Lost Your Job? Hyundai Lets You Return Your New Car
To crowbar open the pocketbooks of newly thrifty shoppers, carmakers are getting more creative. For instance, if you finance a new Hyundai after Jan 3 and lose your job, supposedly the car maker will let you return your vehicle, with no further financial obligation, and no damage to your credit. Intriguing, but definitely one to scour the fine print on.
Hyundai Assurance [Hyundai via Free Money Finance]
This is a test using rich text formatting and html links. It's the generic "company" ad that should appear on all posts with the Company category if they don't have an ad attached to a specific company.
Post a comment
Comments:
So, Consumerist still in tight with the jalopnik boys, eh? Cool, and I welcome our new CU overlords.. (wait, I read somewhere that joke is passe... I apologize)
Judging from what it says on the website, it looks like a really good deal. It covers up to $7,500 of negative equity, so that's the difference between the amount owed on the car and the trade-in value, and it's only good for the first year. It does say additional restrictions apply, though, I'm really curious about that.
Still, once the Genesis coupe goes on sale, I'm going to seriously consider getting one.
Kudos to Hyundai if this is on the up and up!
@Gearhead_42: Jalopnik and Consumer Reports are mortal enemies. This has been written since the beginning of time.
/awaits forced reeducation
This is a crock of crap the size of Chrysler's $2.99 gas campaign.
I take my paid for, POS Mercury that is in good mechanical condition but has a lot of miles and 6 years of wear on the shiny parts and trade it for a Hyundai Genesis. Next month, I lose my job so I turn in my Hyundai and they forgive me of my debt. WOW! Way to go! No car payment! Yeah!
Except!
Now I have to go out and purchase some $2K junker with a questionable past and a quarter million miles to get me to and from job interviews. This means that I have lost money in the whole deal and Hyundai wins big because they save themselves the cost of a reposition and the recovery of legal fees associated with the repo. The sad part is that my Mercury was better than this junker and I had the money in the bank which is crucial to surviving a layoff.
Sounds to me like Hyundai has come up with the perfect con. I hope Americans are not chumps and fall for this deal.
I actually did a double take when I saw the commercial last night. For the first time ever, I hit the rewind button for a commercial. Like said above, if this deal is on the up and up, serious congrats to Hyundai.
@ohgoodness: If you're able to get a loan to buy a house right now I doubt you will have any sort of employment issues any time soon.
i saw these ads running constantly over the weekend during football games and thought that it was notable that they say "if you lose your income." Income, not job.
i would imagine that they have a very broad interpretation about what they consider "income," and strict standards for approving this benefit.
i would love to see the fine print on this program, but it says that i must "...see participating dealer or program certificate for complete coverage details."
Maybe i'm just cynical.
Sounds like a pretty good plan. More details at Business Week: [www.businessweek.com]
You have a year in which to return the car, but you have to have made at least two payments. So basically you have a 10-month window during which they'll take the car back and refund you the deprectiation (up to $7,500)...so it's a nice little insurance policy, but probably has some really, really fine print.
Is this free, or is it the payment protection service (fee) that sellers have been using for a long time? Either way, it may not be so great.
Every finance deal I've seen came with this offer; mostly to cancel out that sweet 0% financing they just gave me. All of them required a monthly fee, and that fee was a percentage of the remaining balance with no maximum.
I just got a brochure on it for my wife's new Macy's card, and the requirements are horrendous. You have to wait three months after losing your job to cancel the debt, during which you must continue making payments and you can't get a new job. Yeah right.
I expect the rules for this will be just as labyrinthine and unreasonable, especially once you get to the actual paperwork. This is probably nowhere near as great as it sounds.
This will end in tears...
I see this as being rife with flaws that will allow for abuse. Ever see what people do to rental cars?
While I applaud Hyundai for out-of-the-box thinking, never underestimate the sleazy things the public can (and will) do.
Just ensure, as with any business transaction, that you scour the fine print.
Ask questions and get answers before you sign anything.
But sounds like a really good idea if it is what they say it is.
@The Name's Ash78, Housewares: Good thing that this is Consumerist and not Consumer Reports then, isn't it?
@The Name's Ash78, Housewares: It's like seeing twins, separated at birth, reunited after one has been raised by Jesse Helms, the other by Jesse Ventura...
Here is the info form a Hyundai dealer...
It is an insurance policy Hyundai is buying for its customers. It cost $0 to the customer or dealer. It allows you to back out of your loan obligation in the event you are involuntarily unemployed, lose your license due to illness, have an international job transfer lasting more than 24 months, are self-employed and file personal bankruptcy, and a few other instances. So ultimately, if you end up in a situation where you can’t afford your car note you can walk away. Yes that means you turn in the car. But you won’t ruin your credit with a repo or late payments. You get to just walk away. For some people that won’t be the best thing; obviously they will need a ride. But for some, walking away from the loan without any negative effects on your credit is a fantastic option - especially when it didn't cost you anything.
Coming from someone who works really really hard to run a car dealership as honest and straight forward as I can possible be, this is a very good thing for the customer.
I saw commercials for this last night while watching football.
It's still amazing how Hyundai is able to run these kinds of promotions while the "Big Three" are running for handouts.
I've never considered a Hyundai but anything is possible.
If you are in Danger of losing your job, a new car purchase isnt something you should be considering anyway.
@G_Money21: So in this economy no one should buy a new car?
@rainmkr: Just because you have a great credit rating doesn't mean you won't lose your job tomorrow. Maybe you mean the person probably has a bunch of cash in the bank, but the two aren't related.
I can see how this would end terribly, but this is a great thing for those who are in dire need of a car but are holding out because they aren't quite sure where the economy is going. In fact, I have a friend who would fare well with this plan. The only reason she has never bought a car is because she's never quite positive where she's going to be, but good lord she NEEDS a vehicle, asap. Go Hyundai, either way.
@loogee: one reason they can get away with it is b/c they have an unfair advantage in the marketplace with KORUS FTA. they are able to import cars to the US without the same restrictions as japan, german, et al & still benefit from paying a lower wage & not having to expend money on capital here in the US.
that's also the main reason why they can build super-inexpensive autos.
For some reason, I picture this mostly being used by people who can't realistically assess their financial situation and instead of focusing on the basics (frugality, be ruthless about cutting costs, pay off debts, etc) try to get by with deals, trial periods, paying off one credit card with another, not paying the electric bill because 'they can't shut it off in the winter' and all kinds of other justifications for purchases & lifestyle they just can't afford.
I'm not saying it's a bad deal, but it does seem to lure those with unsteady jobs into thinking a new car purchase is totally reasonable. Or maybe I'm just thinking of certain specific people whose personal financial 'system' just burns me up.
If Hyundai was serious about their tagline "We're in this together" they wouldn't take the car back, they'd just let you have it. Also, corporations who market on the idea that people will lose their jobs are opportunistic bottom-feeders like the people who sold sub-prime mortgages
@RandomHookup: Exactly, George W Bush has a good paying job today, and in a little over 2 weeks he will be unemployed. But more seriously, if you have perfect credit and money in a 401k, and your company through no fault of yours goes under, maybe you can keep the old beater just in case.
Not everyone knows they're in danger of losing their job. Haven't there been quite a few stories this past year about employees showing up for work only to find the doors locked and a sign on the door that says, "Get Bent"?
@G_Money21: How do you know if you are in danger of losing your job? I had a very good, stable job until the Board of Directors made a decision to fire the FOUNDER of the company, and the new CEO axed any manger hired by the previous CEO. Of course that was 2 years ago, and the company had to liquidate with the new tool they brought in.
@G_Money21: Last time I bought a car, I had a solid job. 2 months later, the facility I worked was up for Strategic Review and 4 months beyond that I was out on the streets. And th at was in 2004 when the economy was strong and I found a new job within hours of losing my old one with a substantial pay raise.
But, back to the point, A year is a long time for things to change. Business can take a 180 in the time span of a month. One day customers are knocking down a company's door, the next day the company can't beg a sale. Look at retail in the past year. Look at the automotive industry last year in May through the end of the year. Or look at information systems in 2001.
@cgarison: Why trade in a perfectly good Mercury? I'm not suggesting you don't buy another car if you want one, but it's always good to have a second car around. All you have to pay is registration and PL/PD.
I bet a story about this not working will be on Consumerist by the end of the month. ;)
I like to think of this as the "Free Anunual Car Upgrade Program"
Step 1 - Buy Car
Step 2 - Wait 10 Months
Step 3 - "Lose Job" Involuntarily
Step 4 - Turn in Car
Step 5 - Get the next model year's version of what you have.
@HilaryAndromeda: What about companies that sell life insurance? Are they not "opportunistic bottom-feeders" because they are selling a service based on the idea that people will lose their lives? And the same thing for a whole host of other insurance (and related) services?
@G_Money21: Unless you're a police officer who only pulls over/beats up/shoots black people, who *isn't* in danger of losing their job?
I love my Hyundai car so much. This company has come a really long way since the early tin cans they first imported to the U.S. I really encourage anyone looking for a new or used car to test-drive a few Hyundais at a dealership. No, I am not on the Hyundai payroll!
Lady says, "Hi, I lost my job and would like to return this vehicle? As you can see it's undamaged."
*man smashes out tail lite with crowbar*
"You can't return that vehicle. It's damaged."
I don't want to come across as an elitist of any sort, but if you have a solid background and education and have an expertise in something, and KNOW you are in demand, then I would say you don't have anything to worry about.
Make yourself indispensable, where they promote you or lose you. That's the key.
@G_Money21: Solid background, education, and expertise generally mean you aren't buying Hyundais. Not everyone has their shit together sadly.
@cgarison:
Good points. Don't forget that most people who buy a new car are not expecting to lose their jobs within a year. That's why its limited to the first year.
Come on people, use your heads. The big corporations are only looking out for their best interests, they would not be offering this if it did not either save or make them money. And you can take that to the bank!
.
Too bad we can't do the same thing with a house.