Image courtesy of MSVG
Hyundai Motors was the first company to offer a great warranty program for their cars. It was a smart move to help build brand recognition and get more people to buy their cars. The company is now coming up with another first. Hyundai will be the first company to allow you to return your car if you lose your job (within the first year). I think this is a pretty good move to try and get people to buy a car when car sales are in the crapper. It's called the Hyundai Assurance program and I first heard about on the radio during a commercial. Thinking this is too good to be true, I decided to look into the program a little further.
- Coverage is available on all new Hyundai vehicles.
- Available to everyone regardless of age, health or employment history.
- 12 months complimentary on every new Hyundai loan or lease. Is there a charge after the first year?
- Coverage available for involuntary unemployment, physical disability, self employed personal bankruptcy, international employment transfer or accidental death.
- Only covers up to $7500 negative equity (diff between value of car - what you owe)
- The dealer determines the value of your vehicle.
- To be eligible, you must be current on your loan and you must have made at least 2 scheduled payments.
Let's say that you purchase a $20,000 car and put above average miles on the vehicle. You lose your job and take the vehicle back to the dealer under the Assurance program. The dealer appraises your car and determines the value to now be $10,000. The Assurance plan will only cover up to $7500 in negative equity. What happens to the additional $2,500? You are on the hook for it or you don't pay it and ruin your credit. I really would like to know more about this program such as:
- Can you extend the plan past the first year? What is the cost to do so?
- Does the max negative equity they will pay increase or decrease?
Have you bought a Hyundai because of the Assurance Program?