around future gas prices."
You may remember that last year, Chrysler tried a similar promotion, offering the opportunity to lock in gas at $2.99 per gallon when a gallon of petrol was at an all-time high of about $4.50. The move didn't appear to be very successful for the Pentastar, as most opted to instead take the upfront cash on the hood. Hit the jump to pour over the particulars of Hyundai's Gas Lock promotion, watch the two commercials, and let us know in the comments section if you feel customers would be better off taking the $1,000 or one year of $1.49 gasoline.
[Source: Hyundai | Image: Justin Sullivan/Getty]
Hyundai Assurance Gas Lock Commercials
PRESS RELEASE:
Hyundai Tackles High and Uncertain Fuel Prices with Assurance Gas Lock -- $1.49 Per Gallon Guaranteed for a Year
With Assurance Gas Lock and One of the Most Fuel-Efficient Lineups in the Industry, Hyundai Welcomes Owners Trading Out of Older Gas-Guzzlers
FOUNTAIN VALLEY, Calif., June 30, 2009 – With gas prices expected to push over $3 per gallon during peak summer travel months, Hyundai Assurance Gas Lock guarantees a year's worth of gas at $1.49 per gallon on most Hyundai models leased or purchased between July 1 and August 31, 2009. Hyundai Assurance Gas Lock complements Hyundai Assurance and Hyundai's 10-year, 100,000-mile warranty, and is available with special rebate and financing options on individual models.
"Hyundai Assurance is a unique platform because it enables us to partner with consumers in ways that address their immediate concerns," said Joel Ewanick, vice president, Marketing, Hyundai Motor America. "We've extended Hyundai Assurance to cover gas prices just as peak summer demand traditionally strains budgets further, guaranteeing most new Hyundai owners a year's worth of low gas prices. It's another way we show consumers that, in this downturn, we're in this together, and we'll get through it together."
The average U.S. price for regular-grade gasoline closed at $2.64 per gallon on June 29, 59 cents per gallon higher than its price at the end of April according to the Energy Information Administration.1 Regular-grade gasoline prices are expected to reach their summer seasonal peak in July, with a monthly average close to $2.70 per gallon, and many local markets over $3.00 per gallon. Hyundai Assurance Gas Lock enables consumers to save between $1 and $1.50 per gallon at the pump from current gas prices with the purchase of a new Hyundai.
"Our research shows that nearly 40 percent of potential new car buyers are staying out of the market specifically due to uncertainty around future gas prices," said John Krafcik, CEO and president of Hyundai Motor America. "With Assurance Gas Lock, we're empowering consumers with gas price stability so they can make a confident vehicle choice. And for those buyers out there driving older gas-guzzlers that qualify for the new government CARS program, we think our fuel-efficient lineup of award-winning vehicles, combined with Assurance Gas Lock, makes Hyundai an unbeatable combination."
To sign up for Hyundai Assurance Gas Lock, new Hyundai owners simply register their valid Visa, MasterCard, American Express or Discover credit card, or a Visa or MasterCard check card, at hyundai.pricelock.com. After enrolling, the consumer will receive a new Hyundai Assurance-branded card to be used for all future fill ups. The consumer is billed $1.49 per gallon of regular-grade gasoline, regardless of the price at the pump, and Hyundai pays the rest. (The driver may elect to purchase mid-grade gasoline for $1.64 per gallon, or premium gas for $1.79 per gallon as well, although all eligible Hyundai vehicles are factory-certified for regular fuel.) The card can be used at any gas station in the Voyager credit card network, which covers 93 percent of gas stations nationwide including brands such as Exxon, Chevron, BP, Shell, Mobil, 76, Texaco and many more. Consumers are eligible to purchase a maximum number of gallons equal to 12,000 miles divided by the EPA combined fuel economy rating for the qualifying model.
Hyundai Assurance Gas Lock is standard on all new Accent (excluding base model), Tiburon, Elantra, Elantra Touring, Entourage, Sonata, Azera, Santa Fe, Tucson and Veracruz models, most of which are eligible for $3,500 to $4,500 in government CARS (Consumer Assistance to Recycle and Save) vouchers for those consumers with less fuel-efficient trade-ins. Consumers will be given the option of accepting the full rebate offered on an individual model, or may choose the Hyundai Assurance Gas Lock promotion, reducing the rebate by $1,000. Four Hyundai models achieve more than 30 miles per gallon on the highway –Accent, Elantra, Elantra Touring and Sonata. Hyundai ranks third in corporate average fuel economy according the U.S. Environmental Protection Agency, so consumers will realize further cost savings by stepping into a more fuel-efficient model than they currently drive.
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 Gas Lock complement America's Best Warranty as standard protection on eligible new vehicles financed or leased from a participating Hyundai dealer. For full details about the programs, visit: www.Hyundai.com.
HYUNDAI MOTOR AMERICA
Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 790 dealerships nationwide.
PRICELOCK
The Hyundai Assurance Gas Lock program is offered in partnership with Pricelock. Pricelock, based in Redwood City, California, is the world's first company to combine patented technology and commodities expertise to bring price predictability to the volatile $700 billion retail fuel market. The company also offers Carbonlock(TM), a unique, patented "green fleet" program that allows fleets and businesses to efficiently acquire certified carbon offsets and become carbon neutral. Pricelock can be found on the Web at www.pricelock.com.
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Reader Comments (Page 1 of 2)
mapoftazifosho 11:32AM (6/30/2009)
This is pathetic...
Reply
ronEbear 11:53AM (6/30/2009)
Your post or this reply?
Quantumphysics 4:08PM (6/30/2009)
Hyundai:
WE WILL F**KING DO ANYTHING !
Wobbly_ears 11:33AM (6/30/2009)
Did Hyundai hire geniuses from Chrysler??
I used to think John Krafcik was a smart auto executive, but I am having my doubts now after he signed off on these ridiculous ploys
Reply
Alex 11:34AM (6/30/2009)
This is not Vegas, take the sure bet and go for the $1000 on the hood.
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Chris 11:38AM (6/30/2009)
at 12,000 miles a year.. assuming 25 miles to the gallon. that's what, 480 gallons per year.
if prices stay at 2.50/gallon, you only save a dollar per gallon.. 480 dollars..
not worth it..
it would have to be what, 3.50ish dollars a gallon to be comparable for the whole year.
Reply
AndrewNoNumbers 2:37PM (6/30/2009)
Thanks for doing the math, I was just gonna ask.
Luis 11:39AM (6/30/2009)
This isn't a great idea... it didn't work too well for Chrysler, but of course I believe Chrysler had MUCH more money on the hood of most of their cars, and $2.99/gal is double $1.49/gal. and with gas over $3/gal soon, it may be enough to get people to buy. Also, Hyundai arguably has a much more attractive product than Chrysler, so it might work for them too - especially just getting people in the door.
Reply
montoym 1:53PM (6/30/2009)
quote from Luis:
- "and with gas over $3/gal soon, it may be enough to get people to buy." -
Well, if they could count on the uninformed to buy their cars, they'd do jus tfine.
For one, gasoline is not likely to be over $3.00/gal soon. At least not according to the current trends. As of yesterday, the National average for Regular Unleaded stands at $2.64/gal. That's a decrease of about 5cents from the prices a week ago. http://tonto.eia.doe.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm
Secondly, we are at the height of the summer driving season really, so this is likely to be as high as prices will climb(+/- 10cents or so). Once the summer starts to wind down, prices will again fall, as they do every year. Note when the sky-high prices of last year peaked(hint: it was mid-July). It's especially funny, because Hyundai mentions this(and the current average prices) in their press release. I guess they just assume that the average consumer is too stupid to do the math and take the cash instead despite being given all the clues.
So, if one opts to take $1.49/gal gasoline, they'll be saving less and less money per gallon as fuel prices decrease later this year(again, due to the cyclical nature of fuel prices, and even admitted by Hyundai). Then, they'll lose the discount just in time for next year's higher summer prices.
Not to mention that in order to save more than the $1,000 that's otherwise offered, you'd have to drive a lot(and you're likely limited on the usage of the discount) or hope that gas prices go up dramatically.
Better to take the $1,000.
Swede 11:41AM (6/30/2009)
This sends out all the wrong signals Hyundai. Work on your mileage instead.
Reply
EnviroBob 11:54AM (6/30/2009)
Yes, Hyundai, make your cars get the same or better mileage than Toyota. Oh wait, you're already doing that.
sfast 12:14PM (6/30/2009)
Work on their mileage? Most of there cars get good mileage and they don't have a glut of weak SUVs to sell like Chrysler did. And thats whats odd about it.
PiCASSO 11:46AM (6/30/2009)
The Genesis is in the advertising... yet it's not in the $1.49/gal program. False advertising?
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naggs 1:32PM (6/30/2009)
i know, first thing i did was scan the list
those things are flying off lots
XJ 11:48AM (6/30/2009)
I think Hyundai is reaching a little too far this time. I'd like to meet the marketing genius behind this and whack him/her with some sense.
Reply
ronEbear 11:53AM (6/30/2009)
OK then, propose something better marketing genius. Do you work in marketing or Mark eating.
AndrewNoNumbers 2:37PM (6/30/2009)
No one's forcing you to use this. If you don't like it then just take the cash.
Vizel 12:14PM (6/30/2009)
I'm really sorry... but just wow. I am sick of all the hatred against one automaker or the other in this whole Autoblog. =P... (Alright, I am biased against some automakers too, such as "XXXX wanna be YYYYY can go suck my balls." but I keep the bias to myself.) For example: This is a reputed auto company with 7th highest brand value in the world, also the 4th-5th largest. May not have the reputation in the United States as of yet, but it certainly was the most reliable non-luxury automaker in 2009 JD surveys.
And yeah, most of the automakers are in doo-doos right now, hello reality of recession. And they are trying to do something good to customers by sucking your balls for you in the most creative ways... in which none of the other automakers domestic or foreign in the US were able to or willing to do. Come on guys, we are better than this... or has America become the infamous bash everything China/Korea Japanese Nationalist Bloggers? (No, I'm White)
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dukeisduke 12:13PM (6/30/2009)
"Ernest Pumps Gas".
Reply
Fau Veh 12:44PM (6/30/2009)
Hmmm.
I guess I am in the nearly 60% of potential new car buyers who are staying out of the market specifically due to uncertainty about future job security.
If Hyundai could assure that, I'd happily buy a Genesis Coupe.
Reply