Hyundai Assurance Program Helps Sell Cars

Hyundai stands as a unique bright spot amid all the dismal economic and auto sale news. Not only has it managed to greatly up its street cred with the award-winning 2009 Hyundai Genesis, but now it appears as if its Assurance program may be a hit with car buyers as well.

Hyundai credits the program — which allows car buyers who find themselves laid off to return their vehicle within the first two years — with pushing their January sales figures into the black. While nearly every automaker reported double-digit declines in sales, Hyundai managed to increase sales by 14.3% compared to February 2008.

John Krafcik, CEO of Hyundai America, says Assurance is responsible for 10%-15% of the increased interest. So far, only two buyers have taken advantage of the program and returned their cars, which shows that psychology goes a long way. By offering peace of mind, Hyundai may have found a winning sales strategy.

Hyundai Says Assurance Program is Effective (Autoblog)

Comments

Considering you have to make the first two scheduled payments and the program only started at the first of the year, no surprise few have tried to return their car so far.

I have to wonder if part of this isn't due to lenders being more willing to lend for a new Hyundai now. After all, you can finance or lease through a third party and this is essentially like carrying $7,500 in gap insurance during the 1st year, when the lender is at greatest risk. Could be some of these people aren't worried about job loss, but are finding it easier to buy a Hyundai than another car. Either way, was a smart move on Hyundai's part.

In the type of fearful economic climate we live in today, that alone is enough to move hyundais (and kias). now with this program in place they've taken away the doubt that weighs heavily on most people when considering a new car purchase. Its a brilliant program, the problem is-you're still buying a hyundai. Granted, they've made leaps and bounds in quality but they are still far from the quality one can expect in other imports, not to mention their resale value is in the dumps. i strongly recommend going with a used honda, toyota or even nissan over new hyundai.

Dan,

On what facts and figures do you base your comments? Especially saying they're "far" from the quality of other imports, especially Nissan? I certainly haven't seen any data that would support such a claim. Where does your data come from? And while some Kias certainly remain below average, most Hyundais are at least average now. Beyond the Rio and Spectra, exactly what models do you know of that are "in the dumps"? I await your data.