The Article I found came from CNN.com and discusses the new “deal” that Hyundai is providing to its consumers. The article ‘Laid Off? Hyundai will take your car back’, discusses that Hyundai is allowing its consumers to buy a car and if they lose their job within a year they can give the car back no stings attach. The carmaker’s website said “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 over most, it not all of the difference.” The company knows that car shoppers aren’t influenced by rebates and other normal incentive because they are too worried about making payments. If a consumer buys a vehicle from Hyundai and then they get laid off within a year and are unable to continue to make the payments, their credit rating will not be influenced by this as well. By giving the car back they no longer have obligations to the loan. The deal does not only deal with people that lose their job though, it also benefits those that have personal bankruptcy if self-employed, that are getting transferred overseas, or an accidental death has occurred.
The program is managed by Walkaway USA, which is a subsidiary or Dallas-based EFG Companies. They provide support services for auto dealers.
I think that this is a great idea but it might take awhile for an impact to develop. Not everyone is going to go buy a car because of this great deal but many will start to think about Hyundai. With the economy the way it is all companies are going to have to change the way that they sell things. By feeling “safe” consumers are able to buy products and I think that is exactly with Hyundai is aiming to do. The only thing with this idea is that it won’t be beneficial for everyone. It only benefits people that can afford to make a car payment now and may not in the next year. What about the people unable to afford a vehicle now and are in need of one? I think that this is a good start for Hyundai and it allows other car companies to try new things as well.
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I saw the ad for this the other day and had the same thought--what a great concept for this economy. When Hyundai came out some years back, I thought of it about the way I think of Kia now--junk. But over the years and keeping up with consumer reports, I actually considered one for the first time when we were purchasing our last vehicle. Like you stated, this may not be an incentive for everyone to buy their car, but it will get them noticed and on the radar. And now that they have the quality history behind them as well, I think they are on the right track.
ReplyDeleteAfter reading this I think Hyundai is definitely working on a new PR angle to get more customers. A person's financial status can change so easily in today's world. Being able to give the car back if you are no longer able to make payments is definitely a safe fall back when thinking about buying a vehicle. I was thinking that another good plan would be if a person is unable to make payments then the company an the car owner could make a deal and give the person some time. If a person loses a job and a car all at the same time it would be hard to get back on thier feet. If the car owner could stop making payments for a few months then I think a company would really see business improve.
ReplyDeleteI think the ability to walk away from a car loan was a great marketing technique on the part of Hyundai. Not only are they offering a service that is very appropriate based on the nation’s economy, they are getting their name out there in a way that it has never been before.
ReplyDeleteMost people think of the “big four” when talking about car companies: Chevrolet, Ford, Pontiac, and Toyota. Hyundai has not been a household name, pretty much since their conception.
With an offer like this, they are not only getting their name out there, they are getting the name recognition with a never-before-heard-of offer. I bet their PR rep got a bonus for killing those two birds with the same stone!
I agree with everyone that this would be great for the economy what is this really teaching people a life lesson. Not that I am all about lessons but if they are doing this with car loans what would be next. Are they going to free people from all of their debt. I like Erica's idea of making some sort of a deal.Maybe the car owner could put payments on hold for a certain amount of time until the person is able to find another job. Or they can work out so sort of compensation for the car. Like that person works for the car company for a short amount of time until they find a new job as well. I just dont feel that it is totally teaching anyone anything my making them car payment free. Great public relations article Jess.
ReplyDeleteIf they just started doing this, they have no idea of what is going to happen once someone that has bought a car and then needs to return it. Are they really going to stick by their word? Will there be some fine print saying "only under this circumstances may you return the car", or is the offer as great as it seems?
ReplyDeleteBut yes, I do agree with the fact that many more companies need to start thinking of people with money issues and making things more affordable for them now.
Hi Jess,
ReplyDeleteWhat an interesting article and what a great PR company this auto maker must have. To be forward thinking and the first to come up with a plan that deals directly with the economy.
I am sure that they have the bean counters that calculated the numbers of the people who may have to return their vehicle and said compared to the exposure they will receive from being perceived as a car company who cares the cost was inconsequential.
This new idea may help the US auto makers take the necessary steps to think outside of the box and come up with more innovative ideas to sell cars not solicit congress for money.
Brenda
Well it seems like it would be a great deal to do. The thing is are they just trying to market the people with bad credit, no credit, or people that are broke. How long would you have to not make a payment to return the car? If you miss one do you have to return it? It seems great but i really think there is a lot more behing this than what they are saying. Nothing ever seems like it is a good deal that works ouT is what i have learned
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