Hyndui assurance

Air Langhi · Jan 6, 2009

I am sure everyone has seen this commercial.

I think it is pure marketing genius.

Some American company should have thought of it.

macalu · Jan 6, 2009

what's the fine print?

JuanValdez · Jan 6, 2009

Air Langhi said:

I am sure everyone has seen this commercial.
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No....

across110thstreet · Jan 6, 2009

http://www.latimes.com/business/careers/work/la-fi-hyundai6-2009jan06,0,2449126.story

Hyundai Motor America unveiled a novel approach to the problem over the weekend. Dubbed the Hyundai Assurance Program, the South Korean automaker said people who finance or lease a new Hyundai during the next 12 months could return the car if they "experience an involuntary loss of income" within one year of the purchase date.
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According to a Hyundai news release, buyers can return a vehicle for no extra charge within 12 months of purchase if any of the following occurs:

* Involuntary job loss;

* Physical disability;

* Loss of driver's license for medical reasons;

* Job transfer overseas;

* Personal bankruptcy filing by a self-employed worker;

* Accidental death.

To qualify, the buyer must have made at least two scheduled payments on the loan or lease and be current on the payments, as well as pay the amount over the $7,500 negative-equity threshold. The value of the vehicle will be determined by the dealer, who will be allowed to re-sell the vehicle, Hyundai said. Returning the car shouldn't have a negative effect on the customer's credit, the automaker added.
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A customer buys a 2008 Santa Fe SUV and gets a five-year loan for the total purchase price of $22,300 (including rebates, taxes etc.). About $350 of the $430 monthly payment goes toward the principal on the loan. After nine months, he's paid about $3,200 in principal on the loan and owes $19,100.

The buyer then loses his job and returns the vehicle to Hyundai. Assuming the used Santa Fe is appraised at $16,000, the buyer would be "under water" on his loan by $3,100 -- but that's easily within the $7,500 negative-equity threshold provided by Hyundai. He would owe nothing.
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