No One Asking For Hyundai Refunds After Job Loss
UPDATE: People Haven't Returned Hyundais b/c They Weren't Yet Eligible
You know that Hyundai Assurance program where, if you lose your job within a year of buying a new car from them they let you return it for almost a full refund? So far, no one has returned any of their new Hyundais. What does it mean?
The easiest conclusion is that none of the buyers have lost their jobs. But perhaps it just means people who are financially secure enough to be in a position to buy a new car got there by making secure bets, so they would gravitate towards a program that provides buyer protection. While on the face of it The Hyundai Assurance program looked like a way to help the financially shaky, maybe it was really a way to draw the safe money from the sidelines. Then again, it could come down a classic dealership truism that's been around since before The Great Recession, and will remain true even after: once you drive off the lot and bond with the car and show it off to your friends, it's hard for you to give it up.
No Need for Hyundai Assurance, Yet [Kicking Tires]
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Comments:
I doubt the Hyundai Assurance program was designed to bring in buyers who were likely to take advantage of it. Most likely, the goal was to get relatively stable but hesitant buyers to pull the trigger.
My guess is they're not financing financially shaky people either. Also there is or at least should be some shame in getting your car Repo'ed. It shows gross money mismanagement.
For many, your car is your life. I couldn't hold my job without my car. Not everyone lives in a city with public transportation available 24-7, so a car is NOT a luxury item.
Especially a reliable and inexpensive car. Maybe if this was Mercedes, or BMW, or something, we would see people trading them in to save some of that monthly payment. But a Hyundai? Who can get a loan for that and then can't maintain it?
The only way people that lose jobs would trade that in is if they already have another car, or have a line on an El'Cheapo that they're going to pay cash for outright.
It's like a warranty. If things get too bad, you can take it back. It's not like you get to keep it, as with other programs. That would attract the opportunists...
Really it's not that hard to figure out. Even the unemployed need transportation. Those folks probably figure it's cheaper (and easier) to just figure out how to hold onto what they got than turn it back in and go out and buy something else.
@TheWraithL98: I did. I lowered my APR by 9%, put a nice down payment down, and used cash incentives to remove the negative equity of my previous vehicle.
For all those that are about to scream bloody murder about trading in a vehicle that I owed more than it was worth- My daughter has a disability, and we put about 30K a YEAR on my car traveling to Albany and other hospitals. We needed something more reliable when my car hit 140K and I had already put $10K of work into it. (it also had a horrific interest rate and another 3 years to pay on it!)
I'd rather make the payments and have a warranty that covers the huge repairs thank you.
I think it means the Hyundai dealerships are located too far of a walk from the nearest bus stop.
@TheWraithL98: yay, reply works.
From what I've seen, Hyundai / Kia is the only other manufacturer besides Subaru that's been seeing sales increases this year over 2008.
@TheWraithL98: Actually, Hyundai's 2009 sales were higher than their 2008 sales for the first two months of the year.
I bought a Hyundai because of this program. My 6 yr old, paid for Ford Focus has a weird electrical problem that Ford can't seem to fix, but which makes me nervous about driving it. So I bought a Hyundai to have reliable transportation, kept the old car, and if my job disappears within the next year, I can return the Hyundai, still have the old car to get around in, and not be worried about making a car payment with my unemployment check.
The repo guys can't find you when you're living out of it, and move every day.
At least their deal is a heck of a lot better than GM's gas price lock guarantee at $2.99 for three years!
I hope Hyundai comes out a big winner after the financial disaster is over. This is a company that started being the joke of the car world (and in some ways that image is still hard to shake) to being on par with Japanese rivals, while offering better values.
Hyundai caters to people who want to get their money's worth but couldn't care less about brand image. These people tend to be more financially sound, anyway.
@verucalise: Yup, for anyone already in the market for a new car (like myself), the current economic state makes it a phenomenal time to buy one.
My gut said it was a marketing scheme.
@BMRFILE: It helps that they finally hired quality designers. The last few hyundais I've driven as rentals may as well be hondas or toyotas. Solid workmanship and clean lines go a long way.
Who goes out and buys a new car if you think you are in danger of losing your job?
i wonder what happens if you traded something in ...
I love my Hyundai and even if I lose my job, I hope to hang on to it! (Santa Fe, 2006) This car was the biggest surprise ever. I had no expectations (or rather negative expectations) but it's a sweet ride and the price was right.
once you drive off the lot and bond with the car and show it off to your friends, it's hard for you to give it up.
This is the most likely reason. Even if you lose your job, you'll probably still need an automobile, especially when you find new work.
When I first saw the offer, I said to my wife that they'll see few cars returned because for most people, that car purchase is a necessity. It's not likely to be an "extra" car for the household to use.
@noone1569: I think this is more aimed at the people who are fairly certain that their jobs are safe but nonetheless realize that shit happens and they can still get laid off rather than the people who are pretty sure their heads are on the chopping block.
@noone1569: It was Chrysler offering the $2.99 gas. I have a friend who bought a Jeep Patriot during the promotion and he took the rebate on the car instead (you had to give up the rebate to get the gas discount). Even at $4/gallon gas the break even point with the rebate was near the maximum yearly allowance, IIRC.
Maybe it's because people in precarious financial situations can't get car loans!
...not so sure I could easily bond with a HYUNDAI!
@SynMonger: Ah yes, and since hyundai vehicles don't have built in GPS(at least mine doesn't) they won't be able to track you down...unlike GM and many others out there.
What's the source of this news? I find that hard to believe that not one person has taken advantage of it.
Perhaps people aren't returning their cars because they're now living in them? It's cheaper than a house. Free heat courtesy of the greenhouse effect. Central air. No plumbing could be a bitch though.
I watched an episode of Motorweek which had a snippet saying that two people cashed in on this. And this was probably filmed weeks ago...
Tata?
@BMRFILE: At least in the United States, Canada and most western European countries, Hyundai is trying hard to remain competitive by building relatively good quality cars and selling them at affordable prices.
On the other hand, the same cannot be said for Hyundai in South Korea (country of origin for Hyundai / Kia). A recent TV investigative journalism program found rather huge disparities in selling price and overall quality between comparable model Hyundai cars sold in the United States and in South Korea. Generally, in Sotuh Korea, Hyundai is cutting corners on materials and labor plus charging people more to boot.
@verucalise: Well done. And excellent reasoning for it, as well. I have a disabled sibling, and the trips from Wisconsin to Chicago to see her doctor absolutely pile on the miles.
That said, how is it up there? I'll be in upstate NY soon. I hope the roads aren't crap. (Who am I kidding? It's upstate NY, of course they are.)
I too think that it is a mix of highly selective offering and the fact the Hyundai owners are not taking advantage of the program, as cars are an essential mode of transport in the United States.
Unless of course, you live in urban areas with well established mass transit systems (e.g.: New York City, though once the MTA, the State and the City gets their way, it'll be expensive to drive AND/OR to use mass transit too. I hope they don't seriously expect us to walk immeasurable distances or bike in the rather dangerous streets!)
I would love to buy a Hyundai, but as I'm 6'4, it would be out of the question.
Driving in a Santa Fe was very uncomfortable.
Granted, I'm rather cynical, but isn't there a likely 3rd option here that hasn't been mentioned?
Hyundai is actively preventing or helping people from actually using the program?
One the one hand they may be denying legitimate attempts to use the service (similar to Best Buy avoiding a price match) and we just haven't heard about it yet. Or in a possible altruistic twist, maybe people in distress needing to return the vehicle are finding the dealer is amenable to altering financing terms to help get them over the rough spot and avoid the return altogether?
@BMRFILE: I love my Elantra. It will be 5 years old this December, but *knock on wood* is still going well!
IIR the commercials correctly, you have to be out of work for at least three months before this plan kicks in. Hasn't it been in effect for just about that long? If you factor that people don't buy a car if they see themselves getting fired int he next few weeks, much like birth rate boom after a huge blackout, we'll see a big rise in the next few months.
@Serpephone: Try it some time, and I'm sure they will surprise you - at least ONE model will wow you.
@noone1569: There are people at my workplace who thought their jobs were safe a month ago. Their last day is Friday of this week.
duh! that's what sunroofs are for. Just crack it open and stick your head out. Just don't drive on rainy days....
Once you buy a new car, you usually trade in or sell your old car... so you are going to need your new car to drive to new job interviews and all that... so of course you won't trade it back in.... I guess unless you *REALLY* hit rock bottom.
@noone1569: I bought a new car in September because my old car was getting too expensive to fix and fix and refix. I lost my job in January. Does it happen sooner than you think? Yes, especially if there wasn't any indication previously that a company is having difficulties.
@RStui: Agreed. Just because you lose your job, doesn't mean your car can be the first thing to go. If you absolutely needed to, I guess that would be an option, but even right now in which I'm not driving my car in a two-car household, I have no intention of trading in my car or anything because if I get a call for a job interview, I might have to drive. And then where will we be if there's only one car?
@BMRFILE: I've really been hearing more and more about the quality of Hyundai, and they're very nice looking cars when you compare them side by side with their supposedly superior counterparts (Honda, Nissan, Toyota). I'm loyal to Nissan but I would definitely consider a Hyundai.
My husband and I both have Elantras. His is an '02 and mine is an '03. I have a long commute and have almost 110,000 miles on mine and I have had only one problem, a battery that went bad, and it was covered under warranty. Rest of the work has been routine maintenance. And I get 33 mpg freeway. By this many miles, my other cars I've owned (Fords) have needed a ton of work. I'll definitely get another Elantra -- unless I could afford a Genesis!
or no one is actually buying new cars....