• Apr 20, 2011
Hyundai is making a grab for more customer loyalty than it already enjoys with its newly launched Assurance Trade-in Value Guarantee, which, as its name suggests, guarantees future trade-in values on new car purchases. The move falls under Hyundai's wide-spanning Assurance marketing scheme, and will give buyers a solid number to determine what their car will be worth two to four years down the line.

The new initiative will be go into effect starting in May, and affects all Hyundai models. The actual value of Hyundai's models will be determined by the Automotive Lease Guide forecast of future value. Hyundai is quick to point out that the residual value for its models is now among the highest in the industry and it's saying that this new program offers one of the major benefits of a lease program, but with all the benefits of actual vehicle ownership.

To qualify, the vehicle must be purchased at an authorized Hyundai dealership and then traded in within 24 to 48 months on a new Hyundai vehicle. See all the details in the official press release after the break.

[Source: Hyundai | Image: Jung Yeon-Je/AFP/Getty]
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HYUNDAI ASSURANCE EVOLVES TO FEATURE ALL-NEW GUARANTEED TRADE-IN VALUE

FOUNTAIN VALLEY, Calif., 04/20/2011

Renewing its industry-leading focus on consumer protection, Hyundai today announced the introduction of the all-new Hyundai Assurance Trade-in Value Guarantee. The Guarantee is a direct result of Hyundai's sensitivity to consumer preferences and is made possible by the strength of Hyundai's residual values, now among the highest in the industry.

This newest addition to the Assurance suite of programs eliminates concern about depreciation by giving Hyundai owners a guaranteed value for their vehicle in months 24 through 48 of ownership. The program will be applied to all new vehicles purchased on or after May 1, 2011 at no additional cost to consumers. Because of the exceptional quality of its vehicles, Hyundai offers more car for the money now, and more money for the car later, under this guaranteed trade-in program.

All Hyundai vehicles sold in the U.S. are covered by the complimentary Hyundai Assurance program, which currently includes the 5-year/60,000-mile fully transferable new vehicle warranty, Hyundai's 10-year/100,000-mile power train warranty, five years of complimentary Roadside Assistance and now Trade-in Value Guarantee.

"Hyundai Assurance is a partnership with our owners in their purchase of a vehicle," said John Krafcik, president and CEO, Hyundai Motor America. "Depreciation is the single highest cost of car ownership. While Hyundai's depreciation is now among the lowest in the industry, Assurance will remove many of the barriers and concerns about vehicle ownership. Through Assurance, we share in our owners' investment, and the Trade-in Value benefit extends this partnership from the initial purchase all the way through what we hope will be the consumer's next purchase of another Hyundai."

Hyundai Assurance Trade-in Value Guarantee is valid for all new cars sold through participating U.S. Hyundai dealerships. The guaranteed trade-in value is determined by the Automotive Lease Guide (ALG) forecast of future value. Customers can trade in their qualifying vehicle towards the purchase of a new Hyundai vehicle during months 24 through 48 of ownership. At the time of trade-in, the customer's vehicle will be assessed to determine the current market value and compared to the guaranteed value. If the assessed value is higher than the guaranteed value, the customer will be able to apply that value toward the purchase of a new Hyundai vehicle. If the assessed value is less than the guaranteed value, the customer will be able to use the guaranteed value toward the purchase of a new Hyundai vehicle financed through Hyundai Credit.

At time of trade-in, the customer must show proof of vehicle maintenance at the recommended intervals through authorized Hyundai dealerships. Coverage is only applicable when the current market value of a vehicle drops below the guaranteed trade-in value of the vehicle. Lease vehicles are not covered by the Trade-in Value Guarantee.

For a full list of eligibility requirements, please 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 800 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program, which includes the 5-year/60,000-mile fully transferable new vehicle warranty, Hyundai's 10-year/100,000-mile power train warranty, 5-years of complimentary Roadside Assistance and the Hyundai Trade-in Value Guarantee.


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    • 1 Second Ago
  • 15 Comments
      Basil Exposition
      • 3 Years Ago
      This program seems to have limited appeal. If you know you are only going to keep the car for a couple years, why not lease?
        benzaholic
        • 3 Years Ago
        @Basil Exposition
        It doesn't require you to give up the car after the specified time. If you love it and want to keep it, you're fine. If you don't want to keep it, you have fewer surprises about its value. Interesting program, and one that probably won't cost Hyundai much at all if they only offer it for a couple of years. Their reputation (whether deserved or not) is on the rise, so their actual residuals should be headed in the same direction. Add in the minor detail about "the customer must show proof of vehicle maintenance at the recommended intervals through authorized Hyundai dealerships," and they won't be losing any money on this deal.
          Jason
          • 3 Years Ago
          @benzaholic
          So you go to the dealership for your oil changes and tire rotations at the recommended intervals. Big deal...unless Hyundai makes the intervals ridiculously unnecessary. Maybe this makes no difference to me as my commute is short so getting to 30K, where they hit you up for all sorts of items, takes me a good 4 years anyway.
          Basil Exposition
          • 3 Years Ago
          @benzaholic
          Well a lease doesn't require you to give it up either. You always have a buyout option when the lease ends, and the buyout price is given at lease signing so there are no surprises. Both give you the option to keep the car beyond 2-4 years. With this program, you pay everything upfront. With the lease you get to postpone the lump payment 2-4 years. Also, what if you hate the car. With the lease you are free to replace the car with anything you want. With this, you are forced to buy another car from the same manufacturer or risk uncertain resale value and the hassles of selling. This program can only be used by folks who get new cars every few years, and the majority of those folks would be better served by a lease, so this program is pretty useless IMO.
        Fulorian
        • 3 Years Ago
        @Basil Exposition
        There's still a lot of people who have the idea of Hyundai's as crappy clunkers that depreciation monstrously. This gives them a safety net that let's them jump the hurdle. Once they buy the car and like it, they don't need to do anything about it after 2-4 years, but it's nice to have the peace of mind to know that if you've made a bad purchase, you aren't stuck. This will be like Hyundai Assurance originally was - more for reassurance than probability of really being used much. It's a brilliant move addressing their greatest weakness on the cheap.
      amygjung
      • 3 Years Ago
      Hyundai is definitely doing well thanks to many combined efforts! As a communicator for project Advanced Technology and Design, I shared this with our audience on the Facebook fan page (www.facebook.com/advancedtechKOR) and twitter (www.twitter.com/advancedtechkr). Come browse the blog for lots of Hyundai and auto related content when you can as well!! (www.advancedtechnologykorea.com). Have a good one and have a happy Friday from Korea!
      Adrian Trimble
      • 3 Years Ago
      Who are these idiots replacing their cars every 1 or even 2 years?
        tonyl1979
        • 3 Years Ago
        @Adrian Trimble
        those are people that make more money thank you.
      MJC
      • 3 Years Ago
      This is a great ploy to keep people coming in every year or two.
      Steve
      • 3 Years Ago
      I had a similar thought about this... but it shouldn't be limited to trading for another Hyundai vehicle. The big concern with buying a Korean car is that depreciation will be a big hit, particularly if you aren't sure you're going to want to keep the car. You're tempted by this shiny new car that actually looks like a real car, not junk obsolete Mazda parts bolted together in a stuffy factory on the outskirts of Seoul. You are considering pulling the trigger, but you can still hear the "Hope you understand nothing is driveable and inexpensive" jokes ringing in your head. You are given some assurance that the car will remain servicable thanks to the generous warranty, but you like to know that you won't lose your shirt if you want to run away from your Korean car screaming after a few years. This only guarantees that you won't take an excessive resale hit if you buy another Hyundai. If someone isn't sure if they want to buy A Hyundai, are they going to jump because they're given the option of buying a second one? A guaranteed trade-in value for trade in on ANY brand of vehicle would allay these concerns, as well as send a clear message that Hyundai is wagering that customers will be pleased and return to the brand in the future.
        Jason
        • 3 Years Ago
        @Steve
        For me this would help if GM did this...and kept it open for all brands under their umbrella. I get Employee pricing through family employees, so I would be stupid to leave the free money on the table by going to another brand. But I would not want to locked into a specific brand. I have a GMC now, but my next purchase could be a Buick or Chevy. In Hyundai's case, I see what others above stated. If you don't like anything (or they don't have a competitive vehicle in the form you want), then this leaves you stuck. Although there is nothing stating that you HAVE TO buy another Hyundai right?
      kikaiju2
      • 3 Years Ago
      My Hyundai is coming up on five years old now. I am at the point where I am thinking about trading it in for something else, but I want a pickup and Hyundai has nothing to offer me there. Neither does Kia. So I am not exactly enthused about a trade-in for another Hyundai. But that's the only issue. The car I have now has been good and performed well. No issues with the brand. I just need a vehicle more suited to hauling stuff right now.
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