When the U.S. economy tanked in late 2008, Hyundai stepped up to the plate with their Hyundai Assurance program. While it included Hyundai’s standard 10 year, 100,000 mile powertrain warranty and five year roadside assistance program, it also included a provision that allowed a buyer to return the car to Hyundai if he lost his job. At a time when companies were shedding employees like a dog sheds fur in the summertime, Hyundai’s Assurance program was guaranteed piece of mind. Combined with improved product quality and revised styling, the program helped Hyundai move a boatload of cars. Since (in Hyundai’s eyes, anyway) the economy in the United States is improving, the automaker is ending the job-loss protection at the end of this month.
Over a million vehicles have been sold by Hyundai since the program began in January of 2009, but only 350 vehicles have been returned to Hyundai under the provisions of the agreement. Hyundai insured each sale, so the automaker was compensated for any potential loss on an individual transaction. They also had the ability to flip returned cars as clean, low mileage trade ins, ensuring that buyers had both new and used car options at Hyundai dealerships. EFG, the company that backed Hyundai’s Assurance program, is seeking to partner with other automakers to offer a similar peace of mind guarantee, and has already entered into agreements at the dealership level. Given the uncertainty of the U.S. economy, and the ever growing ranks of the unemployed and underemployed, I say there’s still a need.
Source: Left Lane News