Blog #1

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.