Jill Merriam Key Hyundai Blog

Is Hyundai Assurance Legit or Will the Fine Print Get you?

February 19, 2009

As the owner of Key Hyundai of Manchester, I have heard this question asked more than a few times.  The last 18 years of mass consumerism has lead to a very cynical population, hasn’t it?  So, I went to work and read all the fine print of the Hyundai Assurance program  to make sure I was comfortable.  I now know that it’s legit.  But, the consumer still doesn’t believe it.  The challenge is how to get Key Hyundai of Manchester’s customer base to realize it was legit.  And finally, I found an independent review of the program and it looks good.  Edmunds.com analyzed it from front to back and agrees, there is no fine print. 

The way the Hyundai Assurance program works is that if you lose your job, you call Hyundai and file a claim.  They authorize your claim and take the car back.  Hyundai then turns to us as the dealer and requires us to buy the car from them.  We then market the car as a used car at Key Hyundai of Manchester.  The difference between what they paid you and what we paid is insured.  So, see, the risk to Hyundai is actually pretty low.   They are paying an upfront cost of everyone who buys a new Hyundai.

Want more information?  Go to:  http://www.driveworryfree.com/hyundai_assurance.html

Here is the article I found about edmunds.com review:

No Big Consumer Traps In Hyundai Job-Loss Deal, Experts Say

Last Update: 2/18 9:26 pm
 By MARY CORNATZER
Raleigh News and Observer

By now you’re bound to have seen or heard the Hyundai ad that promises to take back your car if you lose your job within a year of buying it.

And if you’re as cynical as most people, you probably thought: What’s in the fine print?

Well, nothing too onerous, it turns out.

Philip Reed, the senior consumer advice editor for edmunds.com, an automotive research firm, says that he’s heard of no hidden traps.

“It’s a pretty remarkable program,” Reed says. “It strikes at the very insecurity that many car buyers have: Can I step into a long-term commitment knowing that I could lose my job or that the economy could get worse and I couldn’t make the payments?”

It’s great to think that if the worst happens, your credit won’t be ruined, but Reed points out that the company is not being completely altruistic. The aim of the offer, after all, is to boost sales or at least brand awareness.

So far, that seems to be working. Hyundai’s sales last month were up 14 percent over a year earlier, a bright spot in an otherwise dismal market.

Mike Hammer, sales manager of Southern States Hyundai in Raleigh, N.C.,credits the Assurance program, as it’s called, with increasing the public’s awareness of the brand but thinks it’s the cars’ value and Consumer Reports rankings that help make the sale. He says sales were up in November, December and January.

Reed says he’s surprised that other automakers aren’t offering similar programs, though he points out that there are plenty of other deals out there.

Here’s what Hyundai says about the program on its Web site:

“If you find that you cannot make your payment because of a covered life changing event, we’ll allow you to return your vehicle and walk away from your loan obligation — and in most cases we will cover most, if not all, of the difference.”

Here’s the fine print, such as it is:

Hyundai defines life-changing event as involuntary job loss, personal bankruptcy if you’re self-employed, getting transferred overseas, physical disability and accidental death.

You must be buying or leasing a new car. You have to make at least two payments before you can file, and you have to be up to date on your payments.

Hyundai will pay the difference between the car’s trade-in value at the time you file a claim and any remaining balance on the loan up to a maximum of $7,500. It decides the value. So if the car depreciates more than $7,500 — say you’re really tough on it — you’ll be on the hook for something.

And you can’t just walk in, throw your keys on a desk and walk out. You’ll need to fill out forms and provide proof of your claims.

What about price? Are you stuck with the sticker price?

Nope. Whatever price you negotiate, the offer comes with it. You also can finance the vehicle wherever you’d like, so you can shop around for the best rate.

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