Hyundai's New Assurance Program Guarantees Trade-In Values

2012-hyundai-veloster

Hyundai's Assurance program was an instant hit when it launched at the start of the recession in early 2009, giving customers the security of knowing they could return their car in certain cases without a hit on their credit scores. Two years later, the automaker is reworking its promotion to guarantee the trade-in value of the vehicles it sells.

"Hyundai Assurance is a partnership with our owners in their purchase of a vehicle," said CEO of Hyundai America John Krafcik. "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. 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."

Under the program, Hyundai guarantees the residual value of its new vehicles, again providing customers a sense of security when buying a new vehicle from the automaker. Upon purchasing a new vehicle, customers will be given a future value estimate based on figures provided by the Auto Lease Guide. The guarantee is valid only after ownership of 24 months, but no more than 48 months. Customers must also provide proof of scheduled maintenance at an authorized Hyundai dealership.

When a customer returns their vehicle, dealers compare the projected value with the current figure, giving the higher of the two. If for some reason the value dropped, owners are free from paying any negative equity, but if the new value exceeds the previous quote, customers have the opportunity to apply the difference toward the purchase of a new vehicle.

The new Assurance promotion comes as the automaker ended its buy-back program at the end of February. The new promotion applies to all new Hyundai vehicles purchased on or after May 1st. What are your thoughts, will Hyundai hit another home run or won't customers care about the new program?

Rick
I see your point, and for the record, I really like their cars. I wish they would combine the great mileage with a larger gas tanks, though. Perhaps that is part of their marketing as well. Keep the tank small so the fill up is not as costly. I'm going to buy the gas one way or another, so I can't be fooled into thinking I am paying less (even though with Hyundai, people really do pay less since they get more miles per gallon).
Jack
I think people need to remember that everyone thought the old assurance program was "silly" and "stupid." Look what happened after they let the cat out of the bag. Other car companies started copying them AND their warranty programs.
Jack
@Rick It might seem silly to you, but like its predecessor, this assurance program is just meant to drive sales by giving buyers peace of mind. It assures buyers that in spite of Hyundai's reputation for selling cars with low resale value, Hyundai promises to buy back your car in the event you decide you don't like it. But look at the bigger picture. Hyundai is probably betting a lot of people will be encouraged by this plan and end up keeping their cars when they decide they actually like their cars. Bigger picture.
Rick
I like Hyundai, but this seems kind of silly. It only applies to vehicles kept between 2 and 4 years. Most people who plan to keep a car for that short of a time are better off leasing than buying. Most, in fact, won't have it paid off before trading it in. Yes, it is nice to know they won't be too upside down, but all Hyundai is doing is promising it will have SOME value, not necessarily as much as the owner might want.
Dennis
If Hyundai pulls this off (without loosing their shirt) they will OWN the car business!!
carl
Only the companies that have so much confidence in their products can make this kind of promise. Kudos to Hyundai. If it were Chrysler, that would have been from desperation.
carl
Only the companies that have so much confidence in their products can make this kind of promise. Kudos to Hyundai. If it were Chrysler, that would have been from desperation.

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